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Weekly Recap: The implications of strong new car sales

New car sales are on a roll in the United States this year, and analysts are optimistic the industry will maintain its torrid pace. Sales increased 1.6 percent in May and reached an eye-popping seasonally-adjusted selling rate of 17.8 million, the strongest pace since July 2005, according TrueCar research. That positions the industry for one of its strongest years ever, as consumer confidence, low interest rates, low fuel costs, and an influx of new products propel gains. In addition to the positive economic factors, May also featured warmer weather across much of the US, an extra weekend, and it came on the heels of relatively weak April sales. Analysts suggest income tax refunds and the promise of summer driving and vacations also traditionally help May sales. "While 2015 will be one of the best years in the history of the US industry, in some ways it may be the very best ever," IHS Automotive analyst Tom Libby wrote in a commentary. "Not only are new vehicle registration volumes approaching the record levels of the early 2000s, but now registrations and production capacity are much more closely aligned so the industry is much more healthy." Capacity, an indicator of the auto sector's health, is also expected to grow. Morgan Stanley predicts it will eventually hit at least 20 million units per year, as many companies, including General Motors, Ford, Tesla, and Volvo are investing in new or upgraded factories. "The best predictor of US auto sales is the growth in capacity, and frankly, we're losing count of all of the additions – there's literally something new and big every week," Morgan Stanley said in a research note. Transaction prices, another telling indicator, also continue to show strength. They rose four percent in May to $32,452 per vehicle, and incentives dropped $10 per vehicle to $2,661, TrueCar said. "New vehicle sector and segment preference indicates consumers are confident about the economy and their finances," TrueCar president John Krafcik said in a statement. Still, Morgan Stanley noted the robust sales did little to immediately impact automaker stock prices and suggested it might be a prime time to sell if sales reach the 18-million pace. "Perhaps the biggest reason may be that investors have seen this movie before," the firm wrote.

2016 Chevy Malibu exhaustively tested with four decades of data

Chevy is preparing to unveil its new Malibu sedan at the upcoming New York Auto Show next month. But when it does, it's not like it will have appeared overnight. The development of any new vehicle – especially one as widely produced by a major automaker as the Malibu – involves rigorous and relentlessly punishing tests. In the Malibu's case, that meant 1.5 million miles of driving from the scorching heat of Arizona in July to the frigid cold of northern Canada in January and everything in between. The Bowtie brand also says it incorporated four decades' worth of data taken from vehicles driving in locations around the world since 1972 in order to make the Malibu the best it could be. We'll have to wait to find out the results of all that exhaustive testing, but you can catch a sneak peek at the new sedan in the video above. Four Decades of Data Used to Test 2016 Chevrolet Malibu Recorded customer use drives durability testing for next-generation midsize sedan 2015-03-11 DETROIT – Data collected over decades from across the globe is helping ensure the 2016 Chevrolet Malibu can handle the world's worst roads even if the all-new midsize sedan never drives on them. Data collection boxes are placed in cars in real-world driving conditions around the world. Since 1972, these devices have accurately recorded the harshness and frequency of every jounce, bump and shudder inflicted on the car on roads in the U.S., Russia, Saudi Arabia and developing markets. "Although most Malibu owners will never put their car through similar abuse, we test all new vehicles in extreme climates, inclement weather and on punishing road surfaces," said Dan Devine, Malibu validation engineer. "The 2016 Malibu is definitely up to these challenges." Tests like these ensured the current generation Malibu was dependable and durable, two qualities that in turn helped Malibu stand out from its rivals in important quality surveys, such as J.D. Power's Initial Quality Study and Vehicle Dependability Study. General Motors engineers analyze the data to calculate the precise amount of damage potholes and other hazards create over 150,000 miles. Then the conditions are replicated at GM's Milford Proving Ground in Michigan on three unique road courses, each riddled with simulated potholes of increasing severity. Engineers run preproduction cars through the course up to hundreds of times.

CES 2022 was huge for EVs | Autoblog Podcast #711

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder. CES took place this week, and there were some nice electric surprises from automakers, especially General Motors. John has been driving the Ram 1500 Power Wagon, as well as what seems to be its polar opposite, the electric Mini Cooper SE. Greg talks about the differences between the Acura TLX A-Spec long-termer (which is back in the shop) and the Type S loaner that's filling in for it. John's also got some interesting thoughts on leather interiors. Finally, the editors reach into the mailbag and help a repeat customer decide on a suitable replacement for a 2008 Lexus GX 470 in this week's Spend My Money segment. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #711 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown CES 2022 2024 Chevy Silverado EV revealed: 664 hp — and Midgate's back 2024 Chevy Silverado EV vs. 2022 Ford F-150 Lightning | How do they compare? Chevy Equinox EV and Blazer EV confirmed for production in 2023 Chrysler Airflow concept previews the brand's all-electric future Mercedes-Benz Vision EQXX shoots for 620-mile range Cadillac InnerSpace reimagines the personal luxury coupe What we're driving: 2022 Ram 1500 Power Wagon 2021 Acura TLX A-Spec and Type S long-termers 2022 Mini Cooper SE John's unpopular opinion: Let's do away with leather for good Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related Video: