Officials from the United States and South Korea held a special session in Washington on Wednesday as part of U.S. Trade Representative Robert Lighthizer’s request to consider amending the two countries’ trade agreement. The joint talks serve to reassess the countries’ five-year pact, with the Trump administration aiming to diminish America’s growing trade deficit with South Korea.

One of the largest issues concerns the automotive industry. Korean rules stipulate a cap on the number of vehicles U.S. automakers can bring into the country each year that adhere to the country of origin’s safety standards. Presently, that quota sits at 25,000 vehicles per manufacturer. However, no U.S. company has ever made full use of the quota. General Motors, which is the most popular U.S. brand in South Korea, only sold 13,150 domestically built units in 2016.  Read More >

In many ways, September 2017’s auto sales bucked the trend. After the industry combined for decreased volume, year-over-year, in each of 2017’s first eight months, auto sales in September rose 6 percent. Meanwhile, the shrinking car sector that tumbled 12 percent through the first two-thirds of 2017 was down only 3 percent in September.

There were two big reason the passenger car decline wasn’t worse: America’s two best-selling cars.

Excluding the Honda Civic and Toyota Camry, U.S. car sales fell 6 percent. But as the clear-out of remaining 2017 Honda Accords got underway and produced 10-percent growth, the launch of the 2018 Toyota Camry generated a 13-percent uptick. Meanwhile, the Honda Civic’s 26-percent surge allowed the compact Honda to expand its lead over the midsize Camry in the race to end 2017 as America’s best-selling car. Read More >

Yesterday, we mentioned how Tesla was behind schedule with its everyman Model 3 — delivering only 220 units to the half-million reservation holders since the start of production in late July. While we knew it would get off to a slow start, CEO Elon Musk previously assured the public that production would increase exponentially through the end of the year by way of a “production hell” trial by fire.

Musk claimed there should be “zero concern” about Tesla achieving a production rate of 10,000 cars a week before the end of next year. But many wondered if that was even possible. Despite Tesla making serious strides to increase production volume this year, we remained dubious that the proposed numbers were even feasible for a fledgeling automaker.

As it turns out, they weren’t — and the company knew it.  Read More >

September 2017 sales at Fiat Chrysler Automobiles decreased on a year-over-year basis for a 14th consecutive month, extending a stretch of declines that began in August of last year.

For much of that time span, the U.S. automobile industry was reporting declining sales, as well. And for much of that time span, even as total U.S. auto sales kept on sliding, SUV/crossover sales were rising. For much of that time span, Jeep sales were falling.

Technically, officially, Jeep sales kept on falling in September 2017, the U.S. auto industry’s first month of improved sales this year.

But if you’d just ignore the Jeep Patriot for a moment, we can look at a clearer picture. Read More >

In September, for the first time in 2017, auto sales were higher this year than last.

Substantially higher.

Compared with September 2016, auto sales in America last month were 6 percent higher, far healthier than the modest sub-1-percent uptick analysts predicted. Booming pickup truck volume, big gains from America’s best-selling SUVs and cars, continued growth from trend-bucking Subaru, and rebounds at Volkswagen resulted in an industry that reported 1.5 million total sales, nearly 90,000 more than in September 2016.

The seasonally adjusted annualized rate shot up to 18.6 million, the best SAAR since July 2005, according to Automotive News. Over the last half-decade, Americans have averaged fewer than 1.3 million September new vehicle acquisitions. Last month’s result was 18 percent better than the September average.

Sunshine and roses? An end to the U.S. auto industry’s gradual slide? A sign of a perfectly healthy market? We have four reasons you should be skeptical. Read More >

After much speculation, Ford CEO Jim Hackett has finally outlined where his company’s dollars will be spent in the foreseeable future. Hackett spent his summer performing what Ford called a “four-month deep dive” into the company’s strategy and business operations to see what changes needed to be made. His conclusions? This may surprise a few readers, but Ford will continue building and selling automobiles.

Alright, that isn’t a bombshell, but the brand is trying to frame itself as the Ford you’ve always trusted while also letting everyone know it’s still a “mobility company” with its eyes fixed on tomorrow. Without the public relations veneer, that plan translates into a reduced number of production models and trims, more money for electrification R&D, less for internal combustion engines, and a significant reduction in material costs.

Hackett’s address also served to reassure the nervous shareholders who ousted his predecessor, Mark Fields. Ford’s stock declined more than 30 percent during Fields’ tenure and many complained that his vision of transitioning from a traditional automaker to a Silicon Valley look-alike was partly to blame. Hackett did everything in his power to ease those fears.

“We’re going to be in the vehicle business moving both people and goods. Some myth about not being in the car business is gone,” Hackett told Wall Street. Read More >

Subaru reported in September 2017 the brand’s 70th consecutive month of year-over-year growth. The growth rate is not modest. Five years ago, Subaru had never reported more than 336,000 U.S. sales in a calendar year. Yet with one-fourth of 2017 remaining, Subaru has already reported 478,848 U.S. sales in 2017 and is on track to sell more than 650,000 vehicles by the end of the year.

Subaru is not, however, without challenges. The rate of sales improvement has not been matched by a commensurate improvement in the dealer network’s ability to service vehicles, for example.

Another issue? Subaru needs to create space for production of its next new vehicle, the three-row Ascent SUV, in Lafayette, Indiana. Subaru already builds its best seller, the Outback, in Indiana, and with the latest generation of the Impreza, the brand’s compact car joined the midsize Legacy as an Indiana-built model, as well.

