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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.

2015 Lexus LS gets tiny tweaks to try to keep up in LA

The 2015 model-year updates for the LS are certainly minor, but at least Lexus isn't letting its flagship sedan languish completely. The biggest change for the revised model is an improved infotainment system with an updated navigation and dynamic guidelines for the backup camera. Lexus' Enform App Suite also allows owners to remotely control some of the vehicle's functions, including the door locks, ignition and climate control settings. Among the litany of incredibly small tweaks, the dome lights now use LEDs, and the F Sport model that includes features like a sport-tuned air suspension and 19-inch forged wheels gets an added badge at the rear. The changes have increased the turning circle by 3.9 inches for models with the standard suspension and 18-inch wheels. All of the changes are definitely minor, but hopefully they'll sustain the posh motor until its next iteration is ready. 2015 Lexus LS Shows Why This Luxury Flagship Became A Luxury Legend - New Multimedia System for 2015 - Lexus Enform App Suite Upgraded - Upgraded Backup Camera With Dynamic Gridlines - F SPORT Model With Special Suspension, 19-inch Wheels, Brembo Brakes October 16, 2014 History seems to be repeating itself. The Lexus LS upended the luxury segment a quarter-century ago, and one reason was that it made a powerful V8 engine standard when it was a very expensive extra-cost option in some European models and not even available in others. Just change the year to 2015, and the situation seems to be replaying. A supremely smooth, standard 386-horsepower 4.6-liter V8 teamed with an eight-speed automatic transmission is only one facet of the 2015 Lexus LS 460, though undeniably, it's the one whose benefit you feel quite strongly during a road test. Nearly silent acceleration remains a hallmark aspect of driving a Lexus LS, which also offers the option of a more engaging driving experience with the F SPORT Package. A wide range of model choices also make the Lexus LS a standout. The LS 460 comes in regular and long-wheelbase versions, each with the further choice of rear-wheel drive or all-weather drive (360 hp with AWD). The ultimate Lexus flagship sedan remains the LS 600h L hybrid with 438 total system horsepower from a 5-liter V8 paired with an electric motor and all-weather drive. New for 2015, the LS gains a new multimedia system. The multimedia system, accessed through the navigation screen, provides a multitude of capabilities.

Did BMW really win the luxury car sales race?

As anyone who follows our monthly By The Numbers series already knows, the luxury car sales race in the United States was close all of last year as BMW, Lexus and Mercedes-Benz seesawed up and down for sales supremacy. At the end of the year, it was BMW on top of the standings with 346,023 total sales. Or was it? According to data released by Polk, comparing the actual number of vehicles registered between the three top luxury players in the US paints a slightly different picture. Polk's data suggests that only 335,259 BMWs were registered in 2015, compared to 340,392 Lexus models. Why the disparity? It's all a matter of timing. Actual end consumers buy new cars, in almost all cases, from a franchised dealer. BMW delivered 346,023 vehicles in 2015, but only 335,259 of them were registered by their new owners. Presumably, those 11,000 BMWs did (or will) end up registered in the driveways of consumers, but they hadn't before January 1, 2016. Lexus General Manager Jeff Bracken wrote in an email to Automotive News, "Luxury sales leadership as measured by vehicle registrations is important to Lexus as it represents actual consumers engaging directly with our dealers." Of course, it goes without saying that we'll be paying keen attention to the 2016 luxury car sales race as it unfolds. If it's anything like it was in 2015, it'll come down to the wire, and even then may not be entirely clear. Related Video: News Source: Automotive News - sub. req.Image Credit: Andrew Harrer/Bloomberg via Getty BMW Lexus Mercedes-Benz Car Buying Car Dealers Luxury luxury cars