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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 teases two new V-Series prototypes at the Detroit Grand Prix

We told you earlier this week that there would be more to come from Cadillac's V-Series of performance vehicles following the introduction of the brand's CT4-V and CT5-V performance sedans. We just didn't expect it to come quite so soon. Cadillac surprised attendees of the 2019 Detroit Grand Prix as two new prototypes took to the track for what we figure must have been demonstration laps in between other official race events. A CT4-based machine wearing funky blue camouflage joined a red-hued CT5-based prototype on the track, with driving duties split between Mark Reuss, president of General Motors, and Ken Morris, vice president of Product. Cadillac CT4 V-Series prototype View 3 Photos Exactly what's powering these prototypes is still a mystery, but we have our suspicions that these two beasts are putting down a lot more power than the 320-horsepower CT4-V and 355-hp CT5-V that underwhelmed enthusiasts earlier this week. We wouldn't be surprised if there was a version of Cadillac's twin-turbo Blackwing V8 engine under the hood of this V-badged CT5 prototype. Cadillac is being coy with further details, saying only that these two vehicles "represent the next step in Cadillac's V-Series performance legacy." So we'll just have to wait for now. But in the meantime, feel free to peruse the images above and speculate in the comments below.

Junkyard Gem: 1981 Cadillac Eldorado with V8-6-4 engine

Skyrocketing fuel prices caused by geopolitical events in 1973 and 1979 led to gas lines, federal fuel economy requirements, and an increasing reluctance on the part of American car shoppers to buy big, thirsty Detroit luxury machines. General Motors had pulled off some amazing technological feats in the past — the small-block Chevrolet V8 engine and Hydramatic transmission being two extraordinarily successful ones — and so Cadillac's bosses figured that a combination of computer wizardry and clever mechanical engineering would give the 368-cubic-inch Cadillac V8 a cylinder-deactivation system and resulting superior fuel economy. Here's a very rare example of one of those 1981 Cadillacs, found in a California self-service wrecking yard. The idea behind the V8-6-4 was that computer-controlled solenoids would physically disengage the rocker arms for one or two cylinders on each engine bank under low-load conditions, converting the engine from a 368-cube V8 to a 276ci V6 or 184ci V4 (that's 6.0, 4.5 or 3.0 liters, respectively, for the metric-system aficionados among us). This sort of variable-displacement magic is commonplace today, but it was science-fiction stuff in 1981. An "MPG Sentinel" display on the dash would let the driver know how many cylinders were active at the moment, and the car would get Chevy Citation fuel economy with Cadillac luxury. The V8-6-4 was the standard engine in all 1981 Cadillacs (except for the Seville, which had the troubled Oldsmobile diesel engine as the base powerplant and the V8-6-4 as an option). Unfortunately, the V8-6-4 worked about as well as the Oldsmobile diesel: very poorly. Within a few years, most owners of these engines had disconnected the rocker-deactivation solenoids and just drove their cars as regular full-time V8s. This one has the snazzy "Cabriolet Roof Treatment" option, which boasted "textured elk grain" vinyl and could be had in one of 17 available colors. Front-wheel drive gave the early-1980s Eldorado plenty of interior space, despite its more proletarian Olds Toronado origins, and these velour-covered seats made for very comfortable road trips. The price tag started at $17,550, or about $51,650 in 2019 dollars. The 1981 Imperial went for $18,311, and that car was based on the same platform as the lowly Plymouth Volare. Meanwhile, A BMW 733i cost $28,945 and a new Toyota Cressida a mere $11,599. The 1981 Cadillacs were just a little too much ahead of their time, it turned out.