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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.

2018 Lincoln Navigator First Drive | From black sheep to flagship

This is Lincoln's flagship. It's the most luxurious, comfortable and expensive vehicle the brand sells. It's quite obviously the biggest and heck, like every Lincoln flagship of yesteryear, it even features body-on-frame construction. Crucially, though, this all-new 2018 Lincoln Navigator is also very good. It's distinctive, capable, and competent in ways that will stand up well in the upper echelon of the SUV hierarchy. And we'll get this out of the way now: it's far superior to its primary competitor, the Cadillac Escalade. And yet, the Navigator's flagship status is a comeback story. It wasn't too long ago that it was a black sheep confined to the distant back row of Lincoln family promotional photos along with the Town Car and a fichus added for decoration. It was never given one of the new-fangled MK names, and its V8-powered, truck-based status made it a thirsty dinosaur at a time of rising gas prices and an increasing number of crossovers. Livery services bought them in black-painted droves, but it was otherwise forgotten even as a substantive refresh for 2015 arguably made it a better, more practical bet than its Caddy nemesis. Like its predecessor, and indeed every Navigator since the second generation dawned for 2007, the third-generation 2018 model features an independent rear suspension rather than the live axle in GM's SUVs. First and foremost, this reaps benefits for those sitting in the third row. Full-sized adults enjoy an abundance of room back there on par (or perhaps even better) than a minivan. There's a USB port on each side, the seatbacks power recline and its three seat belts allow for an eight-passenger max. There's even enough room behind the raised third-row for creatively stacked suitcases. Compare this to a regular-wheelbase Escalade with its third row stuck to the sky-high floor; its occupants' knees jammed against the second row and/or stuck into their own chins. It's a wasteland back there, but to be fair, not much worse than an Infiniti QX80 or Lexus LX 570. Yes, the extended-wheelbase Escalade ESV helps, but there's still less space than the standard Navigator. In fact, the Navigator L model offers the exact same third-row – only the cargo area behind it expands. That rear suspension also pays dividends in the ride and handling department.

Lincoln recycling tree fibers into new MKX armrest

Want to hug a tree, or at least a really small part of one. Then set your arm down on one of those armrests in the 2014 Lincoln MKX crossover. The US automaker is working with Weyerhaeuser and Johnson Controls on a tree-based, cellulose-reinforced polypropylene material used in the component that connects the armrest to the floor console, Wards Auto says. With properties similar to plastic, the tree-based material replaces fiberglass and is about six percent lighter. No big deal for now, but if the material starts getting used for things like battery trays and interior storage covers, that loss in weight may eventually start adding up enough to boost fuel economy a bit, providing a green double bonus. Lincoln parent Ford, which isn't saying how much more (or less?) it costs to use the new material, established its Biomaterials and Plastics Research team in 2001. In 2007, the company began using soy-based foam in car seats used for models such as the Lincoln Navigator and Ford Mustang and has since broadened biomaterials use to components like floormats and cupholder inserts. Ford also used recycled plastic bottles from the 2012 North America International Auto Show for seats in the Focus Electric.