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Lincoln Aviator returns, VW ponders pickups, and Subaru Forester endures

NEW YORK – Volkswagen is taking a hard look at a pickup truck, the Lincoln Aviator is back, and you love old Subarus (we'll explain). The New York Auto Show returned last week with flair and a wide range of promising reveals. Let's break down some of the big news, plus a few things you might have missed. News: Ford is fortifying Lincoln with the Aviator SUV Views: Doing a mid-size SUV is obvious. Calling it the Aviator wasn't. I like it. Using Navigator design cues, this thing looks the part and should give Lincoln some energy and sales volume. Not playing in the midsize SUV segment has been a mistake for Ford's luxury brand, and the Aviator should fill a much-needed hole. Props to Lincoln for dusting off the Aviator name, most recently used on a rebadged Ford Explorer built in 2003-2005. It sounds classy and historic, like something from 1930s, even though it only dates to the tail end of the " Friends" era. Speaking of names, when the MKC gets a new one, Lincoln should dust off Zephyr, a moniker it actually used in the '30s and then briefly in the early 2000s. Why use the Aviator name? Jim Farley, Ford's president of global markets, said it's about reminding consumers that Ford has traditionally built strong SUVs. "I think in a way the legacy is falling in love with what we do best," he said. "We wanted to go back to our roots. We know how to do this well." Farley also said the Aviator could prove to be Lincoln's bestseller. The Aviator was well-received in New York, earning our Best in Show award and garnering cautiously optimistic reactions from some analysts. "Lincoln ran this experiment once before ... differences in the market conditions, stronger differentiation and appetite for utility vehicles may prove a different story for this Aviator," IHS analyst Stephanie Brinley said. View 19 Photos News: VW surprised the car world with the Atlas Tanoak pickup concept Views: Good move. VW should build this. The concept is based on a longer version of the Atlas platform and would take aim at the midsize truck segment. VW is using this prototype to "gauge the reactions" of automotive influencers, but make no mistake, the Tanoak is totally doable. Using Atlas bones and mechanicals punched up with rugged styling and some soft-road capability, the Tanoak would grow VW's portfolio in a smart way. The Atlas Cross Sport concept, also revealed in New York, signals that Atlas expansion is already underway.

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.

Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.