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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.

Autoblog Podcast #416

Episode #416 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Brandon Turkus talk about the 2016 Mazda MX-5 Miata, seeing the 2016 Nissan Maxima in the company's Super Bowl ad, and GMC's potential plans for a Jeep Wrangler fighter. Of course, the podcast starts with what's in the garage and finishes up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #416 Topics 2016 Mazda MX-5 Miata first drive 2016 Nissan Maxima previewed in Super Bowl ad GMC mulling Jeep Wrangler fighter In The Autoblog Garage 2015 Hyundai Genesis 5.0L V8 2015 Honda CR-V Long-Term 2015 Volkswagen GTI Hosts: Dan Roth, Steven Ewing, Brandon Turkus Runtime: 01:36:43 Rundown Intro and Garage - 00:00 Maxima – 30:48 Miata – 41:46 GMC/Wrangler – 59:14 Q&A - 01:11:13 Get The Podcast UStream – Listen live on Mondays at 10 PM Eastern at UStream iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show in iTunes Podcasts GMC Honda Hyundai Jeep Mazda Nissan Volkswagen vw gti nissan maxima

2018 GMC Canyon Denali isn't worth the money

In the GMC lineup, Denali is the top dog. It's the trim with all the bells and whistles, and often provides an experience comparable to Cadillac. Unfortunately that's not the case in the GMC Canyon Denali we drove recently. In the Canyon's case, the Denali trim isn't worth the price premium because it isn't luxurious enough and doesn't distinguish itself from the midlevel SLT trim. While the outside maintains the Denali look with a unique chrome grille, chrome door handles, 20-inch wheels, and big Denali badges (which a guy at a car wash immediately noticed when this editor drove past), the interior and feature set don't rise to meet the borderline Cadillac image of Denali. All GMC did to spruce up the already drab, gray, plasticky interior of the Canyon was give it black leather, some real aluminum trim, some fake wood trim, and stitched soft-touch surfaces. The aluminum and leather are nice touches, but they don't look much different from the black and aluminum-look plastic in lower trim models. The fake wood also looks really fake. They're also exactly the same upgrades as what you'll find in an SLT. But the SLT offers a dark brown color scheme as an option, which would help alleviate the dinginess, and the SLT, equipped exactly like a base Denali, costs $2,690 less at $41,575. The same issue comes up with equipment. The Denali has heated seats and steering wheel, navigation, automatic climate and navigation, but so does the SLT. The big problem here is that Denali is supposed to indicate the best, most luxurious vehicle GMC has to offer, but there's not enough differentiation — or specialness, even — to separate it from a well-optioned SLT. GMC needs to give the Denali something more. It needs some real wood trim, or perhaps some interior schemes with contrasting materials you can't find in other Canyons. It should have some other special luxury features included that can't be added to lower trim GMCs such as a heads-up display, automatic windshield wipers, push-button keyless entry and starting, things like that. The real reason to buy the Canyon Denali is really to get the prestige that the Denali badge brings, rather than the specific equipment it has — the Denali name has some value, after all. But if you can look past the badge and focus on practicality, the SLT is the runaway winner, offering the exact same experience for a notably lower price.