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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.

Miata is always the answer, but not always the best one

The Mazda MX-5 Miata is a surprisingly versatile car. Not only is it hilariously fun on back roads and closed courses, it can also be a decent daily driver thanks to its solid gas mileage and usable trunk. But, it doesn't excel in every driving situation. Specifically long trips at high speeds, and those involving canine companions. This weekend, I did a roughly 500-mile round trip to my parents' home in Indiana to pick up my recently adopted dog. The trip was 90-percent highways, and I heard every single mile. Our MX-5 Miata Club has the minimally insulated top also found on the base level trim, and at highway speeds the wind and road noise fills the cabin with a loud, steady roar. This likely won't be a problem for fans of white noise, and it can be overcome by the stereo. However, over a few hundred miles, it starts to get old. The suspension, while superb for carving corners, also gets tiresome. On rough Rust Belt highways, it would become a bit overwhelmed, and the whole car would shiver and shake. On the plus side, nothing squeaked, rattled, or fell off in these instances. There are a few other quirks that show up on long trips. The small pedal box and floor-mounted throttle means that there isn't a particularly comfortable place to rest your right foot when the cruise control is set. Neither the door nor the center console have much padding either, so leaning your knees against them for long periods of time isn't advisable. The good news is that the seat itself was surprisingly comfortable, and never once was I feeling any back pain. Plus, when not using the cruise control, the seating position is great, allowing me to stretch out and relax. When I picked up my four-legged compatriot (a 7-year-old mix of unknown breeds named Ruby, pictured above), things became a tad tight. Standing up, she thoroughly filled the passenger compartment. For reference, she's a little over 50 pounds and stands a little more than 2 feet tall. Much bigger dogs, like my family's coonhound and German shepherd mix, won't really fit. This also made her prone to nearly face-planting on the dashboard anytime the car slowed down. She eventually figured out that simply curling up on the seat bottom was the best choice, and then slept for most of the trip. So it worked out, but I think I may have found the limit of a Miata's dog capacity. Would any of this make me want a Miata less? Certainly not. That is if I had a second car.

2015 Mazda2 spotted in Japanese magazine

The styling changes at Mazda are proceeding at a fairly quick tempo. The CX-5 was unveiled, followed by a refreshed CX-9, the excellent Mazda6, and most recently a new Mazda3. This all happened over the course of less than two years, which in the auto industry is like a long week.
Now the Mazda2 is getting its revamp. Thanks to a magazine scan from Japan, we now have our first look at the new sub-compact, called the Demio, in its home market. Mazda's familial front end has been fitted, and it doesn't look quite as suited to the smaller car. Lacking the long-hood look of the Mazda3 and Mazda6, the new styling looks overly rounded, almost bulbous from our angle. It's still attractive, but the shape is kind of off-putting compared to the chiseled faces of the 2's big brothers. We'll concede that the folded magazine page may have something to do with it, however.
The next-generation 2 should adhere to Mazda's Skyactiv philosophy, which means we can expect a highly efficient four-cylinder engine, although it's impossible to say if Mazda will do away with its smallest offering's one-engine strategy. Considering the Mazda2 will be riding on a shortened version of the CX-5's platform, we'd expect some degree of mechanical parts sharing, regardless of how much the larger platform needs trimmed. Perhaps a detuned version of the 2.0-liter, Skyactiv four-cylinder could be under the 2's hood?