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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.

Lexus crafts working IS sedan out of cardboard [w/video]

People make model cars out of all sorts of material: wood, plastic, metal... and sure, even cardboard. What sets this one apart is that it's built to scale – as in, full scale – and what's more is that it can actually be driven. Then again, we couldn't vouch for its crashworthiness, so that might not be advisable. The replica Lexus IS sedan was commissioned by the Japanese automaker's UK office and made by two British workshops: Scales & Models and LaserCut Works. It's inspired by the Japanese art of origami and made out of cardboard, except for the working parts and the frame made of steel and aluminum. It's got a fully functional interior, opening doors, working headlights, rolling wheels, and an electric motor. The form is made up of cardboard 10 millimeters (0.4 inches) thick, provided by packaging company DS Smith. The material was laser-cut into 1,700 components, according to a 3D digital model provided by Lexus, and assembled by hand and painstakingly fixed into place by water-based wood glue that has to set for 10 minutes between each step. Little wonder that the whole project took three months to complete. The finished product will be on display at the NEC in Birmingham later this week during the Grand Designs Live Show. But if you're not planning on heading there yourself, you can check it out in the image gallery above and making-of video below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 05 Oct 2015 LEXUS UK UNVEILS FULL-SIZE ORIGAMI INSPIRED CAR REPLICA IS MODEL CELEBRATES LEXUS CRAFTSMANSHIP • Created as a celebration of the skills of Lexus's takumi craftsmen and women, capturing the spirit of Creating Amazing in design and engineering • Life-size replica of the Lexus IS, crafted from 1,700 fully recyclable laser-cut cardboard sheets • Created by a five-strong team of professional designers and modellers from UK specialist companies LaserCut Works and Scales and Models, supported by DS Smith (cardboard manufacturers) • Powered by an electric motor, the Origami Car can be driven Brussels, Belgium - There has never been a Lexus like it: sheet metal, glass and plastics have been set aside for the creation of a one-off life-size model crafted in precision-cut cardboard. The remarkable Lexus Origami Car is a faithful replica of the new IS saloon, produced as a celebration of the human craftsmanship skills that go into every car Lexus makes.

Lexus coupe caught in spy shots actually RC, headed for Tokyo reveal?

Lexus may have pulled a fast one on us. The car our spy shooters spotted yesterday may not, in fact, be an IS F Coupe as we indicated. Rather, the car shown above may be a new model, dubbed RC, that will arrive at this year's Tokyo Motor Show.
Following a report from Automotive News, the RC is believed to be a pure coupe, rather than a hardtop convertible. This gels with information provided on the IS sedan's launch, when Lexus spokespeople said the IS Convertible would remain on the current platform. With styling based on the LF-CC from the 2012 Paris show, the new car will share a rear-drive platform with the IS and GS sedans.
Power is expected to come from a 3.5-liter V6 that turns out 306 horsepower. That car will likely wear the RC 350 badge. A hybrid model is expected to follow, but in a twist, it won't be coming to the US. The big news, though, is that the RC will spawn an RC F.