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Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Acura replaces chief Accavitti with designer Ikeda

Acura is shaking up its senior leadership, as Honda ushers the current chief of its luxury division out the door and replaces him with a new one. Exiting stage left is Mike Accavitti, who held the reins at the premium automaker as its senior vice president and general manager of the Acura division. Taking his place will be Jon Ikeda, one of the Japanese automaker's most senior designers. Accavitti (pictured above at left) had been promoted to the job from his previous position as senior vice president of auto operations after Honda separated the Acura brand into its own division. He had previously served as a senior executive at Chrysler, rising up the ranks to run the Dodge brand, and joined Honda in 2011 as its chief marketing officer. At this point it remains unclear why Accavitti is leaving and where he might land, but Honda says he's leaving the company altogether. To replace Accavitti, Honda has named Jon Ikeda (pictured above at right), a veteran designer with the company. A graduate of the Art Center College of Design in Pasadena, CA, Ikeda has worked for Honda on both sides of the Pacific since 1989. He previous headed up the design and product planning divisions at Honda's American R&D operations, and was instrumental in creating an independent design office for the Acura brand, separate from Honda's. This isn't the first time we've seen Accavitti replaced in his role as a senior executive by a design veteran. After only four months at CEO of the Dodge brand, he was replaced by Ralph Gilles, who retained his role as senior vice president of design for the entire Chrysler group in parallel. Gilles was ultimately replaced as head of Dodge as well, but was recently promoted to serve as head of design for Fiat Chrysler Automobiles. Related Video: Acura Announces Leadership Changes TORRANCE, Calif. July 27, 2015 – Acura today announced that Jon Ikeda has been promoted to Vice President and General Manager of the Acura Division of American Honda Motor Co., Inc. In this role, Ikeda will oversee all Acura brand activities including sales, marketing and parts and service. Ikeda was formerly Division Director of Auto Design at Honda R&D Americas, Inc. (HRA). He began his career at Honda in Japan in 1989, joining the advanced design studio in Tokyo, where he worked on the award-winning Honda FSX show car. After six years in Japan, he returned to Los Angeles in 1995, to continue his career at Honda R&D in Torrance, California.

Carmakers, NHTSA to unveil auto-emergency braking agreement tomorrow

Happy St. Patrick's Day Eve. Tomorrow, there will be green beer, corned beef and cabbage, and automatic emergency braking for all. Weird combo, we know. But on St. Patty's we can expect an official announcement from a pact of automakers making auto-braking systems standard equipment by 2022. That's per a report from Reuters, which cites three sources familiar with the plans. Originally announced in September 2015 by 10 automakers and the National Highway Traffic Safety Administration, the agreement is expected to be even larger when the details are unveiled tomorrow. According to Reuters, the manufacturers of 99 percent of the US domestic market's vehicles will be represented by the new agreement. It's believed that standard AEB systems could prevent thousands of accidents across the country. Expect more on the official announcement when it's made. Related Video: