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Average transaction prices climb to a record $36,270 in January

The automotive sector made a hash of the numbers last month, a mess of pluses and minuses clogging the transaction-price charts according to Kelley Blue Book. The overall industry rose one percent, even though buyers bought fewer cars and light vehicles in January 2018 vs 2017 using the selling-day adjusted rate. Due to January transaction prices rising to $36,270, a record for January, the value of new vehicles sold climbed more than $1 billion compared to January 2017. KBB's transaction prices don't include customer incentives, which changes the complexion slightly; average incentive spending rose to just over ten percent. The average transaction price in December 2017 was $36,756, so January dropped a bit - nothing unexpected, with the month annually blamed for "January doldrums." More revealing is the fact that the average transaction price in January 2017 was $34,910. This year's plumped-up figure came courtesy of the continued shift to crossovers, SUVs, and light trucks, which shouldn't surprise anyone who's read an automotive blog in the past 20 years. That category comprised nearly 70 percent of new vehicle sales for the month. Some manufacturers profited more than others, though. Fiat Chrysler managed 12.8 percent fewer sales in January compared year-on-year, but the company's vehicles sold for $1,300 more. The Ford brand suffered a 6.3-percent dip in sales, but brand transaction prices increased $2,000, while a Lincoln sold for $8,700 more on average. General Motors sold more cars and sold them for more money; overall GM transaction prices rose four percent, or $1,270, while a GMC traded hands for seven-percent more than in January 2017 and a Cadillac got $2,300 more on average. Of KBB's listed automakers, the Volkswagen Group got the most of out its customers, transaction prices rising at the German automaker by 5.6 percent to $42,243 in January 2018 compared to a year earlier. American Honda followed with a 4.3-percent increase to $28,991, GM in third at 4.1 percent to $40,313. Find your next car at Autoblog using our new and used car listings or the Car Finder tool. Broken out by segment, minivans rocked the table, transaction prices leaping by 7.9 percent to $35,380 compared to January a year earlier. Luxury cars boasted the next-highest rise, at 3.6 percent to $58,533.

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

2017 GMC Acadia adds four-cylinder and All Terrain model

General Motors has officially started the process of updating its long-in-the-tooth fullsize CUVs by unveiling the second-generation GMC Acadia at the 2016 Detroit Auto Show. While the Acadia is 700 pounds lighter, it's also shorter and narrower, which means it's not quite the people mover it used to be. You'll no longer be able to haul eight passengers, although there will still be five-, six-, and seven-passenger offerings. While families might not be thrilled with the loss of a seat, the lighter weight is a net win. Not only will the V6 model feel more powerful and efficient – in addition to the lower curb weight, there's a new, 310-horsepower engine – but it will also likely be more economical. GM estimates the front-drive V6 will return 25 miles per gallon on the freeway, compared to 24 mpg for the current front driver, but city fuel economy remains pegged at 17 mpg. In a move we're not entirely sold on, though, the Acadia will also adopt a four-cylinder engine, and no, it's not GM's highly regarded 2.0-liter turbo. Instead, you'll be able to order this 4,000-pound CUV with a 2.5-liter, 194-horsepower four-cylinder. What it won't be able to provide in straight-line speed, it will make up for with fuel economy. GM is wagering the front-drive, four-cylinder Acadia will net 22 mpg in the city and 28 on the highway. Both engines are paired with a HydraMatic 6T75 six-speed automatic. A new All Terrain model is said to be optimized for wet, snowy and icy conditions, and its drive mode selector removes the Off Road selection in favor of All Terrain. We have live images of both the new Acadia Denali, as well as the new-for-2017 All Terrain model, direct from the floor of the 2016 Detroit Auto Show. There's also a video of the full GMC press conference with reactions from our editors. Check them out. GMC Introduces All-New 2017 Acadia * 700-lb. lighter, more efficient crossover aimed at heart of midsize segment * Expanded range of available active safety features, including Front Pedestrian Braking and Surround Vision Camera * New powertrains include a 2.5L I-4, offering a GM-est. 28 mpg hwy, and an available est. 310-hp 3.6L V-6 * Acadia Denali with new, exclusive Continuously Variable Ride Control * New Acadia All Terrain with an advanced AWD system with Active Twin Clutch * On sale this spring DETROIT, Tuesday, Jan.