For the Ascent, which Subaru confirmed is set to begin rolling out of the Indiana plant in the second-quarter of 2018, Subaru has received the necessary permits to increase production by 66 percent compared with the original joint Toyota/Subaru facility.  Read More >

Yesterday, Steph Willems penned a little Question of the Day about the manual transmission. In it, he asked what would have to occur to get you, the buying public, back into the manual transmission in a large-scale way.

As of this writing, it’s blowing up the comment counts as everyone lists the particulars of how they hem and haw over the manual transmission. Shifting a vehicle yourself is romanticized and desirable; a bygone art to be treasured and maintained for future generations of drivers.

Except when it isn’t. What would force you from a manual transmission vehicle for the rest of your days?

Read More >

U.S. auto sales exceeded analyst expectations with a big 6 percent year-over-year increase to 1.5 million units in September 2017, the first monthly improvement in 2017 so far.

After auto sales fell 3 percent during the first two-thirds of 2017, big September increases from Toyota Motor Corp., General Motors, Ford Motor Company, American Honda, Nissan’s trio of brands, and numerous smaller outfits brought the sales pace achieved through the first three-quarters of 2017 within sight of 2016’s record rate. By the end of September, U.S. auto sales are down by less than 2 percent compared with last year.

Pickup trucks played a major role in September’s improvements, growing at twice the rate of the industry at large. The Honda Civic expanded its lead as America’s best-selling car on a quest to end the Toyota Camry’s 15-year run. Minivan sales plunged to barely more than 33,000 units. The Toyota RAV4 topped 42,000 sales for a second consecutive month, leading a booming SUV/crossover class. Read More >

Did you hear the news? Every automaker worth its salt will switch to electrified, fully autonomous vehicles yesterday.

Bored yet? Very likely so, but the people laying out money for cars still have a say in what vehicles automakers produce, and for high-end buyers, prestige doesn’t necessarily come wrapped in the latest technology from the pages of Wired. Big-money buyers want big power and, while that increasingly means the latest in twin-turbocharged, downsized wonderengines, it isn’t always so.

Audi can’t wait to challenge Mercedes-Benz, BMW, and Jaguar in the premium electric car race, but there’s no way its customers would agree to the disappearance of a proper eight-cylinder gasoline engine, claims the brand’s technical development chief. Read More >

September 2017 sales of pickup trucks rose to the highest level so far this year in the United States, jumping 12 percent to 257,864 units.

Prior to this point, truck sales had grown by less than 4 percent, year-over-year, averaging slightly more than 225,000 monthly units.

September’s big gain was fuelled almost entirely by improvements among the full-size pickup trucks that own 84 percent of America’s pickup truck market. And America’s full-size pickup truck gains were powered in large part by America’s best-selling line of vehicles: the Ford F-Series. Read More >

Hyundai’s Genesis Motors offshoot intends to finalize its transition into an entirely separate U.S. dealer network within the next three years.

The process of building an undetermined number of distinct Genesis outlets has not yet begun, but it’s clear the brand is well aware of the limitations with which it’s currently operating.

“The reality is, many, many luxury customers tell us they love our products, they’re amazing, but I’m not going into a Hyundai store to buy it,” U.S. Genesis boss Erwin Raphael tells Automotive News.

No kidding. Read More >

Every Sunday or Monday, a very generous man appears in my driveway with a new car. The same man, in not as generous a fashion, also removes a car from my driveway. The most recent exchange involved the arrival of a fourth-generation 2018 Kia Rio and the departure of the 2018 Mercedes-Benz E400 4Matic Coupe we reviewed last week.

“Chilly one today, eh?” I say.

“I’m preparing myself for some cold days in PEI this winter,” Mr. Sowerby says with a chuckle. We chat for a moment about a recent Chevrolet Traverse event that was slathered across my Twitter feed, and as Garry gets into the Mercedes-Benz to depart he says, “You’re getting a Mazda CX-3 with a six-speed stick next week.”

Huh? It can’t be. Seriously?

For real. Read More >

From a historical midsize perspective, the all-new 2018 Honda Accord is rather thrifty with the Earth’s decreasing supply of oil.

It’s fuel efficient, in other words. Over the span of 10,000 highway miles, the basic 2018 Honda Accord is expected to consume 263 gallons of regular octane gasoline. That’s only 13 more gallons than you’ll consume in a 2018 Honda Civic Hatchback with the same 1.5-liter turbocharged four-cylinder. It’s 15 fewer gallons than you’d have used in the most efficient non-hybrid 2017 Honda Accord.

The city improvement is more meaningful. The 2017 Honda Accord four-cylinder topped out at 27 mpg in the city, equal to $944 for 10,000 miles at the current fuel price of $2.55/gallon. The new 30-mpg Accord reduces city consumption in the same scenario to $850, a 10-percent decrease.

The 2018 Honda Accord is not, however, the most fuel-efficient car in America’s midsize sedan category. Honda thought it would be. Honda was wrong. Read More >

What does an automaker do after the company’s three-year-old midsize sedan — the only midsize sedan with standard all-wheel drive — is slightly upgraded for 2018?

It initiates a new marketing campaign. And what must that marketing campaign entail when the car is chronically unpopular and suffering from sharp sales declines in a shrinking category? It must utilize a catchy, attention-grabbing slogan.

Thus, for 2018, Subaru gives us the rebirth of a tagline: sport utility sedan.

Only this time, unlike 1998, the Legacy SUS isn’t lifted, it doesn’t wear two-tone cladding, its tires’ lettering won’t be emboldened by white font. The 2018 Subaru Legacy Sport Utility Sedan is just a Legacy. Read More >