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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 Super Cruise, a hands-off review

Cadillac Super Cruise won't let you eat breakfast behind the wheel, climb in the back seat or any of the other stupid human tricks displayed on YouTube by Tesla owners. It even won't allow the car to change lanes on its own, like Tesla Autopilot. But it's a big step on the road to full autonomy, a huge convenience on long-distance road trips and a substantial technological triumph for Cadillac. In the simplest terms, Super Cruise is a lane-centering enhancement to adaptive cruise control (ACC). But Super Cruise is anything but simple. Its technical complexity — hence its long delay after first being unveiled five years ago — belies its straightforward operation and intuitive user interface, which I discovered on an almost 750-mile, 11-hour drive in a 2018 Cadillac CT6 between Dallas and Santa Fe to test the system. LOADS OF LIMITATIONS First, let's dispense with the details and disclaimers. Super Cruise is standard on the 2018 CT6 Platinum and a $5,000 option on other trim levels. Because Super Cruise is supported by OnStar — an OnStar operator will call to find out if first responders need to be sent in a worst-case scenario — a three-year OnStar Super Cruise Package is included with the system. Super Cruise has loads of limitations that are probably more concerning to GM's legal counsel than they were to me during my long drive. Some are no-brainers, such as not for use in construction zones or for driving on the shoulder. But the system can also be stymied by adverse weather, poor visibility and faded lane markings. Super Cruise only works on freeways with on and off ramps and a center divider. ACC and forward collision warning also need to be engaged, and the system's cameras and radar sensors can't be obstructed. To keep drivers from looking away from the road for too long — and to keep the system active — an infrared camera on top of the steering column keeps an electronic eye on the driver's seat. GM has over 100 patents alone on this Driver Attention System, including an algorithm that triangulates the nose, eyes and ears in case the camera can't see through sunglasses to make sure you're not nodding off. In addition to the car's visible sensors, another major component of the system is something you don't see: mapping software. But not the kludgy kind that powers in-dash navigation systems.

Cadillac CT6 gets a plug in Shanghai, will come to US

Don't call it the third coming of the Chevy Volt. The unsurprising debut of the Cadillac CT6 PHEV in Shanghai today has a powertrain that sounds an awful lot like the one that can be found in the Volt and the Cadillac ELR. The plug-in CT6 – identical to the CT6 that debuted in New York earlier this month – has an 18.4-kWh lithium-ion battery (just like the 2016 Volt) and offers an all-electric range of around 37 miles. It also copies the "Regen on Demand" feature from the new Volt and the battery cells "use the latest generation cell chemistry found in other GM plug-in vehicles." But Cadillac President Johan de Nysschen doesn't see the two powertrains as similar in at least one important way. General Motors calls the Volt and the ELR "extended range electric vehicles" (EREV) but in a statement, de Nysschen says that the plug-in hybrid CT6 is, "an ideal platform for Cadillac to offer its first plug-in hybrid." That GM is using the PHEV terminology rather than EREV is going to be important to some, even if the practical difference is only semantic. And yes, we all understand the irony of de Nysschen – the same guy who has a history of speaking ill of plug-in cars – hyping them now. Back when he worked for Audi, he said the original Volt was too expensive for what it offered and was thus, a car for "idiots." Speaking in Shanghai today, de Nysschen said the new CT6 PHEV was, "an EV without any of the disadvantages or range constraints," according to Automotive News. If the batteries are similar to GM's other EREV/PHEV cars, the CT6 powertrain is at least different. The ELR uses a 1.4-liter engine, while the new Volt has a 1.5-liter four-cylinder mill. The CT6, on the other hand, has a 2.0-liter turbo four-cylinder engine with direct injection. There is also an "all-new rear wheel electric variable transmission (EVT) with exclusively designed motors," that will give the CT6 PHEV, "smooth, spirited acceleration." The EVT is a two-motor-unit that uses three planetary gears. Maximum overall system output is 335 horsepower and 432 pound-feet of torque. Perhaps most interesting for American audiences is the fact that GM's press release, available below, makes multiple references to US-market sales of the PHEV. Official details on the EV range and fuel economy will be made available closer to the car's US launch.