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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.

Hotter Cadillac CT4-V prototype spied testing at GM's Proving Grounds

Cadillac already teased us once with the hotter CT4-V and CT5-V at the Belle Isle Grand Prix, but these photos are still the best look yet at what's next for the Cadillac V-Series. The car we're looking at in heavy camouflage here is a high-performance CT4, but we don't really have a name to call it at this point. Cadillac hasn't said, so it could be anything. We'll just refer to it as the faster V, as it's certainly looking a bit more racy than the warmed-over CT4-V already revealed. While the styling isn't drastically different from the CT4-V already out there, the front intake and openings look deeper and more aggressive. The middle, raised section of the hood is a little taller and the whole front-end design looks a lot like the one teased in Belle Isle. This vehicle even appears to have the same mirror design as the faster V. The side sills, quad exhaust tips and wide rear tires lend this prototype an aggressive look, but we did note that it doesn't have the big ducktail spoiler we saw teased previously. Maybe Cadillac is trying to keep a low profile while testing. A keen eye will notice a wild apparatus attached to the front, which would serve as a great jousting pole if you were into that kind of thing. We don't know exactly when Cadillac plans to introduce the faster V machines, but we wouldn't doubt if it happened before the year was out. The ATS-V and CTS-V didn't look wholly different than the pedestrian versions of those cars, and this prototype indicates Caddy may follow a similar pattern this time around. All will be explained from GM soon, but for now, we wait.

2021 Cadillac CT4 Review | A joy to drive, a puzzle to compare

Cadillac's smallest sedan is arguably its most competitive. The question is, though, what does the 2021 Cadillac CT4 actually compete with? It has the price tag and interior in keeping with the growing number of sub-compact luxury sedans, yet its rear-drive layout and sophisticated chassis are more akin to sedans that are a size up. It sure drives more like a BMW 3 Series than something smaller and cheaper. Actually, it could easily be argued that the CT4 is a more rewarding sport sedan than BMW's benchmark – be it the Premium Luxury you see above or spicier CT4-V trim.  That's where the comparison ends, however. The CT4 is smaller, with a cramped back seat and rinky-dink trunk. Its cabin quality is lower and its engines less refined. Yet, it is sufficiently cheaper to justify all of the above. For the dwindling few who still prize communicative steering and an unflappable suspension in their entry-level luxury sedan, the CT4 is a terrific choice – no matter what you compare it to. What's new for 2021? The CT4 was all-new last year, so there are only minor updates for '21. A 12-inch HD instrument cluster is now available as part of the Technology package in top trim levels, while Cadillac's Super Cruise semi-autonomous driver assist system will be a late-availability option. Wirelessly connected Apple CarPlay and Android Auto are now standard. There's also a new Diamond Sky Special Edition that adds a unique color scheme and trim finishes.  What's the CT4 interior and in-car technology like? We've criticized the design and quality of other Cadillac interiors, and although the CT4's is awfully similar to those, its lower price and market positioning make it far more competitive and, well, palatable. It may not be as expressive as the Mercedes A- or CLA-classes, but for the money, we don't think you'll be disappointed. The infotainment system is controlled by an 8-inch touchscreen with a pair of redundant control knobs better suited to scrolling through playlists, radio stations or other menu functions. One is adjacent to the screen and volume knob, while the bigger one is on the center console. We like this setup quite a bit and appreciate the Cadillac's system's clean look and quick responses. The base setup includes wirelessly connected Android Auto and Apple CarPlay, plus Amazon Alexa integration and a choice of USB Type-A and Type-C charging.