Forbes, Jan. 3, 2019 — Energized by tax reform, lower fuel prices and high employment the expected second-half slump was less severe than predicted, leading to a strong kick to the finish line for U.S. auto sales. That’s the big picture. A closer look shows passenger cars sales continuing to tank, taking down overall retail results with them.

“New vehicle sales were surprisingly strong in 2018 despite late cycle headwinds from higher interest rates and more nearly-new competition in the used market,” said Jonathan Smoke, Cox Automotive Chief Economist in emailed remarks. “The key positive factor was stimulated demand from tax reform, which strengthened retail demand as the year progressed and also enabled strong gains in fleet sales.”

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