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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.

Cadillac's 4.2-liter Blackwing V8 to die with the CT6?

Cadillac's 4.2-liter twin-turbo Blackwing V8 debuted only last year, popping up in the CT6 V-Sport — now the CT6-V — with 550 horsepower and 627 pound-feet of torque. The engine's been stymied in every attempt to power a different Cadillac model since then. Its only two use cases have been a first and second run of the original, limited-edition super sedan and the CT6 Platinum V8 trim at a slightly detuned 500 hp and 553 lb-ft. Motor Trend cites "a highly placed source at GM" as saying that the Blackwing won't go into the coming high-performance version of the CT5-V nor in the next-gen Escalade. Left without options, there's a chance the Blackwing will die with the CT6, itself a sedan with its grille on the executioner's block just waiting for the bite of an ax that might or might not shortly fall. Cost-cutting has been tagged as the reason for this misfortune; Cadillac's sales malaise and lack of clarity as to how to turn sales around led GM to downsize the brand's allowance. The parent company chose to build the new CT5 on the Alpha platform used for the erstwhile ATS and CTS instead of the Omega platform underpinning the CT6. Along with that choice, the MT report says expense reasons nixed fitting the Blacking V8. We know the lower-tier V series CT5 will work with a twin-turbo 3.0-liter V6 making 355 hp and 400 lb-ft. When we heard spy video of the upper-tier V series CT5 out testing, the engine sounded like the 6.2-liter supercharged V8 that would be a carryover from the last model.  The XT6, also rumored to get some V sauce, simply can't fit the V8. Instead of sitting on the Omega platform as once planned, the XT6 rides on the C1XX architecture under other GM products like the Buick Enclave and Chevrolet Traverse. The C1XX engine bay doesn't have room for a stouter V6, much less a hi-po V8. The next-gen Escalade ruled itself out due to price issues in back, not in front. MT writes that the independent rear suspension supporting GM's next-gen full-sized SUV quartet has burned through cash in development, putting engineers a few direct deposits short of the funds needed to massage Blackwing installation. Earlier this year at least one report said the twin-turbo DOHC V8 could serve the top-spec next-gen Escalade. More recent reports of a performance-heavy next-gen Escalade have predicted the 6.2-liter supercharged LT4 V8 from the Chevrolet Camaro ZL1 and Corvette Z06.

Cadillac CT4 and CT5 get meaningful updates for 2021

It's common for vehicles to get an update here or there in between full redesigns every five or six years, but the changes being made for the 2021 Cadillac CT4 and CT5, each just introduced last year, represent more than just a little nip and tuck. For starters, Cadillac's excellent Super Cruise will show up on the options sheets for the two sedans early next year in Enhanced form with with Lane Change on Demand functionality. Super Cruise will be offered on Premium Luxury and V-Series trims only. As we already knew thanks to early order guides, a new 12-inch digital instrument cluster that features driver-selectable themes is also on the menu for 2021. A traditional Tour theme is probably what most drivers will default to, while a Sport theme will likely include red accents and performance-monitoring readouts and a Stealth theme will offer minimal information and what we'd guess are non-distracting colors. CT4-V and CT5-V models will get an exclusive Track theme. New for the CT5 Sport trim level is a V Performance package that adds upgraded suspension bits, Magnetic Ride Control and a mechanical limited-slip differential. V Performance front brake calipers from Brembo are also optional on Sport models. Additionally, a new Diamond Sky special edition package will be offered on Premium Luxury CT4 and CT5 models, adding interior and exterior styling upgrades along with all-season run-flat tires on unique wheels. The package also gets the aforementioned V Performance brakes. Additional updates include wireless Apple CarPlay and Android Auto, SiriusXM with 360L with more than 200 live SiriusXM channels and on-demand programming choices, and a console-mounted rotary infotainment knob that enables left and right clicks to more easily navigate the CUE infotainment system. Buckle to Drive will come enabled from the factory (it can be disabled after purchase) and won't allow the driver to shift into drive unless the seatbelt is buckled. A Teen Driver mode will encourage safe driving from — you guessed it — teens. Forward collision alert, front pedestrian braking, automatic emergency braking and the patented haptic Safety Alert Seat are now standard equipment across the board for both sedans. Check out the image gallery above to see many of the updates, including Super Cruise, the digital instrument cluster and the Diamond Sky edition. Related Video: