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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.

Fresh-faced Lexus NX crossover set to debut in Shanghai

The updated Lexus NX compact crossover is set to show its revised face at Auto Shanghai 2017. The NX debuted back in 2014, which means the time is prime for a mid-cycle refresh. While this won't be an all-new model, expect fresh styling both inside and out. The single teaser images shows a new headlight design and possibly a reworked grille. We don't know much beyond that. The NX, which shares a platform with the Toyota RAV4, comes with the choice of two powertrains and the option of front or all-wheel drive. The NX 200t is powered by a 235 horsepower turbocharged inline four-cylinder engine. The 300h is the requisite hybrid model. Its total system output is 194 horsepower. In addition to the updated NX, Lexus is rolling out the LS 500h for an Asian audience. The car debuted earlier this month in Geneva. Look for more photos and info after the debut on either April 19 or 20. Related Video: Image Credit: Lexus Design/Style Auto Shanghai Lexus Crossover Luxury lexus nx refresh lexus nx 200t lexus nx 300h

2014 Lexus IS brings boldest design yet to entry-level luxury

Lexus is evidently dead serious about removing some of the starch from its collar, as evidenced by the boldly styled new IS sedan just unveiled here at the Detroit Auto Show. We didn't know what to make of Lexus' entry-level sport sedan when we first saw images of it earlier this week. Dominated by the gaping maw of a spindle grille and flanked by headlamps with Nike swoosh daytime running lamps, the photos showed a distinctive (if not completely cohesive) design. Having now seen the design in the metal, we have to admit it comes together better than it does on screen.
The new model will feature both rear- and all-wheel drive models in both 2.5-liter V6 (IS250) and 3.5-liter V6 (IS350) trims. Lexus also showed an IS300h hybrid model at the reveal, but it is earmarked for Lexus' home market of Japan, along with Europe and other markets. No word yet on why the model probably won't be sold here in North America, but our AutoblogGreen compatriots are looking into it.
Aside from its bold new look front and rear, the IS carries forward a lot of the ideas seen in other newer Lexus models, namely the GS. Hidden beneath the IS' sheetmetal is the multilink rear suspension from the GS, along with its electric power steering setup. The new IS rides atop a three-inch longer wheelbase for better rear seat room, but during our brief time sitting in the car at the press conference melee, it still didn't feel terribly roomy (it rarely does in this class). At least the seatbacks fold 60/40 for the first time for additional utility.