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A few signs that Cadillac's revival is taking hold

Only a flatworm would not have predicted the Cadillac ATS would help increase sales for America's erstwhile luxury brand of record; however, even the best automotive oracles didn't realize by how much: The ATS fueled a 49-percent increase of the brand's year-on-year sales in March, the sixth straight month of growth for Cadillac. The momentum helped push General Motors to post a 6.4-increase in sales in March versus 2012, leading its domestic competitors.
Dealership salesmen are among the first to register the shift occurring at Cadillac. A Texas dealer related an incident in which he helped a mother affix a baby seat in a car for a test drive, explaining that as opposed to the older buyers that are still a Cadillac mainstay he's getting "a pretty diverse group that's coming through the door now" who are "younger and better educated." Aided by incentives on the ATS, Cadillac's sales are up 38 percent so far this year, overtaking Acura as the fourth best selling luxury brand, and GM stock is benefiting with incremental gains because of it. Based on early response, the new 2014 Cadillac CTS should keep things going in the same direction.
The trend at the Wreath and Crest is part of a larger sales trend happening among domestics - with other models like the Dodge Dart and Ford Fusion doing well - and overall US car sales. Head over to Bloomberg for the big picture and role the ATS plays in it.

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.

Combine a self-driving car with V2V, and here's what happens

Transportation engineers have started laying the groundwork for a traffic world in which cars communicate with other cars and infrastructure like bridges and traffic lights. How about an environment in which cars talk to pretty much everything and everyone? In a preview of its offerings at the upcoming Consumer Electronics Show, Delphi Automotive will deploy just such a concept. Engineers have designed a system that communicates with traffic signals, street signs, pedestrians, cyclists, even to fry pits and parking garages along a driver's route. To date, engineers and researchers across the auto industry have focused on the technical and safety-oriented foundation of future vehicle-to-vehicle communications, which could help cars share information about everything from traffic tie-ups to upcoming road hazards. Beyond those building blocks, many have projected that V2V could also include more consumer-focused features. Delphi's system, dubbed V2Everything, might be the first that combines those sorts of features in a tangible package. At CES in Las Vegas, scheduled to begin the first week of January, company officials say they'll demonstrate in real-world conditions how V2V technology can be used in an autonomous vehicle to provide a range of critical safety information and leisure and convenience options for riders. The first V2V technology installed on a production car is slated to appear on the 2017 Cadillac CTS. "We imagine a world with zero traffic accidents," said Jeff Owens, Delphi's chief technology officer. "To get there, we will need a convergence of active safety, sensor fusion, connectivity platforms and advanced software." Such software might allow a vehicle to start searching for and reserving parking spots at a programmed destination long before arriving. It could allow riders to place their McDonald's drive-through order from the road and have the food ready for pickup along the route. For the drive itself, the Delphi-equipped car can stay updated on the status of traffic lights around Las Vegas, and can anticipate yellow and red lights. Using smart-phone technology, the car can detect pedestrians and cyclists that may otherwise be hard to see. It can send messages to friends or family to notify them of a driver's location. Some of those features have been available on third-party apps or individually developed by automakers. But this system marries them together in a single system that is tailored for use in self-driving cars.