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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.

The 2021 Cadillac Escalade's triple curved OLED screens are gorgeous

The centerpiece and crown jewel of the 2021 Cadillac Escalade is the triple OLED screen setup facing the passengers. It’s an imposing cowl with 38 inches of screen real estate in total, and itÂ’s a Cadillac Escalade-exclusive piece of technology. An interesting and unique feature like this has the potential to set Cadillac apart from the stiff competition in the luxury space.  Its appearance is just like that of the Cadillac Escala concept. We donÂ’t often get to see interior concepts carried into production, so thatÂ’s exciting on its own. The layout consists of a 16.9-inch touchscreen infotainment system, a 14.2-inch instrument cluster and a 7.2-inch touchscreen to the left of the cluster. All of the screens are curved and use OLED technology, which is commonly used on the screen of your Android phone, iPhone or TV. It allows for the deepest blacks, best contrast ratios and extremely vivid colors. In short, an OLED screen is going to look better than an LCD screen, and thatÂ’s why Cadillac is using it. We sat down with a few folks who could tell us more about it. Phil Kucera, Cadillac interior design manager, gave us some background on the decision to implement this tri-screen layout. “To be honest with you, it was a high-end leadership decision,” Kucera says. “There was a lot of, 'Hey maybe we donÂ’t put that on the base level. And why do you have to use OLED?' Because OLED is not the cheap way to go. So the fact that it stayed that size and remained OLED Â… I would bet that youÂ’re going to see other people doing something like this. There was a real push to try and get here first.” Sounds like the screen could have ultimately been a victim of cost-cutting measures. WeÂ’re glad it made it into production, because it looks promising. Sameer Gupta, GM's engineer manager responsible for infotainment, walked us through the new digital landscape. If you didnÂ’t like the old Cadillac software from before, youÂ’ll be happy to learn that this system is a completely new user interface, sharing nothing with any software before. Gupta told us that this is “a complete first-of use of this interface.” “When we started doing the system, we envisioned a system that had rich graphics, but was also simple and adaptive,” Gupta told us. After spending some time poking around in an Escalade, we can report that the new menus are full of rich graphics, pleasing animations and snappy transitions.

Canada opens probe into 250,000 GM pickups, SUVs over brake performance

Transport Canada, the auto safety regulator, has opened a probe into braking issues in nearly 250,000 General Motors full-size pickups and SUVs after U.S. officials launched a similar probe last year, the agency said on its website. The U.S. National Highway Traffic Safety Administration (NHTSA) in November into 2.73 million U.S. 2014-2016 model year SUVs and pickups after receiving 487 reports of hard brake pedal effort accompanied by extended stopping distance that were attributed to deterioration of the engine-driven brake assist vacuum pump. Transport Canada's probe covers 249,700 2015 through 2017 model year vehicles including the Cadillac Escalade, Chevrolet Suburban, Chevrolet Tahoe and GMC Yukon as well as 2014-2017 Chevrolet Silverado LD and GMC Sierra LD vehicles. The U.S. agency said it had reports of nine incidents of vehicles incurring damage as a result of colliding with another vehicle or fixed object at low speeds and reports of two injuries. NHTSA said if the pump fails to operate, the amount of brake power assist can be significantly reduced, extending vehicle stopping distance. The NHTSA sent GM an information request in a Feb. 7 letter. A GM spokesman said he had no update on the investigation. Reporting by David Shepardson; editing by Jonathan Oatis