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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.

Cadillac logo losing its wreath?

The easily recognizable Cadillac logo dates back to the company's founding in the early 1900s, but over the last 110 years, there has been an on-again, off-again love affair with the wreath surrounding the crest. Cadillac's current badge design has used the wreath since the 1980s, but Automotive News is reporting that GM's luxury division is planning to ditch the laurel wreath for a cleaner-looking logo.
The new logo could make its debut as early as next month on a new concept car that will be revealed at the Pebble Beach Concours d'Elegance, although the report also says that it might be until 2015 before it makes its way to a production car. Even then, it doesn't like anything has been finalized yet, as the article also says that plans could still change.
As Cadillac looks to improve its global presence as a luxury automaker, the report says that a simpler logo could make it easier for designers to incorporate the badge onto the car - either in the grille or above the grille (possibly in a fashion similar to Mercedes-Benz). Head on over to the AN article, which shows the Cadillac logo dating back to its earliest design.

Cadillac to move select offices from Detroit to Manhattan?

Under Johan de Nysschen, Infiniti moved its headquarters from Yokohama, Japan, to Hong Kong. Now at Cadillac, it appears the company's new president could be planning a relocation of at least some of the brand's operations from Detroit to Manhattan, according to a new report from Reuters.
In the case of Infiniti, de Nysschen pushed for the move because moving away from the brand's Nissan overlords would allow it a bit more freedom. It's evidently a similar case for Cadillac, with Reuters speculating that such a move would help distance the brand from the corporate culture in Detroit. A Big Apple move could also attract new talent that may have considered a job with the brand but were put off by the idea of living in Detroit.
It's important to note that if such a move takes place, it likely won't affect the folks actually responsible for developing the brand's vehicles. Instead, administrative functions, including marketing, could be the focus of the relocation.