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U.S. new-vehicle sales in 2018 rise slightly to 17.27 million [UPDATE]

DETROIT — Sales of new vehicles in the U.S. rose slightly in 2018, defying predictions and highlighting a strong economy. Automakers reported an increase of 0.3 percent over a year ago to 17.27 million vehicles. The increase came despite rising interest rates, a volatile stock market, and rising car and truck prices that pushed some buyers out of the new-vehicle market. Industry analysts and automakers said strong economic fundamentals pushed up sales and should keep them near historic highs in 2019. "Economic conditions in the U.S. are favorable and should continue to be supportive of vehicle sales at or around their current run rate," Ford Chief Economist Emily Kolinski Morris said after the company and other automakers announced their sales numbers Thursday. That auto sales remain near the 2016 record of 17.55 million is a testimonial to the strength of the economy, said Mark Zandi, chief economist at Moody's Analytics. The job market, he said, has created new employment, and wage growth has accelerated. "That's fundamental to selling anything," he said. "If there are lots of jobs and people are getting bigger paychecks, they will buy more." The unemployment rate is 3.7 percent, a 49-year low. The economy is thought to have grown close to 3 percent last year, its best performance in more than a decade. Consumers, the main driver of the economy, are spending freely. The Federal Reserve raised its key interest rate four times in 2018 but is only expected to raise it twice this year. Auto sales also were helped by low gasoline prices and rising home values, Zandi said. It all means that people are likely to keep buying new vehicles this year even as they grow more expensive. The Edmunds.com auto-pricing site estimates that the average new vehicle price hit a record $35,957 in December, about 2 percent higher than the previous year. It will be harder for automakers to keep the sales pace above 17 million because they have been enticing buyers for several years now with low-interest financing and other incentives, Zandi said. He predicts more deals in the coming year as job growth slows and credit tightens for higher-risk buyers. Edmunds, which provides content, including automotive tips and reviews, for distribution by The Associated Press, predicts that sales will drop this year to 16.9 million.

Buick Encore blitzes first-year sales predictions

With its first full year of sales in the bag, it's safe to say that Buick has a hit on its hands with the Encore. US buyers have snatched up 31,046 of the small, premium crossovers since the Encore went on sale in January of 2013, while 97,311 were sold globally (not counting its counterparts from Opel and Vauxhall).
While we liked the Encore when we first drove it, we'll admit, we weren't sure how the tiny CUV would do. In fact, the first thing Executive Editor Chris Paukert wrote about the Encore was, "We admit it. We have no earthly idea how this whole thing is going to shake out." But it's done well, and has been subject to heavy demand over the past year, blowing away the estimates of analysts, who, according to an August story from Automotive News, projected no more than 18,500 units would be sold in 2013.
"Right out of the gate, demand for the Encore was high," Tony DiSalle, vice president of Buick marketing said in a statement. "It accounted for most of the segment's growth last year and that's because it offers the right safety, technology and features in the right-sized vehicle for many customers."

2016 Buick Cascada First Drive

Florida became a state in 1845. It is the third most populous state in the United States, home to the most-visited theme park in the world. It is where you'll find every convertible ever sold in the United States, be it a pasty white Infiniti M30 or a Lamborghini. And soon, many examples of the 2016 Buick Cascada will call it home. Florida is full of Buicks. Wonder if anyone bought a Rendezvous Ultra? It's in Florida. The Buick Reatta, the company's last convertible before this? Also there. Buick, however, is eager to get those who better remember Bush vs. Gore than Nixon vs. Kennedy to ask, "That's a Buick?" Which is how we arrive at the Cascada. The Cascada isn't so much a new Buick as a car that's new to Buick. It's been on sale for about three years as the Opel Cascada in Europe, along with badge-engineered siblings sold by Vauxhall and Holden in other parts of the world. Buick took that time to make several hundred changes to the Cascada for US consumption and then found it without many rivals. The Chrysler 200 convertible, Volkswagen Eos, and Volvo C70 would all be prime targets for the Cascada here, were they not all dead now. Buick's gamble is that these Chrysler, VW, and Volvo (also Saab, for that matter) customers are looking for somewhere to go next. The Cascada isn't so much a new Buick as a car that's new to Buick. One thing is certain: the Cascada is eye-catching to Floridians. I had no fewer than six people in Miami and Key West walk up to me and ask what kind of car it was, or even say, "That's that new Buick convertible, right?" Despite being three years old, the Cascada's looks have aged pretty well. And it's been spared many of the tacked-on details, like fake portholes and chrome wheels, that were adhered to the Regal when it made its trip over from Opel-land. Top up or down, the Cascada is attractive. Unlike the Audi A3 or BMW 2 Series convertibles (the former being the Buick's prime target), there's no abruptness to the design, no sharply ending lines. The Buick looks relaxed in a Palm Beach or Palm Springs way, even on the inside with the convincingly stitched dash top and standard heated leather seats (one of the pieces redesigned for the Buick). That being said, the pattern on the seat material is a misstep, looking like it was inspired by Aunt Flora's 1972 patio furniture. Then it's surprising that you don't exactly sink into the Cascada. While the seats are mounted low, they're not pillow soft.