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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 recalling 524k vehicles over hood latches and toe link nuts

Just hours after confirming to Autoblog its intention to recall 97,540 vehicles in the US (117,651 in North America) for a possible manufacturing defect in the chassis control module of several models, General Motors is issuing two more campaigns that affect another 379,401 units in the US (524,384 in North America).
One campaign covers 290,107 US examples of the 2010-2015 Cadillac SRX and the 2011-2012 Saab 9-4X because the "rear toe link adjuster lock nuts" may be improperly torqued. If not up to spec, the toe adjuster link could separate and allow the wheel to shift while driving, making the handling unstable. GM says that it knows of three crashes and two injuries as a result of this problem. Dealers are inspecting the nuts and installing a new link assembly, if necessary. Autoblog first reported about this potential issue when it showed up on a list of recalls from Transport Canada.
The second recall is for 89,294 examples of the 2013-2015 Chevrolet Spark in the US manufactured from January 17, 2012, through July 29, 2014. According to GM, "corrosion can cause the secondary hood latch striker to stick in the open position." If this happens, and the primary latch also isn't engaged for some reason, the hood could fly open while driving. About 13,000 of these affected Sparks are at dealers and are being held until repaired. The fix requires replacing the hood striker. GM isn't aware of crashes, injuries or fatalities caused by this problem.

2019 Cadillac Escalade ESV Drivers' Notes Review | Old, but not antiquated

When the Cadillac Escalade debuted 20 years ago, car-based crossovers were just getting their start. The Escalade was and still is basically a Chevy Tahoe with new styling and a nicer interior. That's especially true today, as our test car has an interior that looks like it was lifted straight from a Cadillac CTS rather than a Chevy Silverado. Crossovers may be more comfortable and fuel efficient, but they can't hold a candle to towing and payload capabilities of a body-on-frame SUV. If you need to haul seven people and a full-size Airstream in quiet comfort, few options are better than the Escalade. This week, our tester was a long-wheelbase Escalade ESV. That means substantially more room both behind the third row and with the seats folded. The Premium Luxury trim sits in the middle of the lineup, but it still comes with a lot of goodies. Features include a Bose audio system, a digital instrument cluster, a heads-up display, heated and cooled leather seats, a heated steering wheel, tri-zone climate control, Magnetic Ride Control and a stout 6.2-liter V8. Options include upgraded leather for $2,000 and polished 22-inch wheels for $600. All in, this Escalade was just shy of $100,000. Editor-in-Chief Greg Migliore: The Escalade is arguably Cadillac's best vehicle. It's a bold, body-on-frame SUV that feels decadently all-American. The Escalade is still contemporary even though it's been years since the ute has had a major redesign. I enjoyed a couple nights in this luxury bruiser. The V8 is powerful, and the 10-speed is a smart improvement. The command seating position is always welcome for me. The interior is nicely laid out, and the materials all look and feel upscale. Not a huge fan of Cadillac's touchscreen (no longer officially called CUE), but it seems to be getting better or I'm getting used to it. Love the Escalade's exterior design. It's dramatic, imposing and gives Cadillac something that's a true style-leader. All that being said, I'll be interested to see how Caddy iterates the Escalade. The Lincoln Navigator is an excellent product and a worthy adversary. Cadillac would be wise to keep its SUV flagship fresh. Senior Editor, Green, John Beltz Snyder: I was not excited to get into the Escalade. This is really not my cup of tea. I used to love the Chevy Suburban, but that fondness has languished as my tastes evolved as these huge vehicles have modernized, losing the charm that drew me to them when I was younger.