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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.

2019 Lexus ES First Drive Review | Entry-level luxury that wants to have fun

NASHVILLE, Tenn. — For 2019, the Lexus ES is all new and marks the seventh generation of the Japanese nameplate's entry-level luxury four-door. We're happy to report that the redesign brings some very welcome attributes, and the 2019 Lexus ES does everything you'd want an entry-level luxury vehicle to do. Performance, no matter which of the two drivetrain options you choose, is respectable, interior comfort is on par with a Restoration Hardware sofa you'd spend real money on, handling is communicative, and most important for a Lexus, it's serenely quiet inside. While these are great attributes, there are a few places we wish Lexus had spent more energy revamping. Through the humid hill country just outside Nashville, on a mix of the congested city arteries and the flowing switchbacks of Tennessee's forested interior, we put the ES through its paces. The 2019 ES is based on Toyota's TNGA platform, which underpins both the latest Avalon and Camry models. Perhaps that'd constitute a knock in a previous era, but the new Camry chassis is a rollicking peach compared to some others in its class. It's rigid enough for a windy road dance, but compliant enough for daily-driver duties. Even better, Lexus engineers improved the TNGA platform for use in the ES. A 200 percent increase in stiffness over the previous ES is due in part to a liberal use of structural adhesives and laser-welded screws. The front strut towers are reinforced, and topped with a brace between them. This extra attention to detail pays dividends that include a smoother ride and better handling. New adaptive Dynamic Control Shocks quietly smooth out bumps and undulations, allowing us to wind through the rural backcountry roads confidently, and the steering gives better feedback than we'd expect from a vehicle like the Lexus ES. Pushing the big sedan into one of the many hilly, and often blind, corners along our route elicits only a minute amount of body roll. But chassis improvements aren't the only upgrade from the previous model. The 2019 Lexus ES comes standard with a 3.6-liter V6 delivering 302 horsepower at 6,600 rpm and 267 pound-feet of torque at 4,700 rpm. This represents a bump of 34 hp and 19 lb-ft from the previous generation's V6. The engine is coupled to Lexus' new eight-speed automatic transmission, which is encased in a housing smaller than the brand's previous six-speed automatic.

Toyota projecting record profits, thanks in part to weak yen

Toyota retained its global sales crown in 2014 by selling 10.23 million cars in the calendar year. As the positive number might suggest, the Japanese automaker is doing extremely well financially, too. Although, some tougher times might be on the horizon. Toyota recently released its financial figures for the three fiscal quarters running from April 1 through the end of December 2014. Net profit jumped an impressive 13.2 percent to 1.727 trillion yen ($14.7 billion) for that period. It could be the Japanese automaker's most profitable time ever when the fiscal year ends in March, if things keep going this way, according to The New York Times. Toyota's own profit forecast for the 12-month period is also up by 130 billion yen ($1.1 billion) to 2.13 trillion yen ($18.1 billion). One key to the company's success is the low value of the Japanese yen, because it allows Toyota to make more money on each vehicle the company sells abroad. The currency is now worth relatively less than any time since the early '70s, according to The New York Times. Despite the rosy financial numbers, actual sales have started to fall, albeit a very slight amount. Through the three fiscal quarters, the company sold 6.73 million cars, a drop of just 45,365 vehicles. Toyota also reduced its forecast for the fiscal year to 9 million units, rather than the original estimate of 9.05 million. According to The New York Times, the shrinking Japanese auto market and difficulty in China might mean losing the global sales lead next year. For the US, sales jumped 145,411 units from April through December to a total 2.1 million vehicles. Operating income reached $4.27 billion, nearly 50 percent more than last year, according to The New York Times. Toyota Motor Corporation (TMC) Announces April – December 2014 Financial Results February 04, 2015 Toyota's global net income jumped 13.2 percent during the nine-month period (April 1– December 31, 2014) of the 2015 fiscal year. Global Financial Highlights: Global sales decreased by 45,365 vehicles to 6.73 million, with strong sales in North America and gains in Europe, offsetting decreases in Japan and other regions.