1979 Cadillac Eldorado Biarritz on 2040-cars

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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.

Question of the Day: Worst year of the Malaise Era?

The Malaise Era for cars in the United States spanned the 1973 through 1983 model years, and featured such abominations as a Corvette with just 205 horsepower (from the optional engine!) and MGBs with suspensions jacked way up to meet new headlight-height requirements. There were many low points throughout this gloomy period, of course. The horrifyingly low power and fuel-economy numbers for big V8s during the middle years of the Malaise Era make a strong case for 1974 or 1975— the years of Nixon's resignation and the Fall of Saigon, respectively— as the most Malaisey years. But then the GM-pummeling debacles of the Chevy Citation and Cadillac Cimarron could make an early-1980s year the low point. 1979, the year of the ignominious Chrysler bailout? You choose! Related Video:

Why does this Cadillac fob seem to be for a mid-engine roadster?

Is GM bringing back its Caddied-up Corvette sibling, the Cadillac XLR — only this time based on the mid-engine Corvette? That's the question posed by photos of a wedge-shaped Cadillac key fob someone provided to The Drive. The buttons show a trunk — and also a frunk. So, mid-engine, unless the fob goes with an EV that has its motors and other electrical bits scattered to the wheels and elsewhere. Also, there's a button to operate a droptop. And the car profile on the fob is Corvette-like. All of which makes for some pretty great speculation. Except that Cadillac's way back from the failures of its sedan-centric lineup was thought to be through SUVs such as the new XT4 compact crossover, the XT5 and the somewhere-in-testing three-row XT6. Plus, the XLR, which was produced between 2003 and 2009, hit its sales peak in 2005 of just 3,730 cars, or about one-tenth the sales volume of the Corvette. So it's hard to imagine there's a vast untapped market out there for the luxury roadster — plus the XLR's demographic of well-to-do grandpas is dying off, or at least thinks it is. So a resurrected XLR would seem to be an unlikely savior. A lot's happening with GM's luxury brand — the debut of the XT4 at long last, a new boss, a thinning of the sedan herd but expansion of the V's, a backtrack to Detroit after its New York sojourn, the cash-cow Escalade under direct assault from the fine new Lincoln Navigator, and the impressive performance of its Super Cruise technology. But an XLR? So what is this fob's story? The Drive speculates it's a universal test fob and the buttons don't necessarily mean a thing, or that somebody stuck a Caddy emblem on it just to yank our chains. Who's to say. What would you like it to mean? Related Video: