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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.

2018 Autoblog Technology of the Year finalists

After months of prepping and several days of testing, we narrowed the field for Autoblog's 2018 Tech of the Year award to the Nissan Rogue with ProPilot Assist semi-autonomous driving system, the Lexus LC 500h and its new hybrid powertrain, and the Chevy Colorado ZR2 and its trick Multimatic spool-valve off-road shocks. Three very different cars with very different technologies duking it out for the award. Look for news of our winner at the 2018 Detroit Auto Show. We hand out this award every year to the technology or feature that we feel moves the bar forward for the automotive industry. Read more here on how our testing process works. We discuss, debate and count up score sheets, judging each vehicle and technology on a few different criteria. Is its purpose noteworthy? Does it work well? Does it advance the industry? The Nissan Rogue with ProPilot Assist was actually a prototype, as the technology will first debut in the 2018 Nissan Leaf. Still, we're here to test the tech and not the car. ProPilot Assist combines adaptive cruise control system combined with lane-keeping assistance. The system uses sonar, radar and a number of cameras for some light semi-autonomous driving and enhanced safety. While these systems aren't new individually, Nissan's system is affordable, intuitive, and coming to a mainstream product — democratizing the tech in a novel way, if you will. That's why it's here. The Lexus LC 500h uses a new powertrain that Lexus has dubbed the Multi-Stage Hybrid System. Basically it combines two types of transmissions — a CVT and a four-speed automatic — in a single unit mated to a naturally aspirated V6. That's complex and unorthodox technology, and Lexus engineered it to give drivers the efficiency of a CVT without sacrificing driving enjoyment. The package is subtle, working in the background to create a nearly seamless driving experience. It's engaging in a way most other hybrids can only dream of. The fact that it's wrapped in such gorgeous sheetmetal only makes things better. The Multimatic spool valve shocks in the Chevy Colorado ZR2 might seem low-tech compared to ProPilot Assist and the Lexus Multi-Stage Hybrid, but they represent a completely novel application of a technology that several years ago was so expensive that it was reserved for top-tier race cars. Like the LC 500h, these shocks really change your perception of how a vehicle like this should drive.

Chevy SS prototype spotted wearing Pontiac G8 clothes

Do not adjust your computer screen, you are not seeing the rebirth of the Pontiac brand. General Motors has chosen to use a G8 to disguise a test mule for the latest prototype of the forthcoming Chevrolet SS. The G8 was closely related to the Holden Commodore and Vauxhall VXR, the platform upon which the new Chevrolet performance model will be based. It should come as little surprise, then, that GM has opted to use the cladding from the former G8.
Thought the front clip of this mule is pure Pontiac, note the vents immediately behind the front wheel. That is a distinctive design hallmark of the Vauxhall VXR. Also note that this vehicle is right-hand drive, as the Holden and its Chevy counterpart will be very closely related. That likely includes potential drivetrains. The spy photos of this mule also reveal very wide rear tires, and rear wheels that do not match the fronts.