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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.

Train derailment leaves Jeep, GMC, Chevy pickups damaged in Nevada

An unfortunate train derailment is causing some inevitable delays for pickup truck customers west of Nevada. Yesterday morning, 33 train cars derailed in Lincoln County, and the cargo that was being transported consisted of new Jeep Gladiators and Wranglers along with Chevrolet Silverados and GMC Sierras, judging from the photos released by the Lincoln County Sheriff’s Office. The train derailment also caused the adjacent road to be closed, and local law enforcement recommends the area is to be avoided as long as it takes to clean it all up. In the photos, damaged Jeeps and other trucks sit either on their wheels or shiny-side-down as the incident is being assessed. Available information says there were thankfully no personal injuries, but itÂ’s not likely any of these trucks will end up in customer hands, even with a significant discount. Pre-registration transport damage, significant or not, has often resulted in scrapping complete vehicles so that manufacturers can steer clear of liability issues. Hooniverse.com, which also reported on the incident, notes a couple of interesting things. Firstly, the upended Gladiator seems to have a pretty sturdy support structure for its glasshouse, thanks to its new rollbars. Another matter is that the GM trucks, also pictured, wear discreet and temporary transport steel wheels instead of fancier items, perhaps to deter thieves eager to grab a shiny set from trucks on their way to the dealer. Still, itÂ’s a shame these vehicles could never fulfill their hauling purposes in the hands of new owners. Perhaps the manufacturers can at least use the damage for data-gathering purposes. Related Video:    

GMC Sierra Denali CarbonPro bed is finally, almost here

GMC revealed the Sierra 1500 with the optional CarbonPro bed on March 1, 2018. The bed wasn't available at launch, though. You can't buy it now, either, but it will hit dealerships with limited availability after production starts in early June, exclusively for the Denali 1500 and AT4 1500 trims. The carbon floor and sides replace the steel panels in a normal bed, providing "strength, durability, and scratch resistance" and a potential 59-pound weight saving, depending on the truck's configuration. To make sure the bed had a chance, development engineers replicated "extreme use scenarios" like dropping 1,800-pound gravel loads, 450-pound steel drums, and cinder blocks from various heights. They put a 250-pound man on a snowmobile with studded tracks, had him drive into the bed and then go wide-open throttle. We're told the result was "minimal scratching." On top of the extreme weather testing any vehicle goes through, the team also put a generator in the bed and aim the exhaust into a corner to ensure vibration and direct heat wouldn't deform the carbon fiber. Because of the finer shaping area-specific strength possible with carbon fiber, the bed provides one cubic foot of additional payload space by having its sidewalls pushed further out. The CarbonPro bed doesn't need a bedliner, and is grained at the top for better traction but smooth on the bottom for easier hosing down and dirt removal. Tie-downs at the front of the bed work with molded indentations to hold motorcycle tires, and slots in the sidewalls hold two-by-sixes. The truck maker says the carbon-lined payload area confers "best-in-class dent, scratch and corrosion resistance," but we suppose the nation's pickup truck army will prove that or not. The trucks likely won't have the hardest life at the start, since the Sierra Denali costs $56,790 before even a basic option like four-wheel drive. The real test probably won't come until around 2029, when third owners begin treating their aerospace-inspired thoroughbreds like dray horses.