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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.

New GMC feature reminds drivers to check for kids in hot cars

We see the stories every summer: Dozens of children die from heat stroke every year after being left inside hot cars. GMC has introduced a feature in the 2017 Acadia in an effort to help curb the problem. Simply called Rear Seat Reminder, it alerts the driver if the vehicle suspects someone might have been accidentally left behind. GMC's alert will trigger under certain circumstances. Five chimes will sound and a warning will display if the rear doors are opened and closed within 10 minutes of the vehicle starting or if those doors are opened while the vehicle is running. The system does not sense items or people in the rear seat like the front passenger seat would to trigger the airbag. Warnings will be displayed regardless of interior or exterior temperature; while the summer months are the deadliest, leave-behind deaths occasionally occur during cold weather. Drivers should be aware that temperatures in vehicles can quickly rise to dangerous levels, even if the ambient temperature seems cool and comfortable. View 23 Photos Unfortunately, a large percentage of children are intentionally left in cars. A negligent caretaker, whether it be a parent, grandparent, or babysitter, can leave a child behind while they go to work or run an errand, not expecting any problems. Some children unintentionally trap themselves in cars while playing in the cabin or trunk. The Acadia's system is unlikely to prevent these scenarios. While we believe that GMC should be commended for making an effort to put an end to these tragedies, we're not certain how effective the system might be until driver education improves. It's also possible drivers will come submit to warning fatigue and begin to ignore the messages. That said, if this software-based solution prevents just one death, it was worth the effort. Related Video: Image Credit: GMC GMC Safety Crossover gmc acadia

GM recalling 118K Colorado, Canyon pickups over missing hood latches

General Motors has announced a recall of 118,800 Chevrolet Colorado and GMC Canyon pickup trucks due to the possibility of secondary hood latches not being installed at the time of manufacture. The affected vehicles are from the 2010, 2011 and 2012 model years, all of which were built between November 9, 2009 and August 28, 2012.
According to the official National Highway Traffic Safety Administration report, these trucks fail to "comply with the requirements of Federal Motor Vehicle Safety Standard No. 113, 'Hood Latch System.' The hood may be missing the secondary hood latch." In other words, owners of these trucks could find their vehicles' hoods opening unexpectedly while driving.
The official recall campaign is expected to begin on January 17, 2013. Dealers will inspect the affected pickups and if a secondary hood latch is not present, one will be installed free of charge. Scroll down to read the official NHTSA report.