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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.

GM seeks national mandate for zero-emissions cars

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.

2018 Buick Regal GS First Drive Review | More power, style and doors

During our test-drive of the 2018 Regal GS, Buick took us to Atlanta Motorsports Park and hired stunt drivers to teach us mild-mannered journalists how to do a J-turn. It's an emergency maneuver, also known as a Rockford, in which the car reverses at full speed, spins 180 degrees and takes off in the exact opposite direction from where it was headed. It symbolized perfectly Buick's hopes for the Regal GS, its most ambitious attempt yet at a bona fide American sports sedan. Buick is trying to shake off decades of stigma as a maker of grandpa-spec wafters. Since 2008, it has been rebadging the Opel Insignia, developed by GM's German subsidiary and built in Russelsheim, as the Regal. In 2012, Buick revived the Regal GS badge, providing power from a 2.0-liter turbo four, initially at 270 horsepower but then detuned to 259 hp in 2014 as AWD was introduced. Buick had high hopes of challenging the luxury greats, and while the previous Regal GS received good reviews as a genuine sports sedan, it never really caught on in the marketplace. Buick took a risk by redefining the brand, but ultimately, it wasn't quite successful enough to be uttered in the same breath as BMW, Mercedes-Benz and Lexus. The 2018 Regal GS doubles down on that lofty goal with a better-fleshed-out version of the outgoing car. It returns with improved styling and even more power, courtesy of a naturally aspirated 3.6-liter V6 generating 310 horsepower and 282 lb-ft of torque. In other words, the new GS is up 40 horses, but down 13 lb-ft with an engine that comes straight from the GM parts bin. Within GM, it is known as the "High Feature" engine, used in everything from Cadillacs to V6 Camaros to the GMC Acadia. Autoblog has knocked this engine on refinement but generally praised its power, so it's a mixed bag. On the Regal GS, though, the drivetrain exhibited a marked improvement on the refinement front. Buick spokesperson Stuart Fowle attributed this to the new nine-speed automatic it's mated to, a quick and smooth-shifting transmission well-programmed to keep the engine at optimal revs. The result deviates quite a bit from the Opel Insignia, which maxes out with a turbocharged 2.0-liter inline-four good for 197 horses and 300 lb-ft. With turbo 2.0-liter fours now the de facto entry-level engine for most luxury carmakers, having the 3.6-liter V6 makes the 2018 Regal GS more distinctive, a bit more American and less of a European copy-paste job than its predecessor.