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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 best Super Bowl car commercials from the last 5 years

If you've been dipping into the Autoblog feed over the past days and weeks, you wouldn't even have to be a sports fan to know the Super Bowl is coming up. Automakers have been teasing their spots for the big game, dropping them days early, fully-formed onto the Internet and otherwise trying to amp up the multi-million-dollar outlays that they've made for air time on the biggest advertising day of the year. And, we're into it. The lead up to the Super Bowl is almost akin to a mini auto show around these parts; with automakers being amongst the most prolific advertisers on these special Sundays. The crop of ads from 2015 looks as strong as ever, but we thought we'd take a quick look back at some of our favorite spots from the last five years. Take a look at our picks – created from a very informal polling of Autoblog editors and presented in no particular order – and then tell us about your recent faves, in Comments. Chrysler, Imported From Detroit Chrysler, Eminem and a lingering pan shot of "The Fist" – it doesn't get much more Motown than 2011's Imported From Detroit. With the weight of our staffers hailing from in and around The D, it's no wonder that our memories still favor this epic Super Bowl commercial (even though the car it was shilling was crap). Imported really set the tone for later Chrysler ads, too, repeated the formula: celebrity endorsement + dramatic copy + dash of jingoism = pulled car-guy heartstrings. Mercedes-Benz, Soul teaser with Kate Upton One of our favorite Super Bowl commercials (and yours, based on the insane number of views you logged) didn't even technically air during the game. Mercedes-Benz teased its eventual spot Soul with 90-seconds worth of Kate Upton threatening to do her best Joy Harmon impression. (Teaser indeed.) It doesn't win points for cleverness, use of music, acting, or any compelling carness, but it proved that Mercedes' advertisers knew how to make a splash in the Internet Age. And, hey, it's still classier than every GoDaddy commercial. Kia, A Dream Car. For Real Life Like the Mercedes video above, the initial draw here is a pretty lady; in this case the always stunning Adriana Lima. But this Kia commercial really delivers the extra effort we expect while scarfing crabby snacks and homemades, too. First of all, Motley Crue. Second, a cowboy on a bucking rhino. Enjoy yet again.

AWD turbodiesel Equinox, Terrain dropped for 2020

Citing low demand, General Motors is dropping the AWD diesel options off the Chevrolet Equinox and GMC Terrain roster. Chevrolet spokesman Kevin Kelly confirmed to CarsDirect that for 2020, the diesel versions of these SUVs will only be offered with front-wheel-drive. CarsDirect notes that with the AWD diesel Equinox and Terrain gone, the only AWD diesel option in this class is the Mazda CX-5 Skyactiv diesel, which is significantly more expensive: As the AWD diesel CX-5 is only available in a fully loaded Signature specification, the $42,045 price tag is almost $10k heftier than the cheapest comparable Equinox, the AWD 1.6-liter diesel LT which starts from $32,495. The 2019 GMC Terrain AWD SLE costs $34,795 in comparison, which works out to being around $7,200 cheaper than the Mazda. The higher trim levels for the Equinox and Terrain are Premier and SLT, respectively. Some reasoning behind the AWD diesel GM SUV's low uptake is their own price difference to base FWD gasoline models: you can get a 1.5-liter Equinox for less than §25,000 listed. While the 2.2-liter Mazda has plenty more power at 168 hp and 290 lb-ft, compared to 137hp and 240 lb-ft in the 1.6-liter GM SUVs, the Equinox and Terrain are notably more frugal – they are rated 32mpg combined, while the Mazda can manage 28 mpg. With better fuel economy and a significantly lower list price, the General Motors twins are at least more wallet-friendly when it comes to numbers, and as the vehicles will cease to be built in that configuration there's likely to be some cash on the hood on ones in stock. News Source: CarsDirectImage Credit: Chevrolet Chevrolet GM GMC confirmed gmc terrain chevrolet equinox