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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.

2016 Tech of the Year | Autoblog Minute

Deliberation on the winners of Autoblog's Tech of the Year Award is under way. Nominees for best car in 2016 are: the Tesla Model S, the Chevy Volt and the BMW 7 series. Nominees for best tech in 2016 are: Apple CarPlay, Android Auto, VW's MiB II with AppConnect, Ford Sync 3, Audi Virtual Cockpit, the Smart Cross Connect App, and Volvo Sensus. Autoblog's Chris McGraw reports on this edition of Autoblog Minute. Audi BMW Chevrolet Ford smart Tesla Volvo Technology of the Year Autoblog Minute Videos Original Video volt android auto ford sync 3

A Chevy Camaro hybrid? That's what EcoCAR3 could bring

Figuring out a way for a hybrid powertrain to co-exist with the performance expectations of a classic American muscle car is a challenge that could vex that most experienced of automotive engineers. It's a challenge, in fact, being handed to a bunch of college students. Over the next four years, students from 16 North American colleges and universities will attempt to wring fuel efficiency from a 2016 Chevy Camaro as part of EcoCAR3, an advanced-vehicle technology competition sponsored by the Department of Energy, General Motors and others. They'll be attempting to use hybrid or plug-in hybrid technology while not sacrificing the performance of the Camaro, which was selected in part because the current model achieves just 17 miles per gallon in city driving and 28 MPGs on the highway, per EPA numbers. Students will get the latest version of the vehicle to work on, one that is expected to be unveiled next month on Belle Isle in Detroit. "If we still want to produce V8 Camaros, we're going to have to look at alternative methods of propulsion," said Al Oppenheiser, the chief engineer on the Camaro. "So the ideas that these college teams come up with could very easily be adapted to a car like the Camaro." Unlike similar competitions that reward fuel efficiency in vehicles, EcoCAR seeks those gains while emphasizing cost and consumer acceptance of these vehicles. The cars shouldn't look like experiments; they should look like everyday vehicles on the road. Previous competitions have allowed the teams to use whatever powertrain they desired. This time, EcoCAR officials designed the competition to concentrate on hybrid, hybrid-electric and diesel options. Competitors won't have the option of using hydrogen fuel cells as they have in the past. Last year, a team from Colorado State built a vehicle that contained both hydrogen and electric power sources. This year's limit is a curious choice, as some automakers such as Toyota have placed heavy bets on fuel cells in recent years. General Motors also runs a fuel-cell program. With the focus on cost and practicality, however, the program officials wanted to narrow the framework of the contest. "We always have some good decisions on what to make within the scope or out of scope," said Jim Kolhoff, global director of software engineering for General Motors.