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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Lincoln dealers frustrated over slow MKZ production ramp-up

Lincoln has clearly been working hard to get the word out about its 2013 MKZ sedan. The Dearborn automaker has taken out lavish spreads to trumpet its boldly styled new model in magazines of every description, along with placing commercials for both the vehicle and the reborn brand behind it on all manner of television programs, including the super-costly Super Bowl earlier this month.
Pity, then, that Lincoln dealers don't have enough MKZs to sell. According to The Detroit News, parent company Ford has spent a good portion of its time at this week's National Automobile Dealers Association meeting in Florida attempting to pacify upset dealers who don't have enough examples of the pivotal new vehicle in stock.
As the DetNews notes, Lincoln only sold 453 MKZs last month, a whopping 73-percent decrease over the same period last year when the sedan's predecessor was on sale. In fact, the stunted supply had enough impact that Lincoln's January figures worked out to a 32-year low for the brand, just as it's trying to get back on its feet. This, despite the fact that the MKZ is said to have the biggest number of pre-orders in the marque's history.

2017 Lincoln MKZ is a 400-hp hot rod

There are mid-cycle product updates, and then there's the 2017 MKZ. Instead of just a nip-and-tuck styling refresh, the entry-level Lincoln gets an all-new engine with a whopping 400 horsepower and an optional torque-vectoring rear differential. And that powerplant is exclusive to the Lincoln, at least for the time being. It's a sign that Ford is getting serious about elevating its luxury brand above the recent history of rebadged Blue Oval models. The engine is a 3.0-liter twin-turbo V6, based on the current 2.7-liter that serves across the Ford and Lincoln lineup. With 400 horsepower and 400 pound-feet of torque, it's the most powerful Lincoln ever. That big number will only be available in all-wheel-drive versions of the MKZ. With front-wheel drive the engine will be detuned to an estimated 350 horsepower to retain some level of driving refinement. A further option on the AWD model will be the Driver's Pack, which adds the same torque-vectoring rear differential as on the forthcoming Focus RS. With the promise of rear-wheel-drive handling characteristics, the MKZ could be the most fun-to-drive Lincoln ever. In addition to the V6, a 245-horsepower, 2.0-liter turbo four and a hybrid model will be available. When the 2017 model goes on sale next spring it will be the first Lincoln in showrooms with the new signature grille, first previewed in the Continental Concept at this year's New York Auto Show. Adaptive LED headlights are available options, and a Lincoln logo "welcome mat" projects down from the side mirrors when unlocking the car at night. The view from behind is nearly unchanged, with a revised bumper giving the car a slightly wider appearance. Inside things are all new as well, with a completely revised center console. The capacitive-touch sliding controls are gone, replaced by buttons and knobs. In the press release, Lincoln mentions that engineers gave special attention to the sounds and feel of the switches, but the switches on the pre-production model at our product briefing felt cheap and loose. The large climate control knob clicked like it was grinding sand. We hope the production version will show more refinement. The good news, if you're rooting for Lincoln, is that the rest of the interior is impressive, at least in the top-of-the-line Black Label trim we saw. The front seats are comfortable, and the center console is trimmed in real aluminum.