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Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.

Nissan posts $6.2 billion annual loss and unveils plan to cut costs

TOKYO — Nissan outlined a new plan on Thursday to become a smaller, more cost-efficient carmaker after the coronavirus pandemic exacerbated a slide in profitability that culminated in its first annual loss in 11 years. Under a new four-year plan, the Japanese manufacturer will slash its production capacity and model range by about a fifth to help cut 300 billion yen from fixed costs. It will shut plants in Spain and Indonesia, leave the South Korean market and pull its Datsun brand from Russia as part of a strategy unveiled on Wednesday to share production globally with its partners Renault and Mitsubishi. "I will make every effort to return Nissan to a growth path," Nissan Chief Executive Makoto Uchida said, adding that the company had learned from its past mistakes of chasing global market share at all costs. "We must admit failures and take corrective actions," he said, adding that starting with top-level managers, the company had to break its inward-looking culture which in the past has stymied efforts to deepen cooperation with France's Renault. Uchida said improving the company's cash flow was its biggest challenge. He reiterated that Nissan's cash liquidity was good even though it had negative free cash flow of 641 billion yen in the year ended in March. Nissan declined to give any forecasts for its current financial year which started in April due to the uncertainty created by the coronavirus pandemic. It also declined to give details on how many jobs it was cutting. In what is Nissan's second recovery plan in less than a year, Uchida pledged a return to profitability with a core operating profit margin above 5% and a sustainable global market share of 6%. Nissan posted an annual operating loss of 40.5 billion yen for the year to March 31, its worst performance since 2008/09. Its operating profit margin was -0.4%. The automaker said on Thursday that it sold 4.9 million vehicles last year, up from an earlier estimate of 4.8 million. That was still the second decline in a row and a fall of 11% from the previous period but meant Nissan clung on to its position as Japan's second biggest carmaker, just ahead of Honda and a long way behind Toyota. Pandemic pressure Even before the spread of the novel coronavirus, Nissan's slumping profits had forced it to row back on an aggressive expansion plan pursued by ousted leader Carlos Ghosn. The pandemic has only piled on the urgency to downsize.

Nissan Skyline Nismo gets a more powerful Z engine

Recent rumors claim the Nissan Skyline will morph into an electric crossover in the coming years. Regardless of whether or not they're true, the company isn't done with the current, gasoline-powered Skyline yet and it launched a limited-edition, Nismo-branded model in Japan. If you're experiencing deja vu, it's likely because the Nissan Skyline is sold as the Infiniti Q50 in the United States. We even get a range-topping, performance-oriented trim level, the 400-horsepower Red Sport 400. The Skyline Nismo goes further, though, by adopting an evolution of the twin-turbocharged, 3.0-liter V6 that powers the Red Sport 400 and the Z coupe. It's rated at 414 horsepower and 404 pound-feet of torque. For context, the Q50 and Z pack 400-horsepower and just 350 pound-feet of torque. The Nismo's engine spins just the rear wheels via a seven-speed automatic transmission, whereas America's Red Sport 400 is available with all-wheel drive. Nissan didn't settle for adding a few horses to the cavalry, slapping a couple of "Nismo" emblems to the body, and calling it a job well done. Its engineers redesigned the Skyline's suspension system, installed fade-resistant brake pads and recalibrated the various vehicle control systems, including the ABS, to deliver a sportier driving experience on and off the track. The brand even went as far as securing the windshield and the rear window with a type of adhesive normally reserved for the GT-R Nismo to improve rigidity without adding weight.  Visual updates are part of the Nismo package as well, including 19-inch Enkei wheels wrapped by tires that are wider than the ones worn by the regular-production model, an old-school "GT" emblem on each fender, and a body kit that includes a front splitter and side skirts. These updates aren't just for show: Nissan notes the redesigned grille opening helps channel additional cooling air to the radiator and the oil cooler. The Nismo treatment also permeates the cabin. The front passengers sit on Recaro sport seats with red inserts, while the driver faces a steering wheel with a red 12-o'clock mark as well as a new-look tachometer with a red ring and a small "Nismo" logo below the needle. Enthusiasts who want an even rarer version of the current-generation Skyline can try their luck at scoring the Nismo Limited.