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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.

VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

2015 Volkswagen GTI: Introduction [w/video]

If you've ever met me, listened to me on the podcast, or come to know me through my writing during the last five years at Autoblog, the following phrase should not surprise you: I freaking love the Volkswagen GTI. I've long said that the GTI is the perfect daily driver for the everyday enthusiast – a car that offers as much practicality as it does performance, served up in a semi-premium, attractive package. I've preached the GTI's story to anyone who would listen, and I've managed to convince several people to actually go out and buy one (those folks later telling me they're super happy with their cars, by the way). As for this new, seventh-generation GTI, I'll offer a little backstory. In 2013, Volkswagen flew me to Germany to attend the Frankfurt Motor Show, where I also got to drive a number of the company's products, including the CrossBlue crossover concept. While waiting for my turn to pilot the CrossBlue in an airport hangar, one of the German PR folks directed my attention to a white, four-door GTI sitting outside, and said I was free to have my way with it for, oh, 20 minutes... on an empty runway... in the rain. This was my first experience with the new GTI, in a fairly loaded spec, with all the performance goodies. Needless to say, I loved it. But my other big belief about the GTI is that this car is truly perfect in its base form. The sixth-generation car was a blast without any dynamic controls or performance whats-its, and while those things certainly help make this new hot Golf a more enthusiastic package than ever, in my eyes, they aren't completely necessary. That's why, when it came time to order a long-term car, I took control of the options. The end result is the carbon steel gray GTI you see here, in four-door S (base) spec, with a six-speed manual transmission. Yes, I did outfit our car with the only two options available to S shoppers (aside from the $1,495 performance pack) – the $995 lighting package and $695 driver assistance pack – but other than that, it's a no-nonsense hot hatch. No sunroof. No leather. No fully power-adjustable seats. No navigation. No dual-zone climate control. No automatic headlights. No upgraded audio. The bottom line is that our long-term GTI comes in with an as-tested price of $27,895, including the $820 destination charge. That's right: a $28,000 GTI. What our car does have is everything you'd want in a GTI.