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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.

Cadillac CT6 styling will be evolutionary, not like Elmiraj

Well, this is at least a little disappointing. It turns out Cadillac's long-awaited flagship, the CT6, won't be ushering in a wholesale change in the company's design. That's coming from GM Design guru Ed Welburn, meaning it should be taken as gospel (unless of course he's just trying to hoodwink us). "It'll be different and it will certainly stand out in the portfolio," Welburn told Automotive News. "But you won't see a real shift in direction." Instead, Art and Science will be shown in yet another new form, and will "continue to evolve," according to Welburn, although what that means is unclear. What we can say for certain, though, is that Art and Science on the CT6 will not evolve into the stunning Elmiraj Concept. "I think Elmiraj was more of an influence on some other things we're working on for Cadillac," Welburn said, we're guessing with a smirk and an air of mystery. Considering we have yet to see the CT6, it's hard to tell whether this will be good news or bad, although based on the critical reception to the Elmiraj, we're a little bit disappointed by Welburn's statements. Still, only time will tell whether the styling of the CT6 will really work out.

2015 Cadillac ATS Coupe

Cadillac has become a very, very different company since the dawn of the new millenium. Its turn-of-the-century lineup, consisting of staid offerings like the Seville, DeVille and Eldorado, represented the Old Cadillac. These cars were plagued with Old GM quality issues and catered to a more elderly audience. Since the company's Art and Science design language arrived, though, we've seen Cadillac flesh out its lineup in a big way, introducing notable and (so far) enduring products, like the the CTS, SRX and most recently, the ATS.
With the CTS tackling the 5 Series segment and the SRX duking it out with the Lexus RX and its classmates, the ATS has been left with the tough task of battling the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class, among others. Critically, at least, it has excelled in this role, but it's still working on finding its feet sales-wise. On paper, broadening the model range by adding a two-door personal luxury coupe could help.
After a week with the ATS Coupe, though, we've found a car that, while retaining the standard model's excellent driving character, doesn't quite offer enough visual excitement to stand up to other cars in its segment.