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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, Buick and Chevy decisions impacted by worries abroad

European Concerns Drive GM, But Beware Of The French Connection
GM's bid to rationalize Europe will impact the products that will be offered domestically.
It seems that Europe is defining the future of General Motors more so than its home North American market. Having axed Saturn, Pontiac and Hummer, GM has done a fairly good job of repositioning its remaining four divisions, Cadillac, Chevrolet, Buick and GMC. Cadillac carries the luxury banner. Chevrolet is aimed at the masses with cars and trucks along with a nod to performance thanks to Camaro and Corvette. Buick bridges the premium gap between Chevy and Cadillac, while GMC offers a hardcore work/upscale proposition.

Cadillac CT4 Luggage Test | How much fits in the trunk?

If you go by exterior specs, the Cadillac CT4 is more similar to a BMW 3 Series or Mercedes C-Class. However, if you go by interior space (or price), it's more like a Mercedes A-Class or BMW 2 Series Gran Coupe. That's definitely true of the trunk, which measures a rinky-dink 10.9 cubic feet, according to GM's specs. That number is what you'd expect in a small luxury coupe rather than a sedan. Indeed, the old ATS Coupe had 10.4 cubic feet.  Nevertheless, the CT4 is somehow not the smallest in the segment. That would be the A-Class and its 8.9-cubic-foot trunk. Good grief. Now, Mercedes has been known to shortchange its cargo capacity numbers so we'll have to luggage test that at some point to know for sure. Today, let's see if the CT4 is in keeping with that 10.9 number. Also, how much worse is it than the also rinky-dink CT5 trunk or the overly optimistic 2 Series Gran Coupe? Yep, that looks pretty small. Also, note the weird rail-like things that hampered the CT5 (below right) are also present here in the CT4 (below left). There's also a similar lip to clear for the folding back seat, but the CT4's opening seems bigger.  As in every luggage test I do, I use two midsize roller suitcases that would need to be checked in at the airport (26 inches long, 16 wide, 11 deep), two roll-aboard suitcases that just barely fit in the overhead (24L x 15W x 10D), and one smaller roll-aboard that fits easily (23L x 15W x 10D). I also include my wife's fancy overnight bag just to spruce things up a bit (21L x 12W x 12D). All but the biggest bag fit, which is exactly the same number that could fit in the CT5. As the below photo shows, the bigger car has just a bit more space left over. Maybe for a pair of grocery bags. That would be consistent with the difference in cubic feet: 11.9 cubic feet versus 10.9. What about the BMW 2 Series Gran Coupe? BMW says it has 15.1 cubic feet of space, but it doesn't. At least not using the same measurement criteria that the vast majority of other manufacturers use. It can carry the biggest bag, but it would still need to leave the fancy bag behind. That's also while utilizing the 2 GC's ample under-floor storage compartment.  As such, the CT4 does indeed have a small trunk, but it's at least in keeping with its competitors. The CT5 cannot say that, regardless of which segment you compare it to.  Unfortunately for the CT4, though, the story does not stop here.