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Luxury car brands scrambling to avoid a blue Christmas

DETROIT — When financial markets surge to new records, sales of luxury cars usually rise, too. Instead, October U.S. auto sales reports on Wednesday showed that a collapse in sales of luxury sedans is accelerating. Consumers have gradually shifted over to luxury sport utility vehicles from sedans in the past decade, but the trend — which has occurred in both the non-luxury and luxury sedan segments of the auto market — was particularly pronounced in October. Sales of Daimler AG's Mercedes-Benz S-Class, long a global benchmark for large, premium sedans, plunged 49 percent in October, and are down 24.8 percent for the year to date. General Motors' Cadillac brand said it sold just 779 of its CTS sedans in October. Demand for that car, designed to compete with German luxury sedans, is down nearly 33 percent for the year. "There's still a significant portion of the market that wants a car, but I'm sure there were people who preferred a horse to a car at one point." Cadillac's best-selling model this year is the XT5 compact SUV, which has more than doubled sales from a year ago. The shift within the luxury vehicle market away from sedans toward SUVs of all sizes is forcing some of the most prestigious brands to scramble to add SUV models to their lineups or boost SUV production to meet demand. "In the short term, there will be pressure to add (consumer) incentives, cut production or both," said Cox Automotive analyst Michelle Krebs. "And we just don't see an end in sight to this trend." The Dow Jones Industrial Average has been trading at all-time highs, usually a good sign for luxury sedans, but as major automakers reported new U.S. vehicle sales for October on Wednesday, sales for passenger cars continued their slide while luxury SUV and crossover sales rose again. According to Kelley Blue Book data, in 2007 luxury sedans made up 7.6 percent of U.S. new vehicle sales, while luxury SUVs made up 4.2 percent. Through September this year, luxury SUVs made up just over 7 percent of the market, compared with 4.9 percent for luxury sedans. In the short term, luxury brands could use holiday season sales promotions to clear slow-selling sedans off dealer lots, analysts said. Toyota's Lexus brand said on Wednesday it will launch its "December to Remember" year-end sales promotion for the 18th straight year.

Such Sweet Sorrow: Cadillac's CTS-V gets an Irish wake

As the saying goes, all good things must come to an end. The honkin', stonkin' second-generation CTS-V, powered by Cadillac's brawny supercharged 6.2-liter V8 has been a very good thing. And now that the 500 final coupes – the only CTS-Vs designated 2015 models – have been built (just five remain unsold as of this writing), it is indeed a good thing that's come to an end. But Cadillac is not letting 2009–2015 CTS-V go gently into that good night, even as its replacement is poised to debut in just in just two months at the 2015 Detroit Auto Show. Instead, Cadillac invited us to Austin's Circuit of the Americas racetrack for what it called an "Irish wake" for the model that has proven to be one of the quickest and most charismatic models in General Motors' history. If you don't know what an Irish wake is, if you envision storytelling, songs, debauchery and more than a little liquor, you'll be in the ballpark. In this case, though, adrenaline substituted in for the booze, with squealing tires and shrieking V8s providing the singing. The debauchery took the form of an all-you-can-drive lapping of COTA in all three bodystyles – coupe, sedan and wagon – and the stories were told by the grins plastered on our faces all day. First and foremost, we'll miss the CTS-V's perfect balance of luxury and sportiness. Even after six years with no major changes, the CTS-V is surprisingly spry. Certainly, you never forget that it's a heavy thing, weighing in anywhere between 4217 pounds for the manual-equipped coupe to 4424 for an automatic wagon, but with 0-60 times of about four seconds and the ability to hit about 150 mph on COTA's back straight, the Vs remain an absolute hoot on the track. Sure, some of its details – the blocky front fascia shapes and the spoiler on the sedan and coupe models, for example – look a bit dated, but the overall design still looks sufficiently badass. The interior design has worn pretty well, too, and however Cadillac may feel about center stack buttons being so last decade, we favor them over the capacitive-touch madness of today's CUE system. We're not going to bother doing another full review of the car here, but suffice it to say, there is plenty we will miss. First and foremost, will be the CTS-V's perfect balance of luxury and sportiness. Rumor has it that Cadillac will offer the 6.2-liter LT4 V8 in the next generation (we predict about 600 hp), but we hear that the new car will skew more toward luxury than balls-out performance.

2014 Cadillac XTS Vsport

Not long after bombing around the Milford Road Course in the new CTS Vsport, Cadillac invited me to try out its other new-for-2014 Vsport model: the XTS. And despite using the same twin-turbocharged 3.6-liter V6 from the CTS, the Vsport package takes on a whole new meaning here in Cadillac's softer flagship.
In the CTS, this trim perfectly bridges the gap between the standard models and the hardcore CTS-V, and is focused on being the best-driving version of the range without a standalone V badge. The XTS, however, has no proper V model, so the Vsport becomes the new range-topper for that line by default. But unlike the CTS Vsport, which uses rear-wheel-drive architecture and is focused on driving dynamics above all, the XTS is geared toward a much different customer.
The entire XTS experience is far more concerned with plush comfort than handling prowess, and while this Vsport model certainly ups the ante with more power and some mild suspension and steering tweaks, it's not exactly what we'd call a particularly engaging experience. But that doesn't mean it isn't good.