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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 recalls nearly 1 million vehicles for airbag defect

WASHINGTON — General Motors said on Friday it will recall nearly 1 million sport utility vehicles in the United States because the driver's airbag inflator may explode during deployment. The recall covers 994,763 Buick Enclave, Chevrolet Traverse, and GMC Acadia vehicles from the 2014 through 2017 model years with modules produced by ARC Automotive Inc. Dealers will replace the driver's airbag module. The National Highway Traffic Safety Administration said a driver in Michigan of a 2017 Chevrolet Traverse was in a crash in which the front-driver airbag inflator ruptured during deployment causing facial injuries. An April 25 inspection confirmed that the front driver airbag inflator ruptured in the vehicle. The National Highway Traffic Safety Administration (NHTSA) demanded the recall of 67 million air bag inflators because it believes there is a safety defect, but auto supplier ARC Automotive Inc rejected the U.S. regulator's request, documents released on Friday show. The auto safety agency said the inflators pose an unreasonable risk of death or injury. Even as ruptures mount, "ARC has not made a defect determination that would require a recall of this population," NHTSA said in its demand letter to the Tennessee-based company. "Air bag inflators that project metal fragments into vehicle occupants, rather than properly inflating the attached air bag, create an unreasonable risk of death and injury." GM said it was still investigating the issue with the assistance of a third-party engineering firm. "GM is taking this expanded field action out of an abundance of caution and with the safety of our customers as our highest priority," the Detroit automaker said. GM said it was aware of two prior ruptures of ARC-manufactured airbag inflators in 2015 Chevrolet Traverse vehicles, and GM conducted two earlier small recalls of about 3,000 ARC inflators. All three rupture events in Chevrolet Traverse vehicles involved the same inflator variant. ARC noted in a letter made public Friday that no root cause for those ruptures has been identified by ARC or GM. ARC said it was assessing the scope of GMÂ’s recall.  Government/Legal Recalls Buick Chevrolet GMC Safety Crossover SUV

GM 6.2L V8 claims most powerful light-duty truck engine title

General Motors has officially captured the horsepower crown for mainstream pickup trucks with its 6.2-liter V8. The big mill, available in both the Chevrolet Silverado and GMC Sierra, comes to market with 420 horsepower and 460 pound-feet of torque, handily outdoing its two cross-town competitors, Ram (5.7-liter V8, 395 ponies and 407 lb-ft) and Ford (6.2-liter V8, 411 hp and 434 lb-ft).
The new GM 6.2 will take a bit of an investment, though. Those that want the extra thrust will need to go with either the LTZ or High Country trims from the Chevy, or the SLT and Denali trims from GMC, which are the two highest trim levels for the respective vehicles. Trim levels aside, if you're in the business of towing, GM has you covered. Optioned with the 6.2-liter V8 and the Max Trailering Package, owners will be able to pull 12,000 pounds, a hugely impressive figure.
We still aren't certain as to what sort of economy the new engine will get, but it'll probably be a bad bet for the fuel conscious. As for availability, expect to see the 6.2-liter trucks in showrooms later in the fall.