2006 Chevrolet Tahoe Police Package on 2040-cars

Auto blog

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.

Submit your questions for Autoblog Podcast #316 LIVE!

We record Autoblog Podcast #316 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #316
2013 Detroit Auto Show

Leveling kit now available for Chevy Colorado, but not yet for GMC Canyon

In various bits of news this year concerning the Chevrolet Colorado and GMC Canyon pickups, we kept hearing about a front leveling kit. GM Authority found a few details in early order guides in January. In February, the kit came up in relation to the Canyon's AT4 Off-Road Performance Package, and again with AEV's upgraded Colorado Bison. After three months of waiting, GMA has more info. The kit eliminates the trucks' raked stance by raising the front by one inch, using an electro-coated upper spacer and a polyurethane lower spacer in order to maintain the proper suspension geometry. Installation is a bolt-on job with low-profile nuts, but the task will require a spring compressor. Fitted properly, the kit doesn't void GM's new vehicle warranty on the Colorado. Why do we only mention the Colorado? Because for some reason, the kit isn't available for the Canyon yet as a standalone component; the GMC stays raked without one of the aforementioned option packages. For Chevy, the leveling kit is compatible with any trim in four-wheel drive except the ZR2. It cannot be installed on two-wheel-drive trucks, nor any truck wearing wheels that are 20 inches or above. The kit is available now, ordered through any Chevy dealer for $150. There is a treat in store for GMC buyers, though, but it requires spending a lot more money. GM Authority discovered that the 2021 Yukon will offer the brand's first illuminated emblem. Priced at $475 as a dealer-installed option, a backlit glow will show off the GMC logo in the grille. The brand makes the logo in red and black, it's thought the red logo will get the nod, at least at first. Only the front logo earns the spotlight, not the one on the tailgate. GMA says the tchotchke will be available on all four trims when the new full-size crossover goes on sale in a few months.