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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.

Jay Leno welcomes a 2016 Cadillac CTS-V into the garage

After checking out a multitude of classic cars and customs over the past few weeks, Jay Leno switches things up with a modern performance machine in the latest video from the garage – a 2016 Cadillac CTS-V. Leno is curious about Caddy's attempt to challenge the BMW M5 and Mercedes-Benz E63 AMG S, and he takes a long, technical look at the sedan with chief engineer David Leone. Not content to just peek under the hood, Leno puts the CTS-V up on the rack to see what it packs underneath the svelte body. Once he gets the lowdown on the Caddy's engineering, it's time for a drive. Leno also flexes his interviewing skills while behind the wheel and gets even more info about the CTS-V's capabilities from Leone. He seems fairly impressed, but Leno's most entertaining question about the 640-horsepower sedan is whether it can do a burnout. He provides a definitive answer to that at the end of the clip. Related Video:

Cadillac ATS-V Coupe caught undisguised ahead of LA reveal

Vsport versions of the CTS and XTS sedans are all well and good, but what Cadillac enthusiasts have really been looking forward to is the arrival of the next full-on V model. And here we have it.
Spied in the nude during an apparent photo shoot ahead of its anticipated debut at the fast-approaching Los Angeles Auto Show, the upcoming new Cadillac ATS-V Coupe is set to pick up where the old CTS-V left off, only in a more compact form. Unlike previous spy shots of heavily disguised prototypes, this final version is showing a chrome-framed mesh grille, along with a deep lower air dam with what looks to be a carbon-fiber front splitter. That bulging hood with heat extractor vents is tipped to be packing a twin-turbo V6 engine, breathing out of quad exhaust tips.
The aggressive aero kit also encompasses side skirts, a reshaped rear bumper and a lip spoiler on the truck, while the upgraded rolling stock wears serious low-profile rubber and the brakes appear to be carbon-ceramic units. Peer through the window and you can even see the sport bucket seats with slots for racing harnesses. All of which suggests a serious American challenger to the BMW M4 and its ilk, and we're looking forward to seeing the vehicle in the metal in LA next month.