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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.

GM Super Cruise beats Tesla Autopilot again in latest hands-free test

DETROIT — General Motors' Super Cruise once again edged Tesla's Autopilot in an evaluation of 17 vehicles equipped with active driving assistance systems (ADAS) by Consumer Reports, the testing organization said on Wednesday. A Tesla Model Y fitted with Autopilot finished "a distant second," the group said, to a Cadillac CT6 equipped with Super Cruise, which GM is rolling out to more than 20 vehicles — including its new Hummer electric pickup truck — over the next three years. Safety and insurance researchers have frequently warned of the risks of consumers overestimating ADAS systems' abilities, a misconception increased by some automakers calling their products Autopilot, ProPilot or Co-Pilot. In 2018, the Cadillac CT6 with Super Cruise scored higher than a Tesla Model 3 with Autopilot, in a Consumer Reports test of just four vehicles equipped with ADAS. In the latest test, conducted this summer on a track and on public roads, the Cadillac scored 69 points out of a possible 100, while the Tesla scored 57. A Lincoln Corsair equipped with Ford's Co-Pilot 360 system, finished third with 52. The critical difference in the Super Cruise system is a driver-facing infrared camera to make sure he or she is paying attention to the road and is ready to take over manual control when necessary, said Kelly Funkhouser, head of connected and automated vehicle testing at Consumer Reports. The group noted that Autopilot can shut off abruptly in some situations, while Super Cruise did a better job of notifying the driver when the system is disengaging. In recent European safety testing, a Tesla Model 3 with Autopilot placed sixth out of 10 systems, getting high marks for performance and ability to respond to emergencies, but falling short on its ability to maintain a driverÂ’s focus on the road. Related Video: Green Cadillac GM Hummer Tesla Safety Technology Autonomous Vehicles Electric Super Cruise

J.D. Power customer survey of dealers counts Cadillac, Buick as big winners

Cadillac and Buick have taken the trophies in J.D. Power's latest Customer Service Index Study examining satisfaction with dealer service. Surveying more than 90,000 owners and lessees of 2009-2013 model-year cars, the study found that those with pre-paid maintenance packages were ten percent more likely to buy their next car from the same brand.
Dealer satisfaction scores have improved overall, Cadillac nabbed the luxury segment ahead of Audi and Lexus, taking the crown that Lexus held last year. Buick keeps the mass-market dealer satisfaction win in the family, finishing ahead of Volkswagen and last year's winner GMC. The study also found that service department use of tablets increased customer satisfaction, as did "best practices" like "providing helpful advice." Who knew?
You can find details on those and more findings in the press release below.