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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.

New Lexus small CUV may have been behind moving ES production to Kentucky

Lexus may have had another big reason - in addition to the financial incentives potentially worth up to $146.5 million that Kentucky offered - to move ES production to its Georgetown, KY plant. The ES has always been built in Japan, and a report at TheDetroitBureau.com claims that the Kyushu facility will be tooling up to build a new model thought to be a compact hybrid crossover expected to go on sale next year. While ES300h production would remain in Japan, shedding 50,000 units of traditional ES production would free capacity for what many think will be an important model in the Lexus lineup.
The new CUV will come in below the RX and be built on the platform of the RAV4. Speculation is that there will be an NX200t and an NX300h, the former possibly getting the 2.0-liter turbo Toyota engine due in 2014 - matching the predicted timeline for the CUV and supposedly also meant for an RX200t - and latter getting the same 2.5-liter hybrid powertrain in the ES300h. We'll see a preview of the Audi Q3 and BMW X1 fighter at this year's Tokyo Motor Show; the production version should be unveiled at the 2014 Geneva Motor Show.

2015 Lexus RC F configurator heats up

Just over two weeks after Lexus activated its online configurator for the 2015 RC350, the Japanese luxury marque is flipping the switch on the car we really want to customize – the 467-horsepower RC F. In addition to letting us play about with various configurations for the new sports coupe, Lexus' latest builder is decidedly different and more visually pleasing. It also does away with the brand's typical, and occasionally unintuitive, grouping of options. In its place, we have a trio of simple, logical packages. There's a navigation pack that adds, um, navigation. It also includes in Lexus' Enform telematics suite. You can also select a Premium Pack, that adds luxury features like heated and vented seats, park assist and LED headlamps, while an all-weather pack tacks on a heated steering wheel, headlamp washers and a deicer for the wiper blades. There are some secondary options, too, including an attractive set of 19-inch wheels, an updated leather interior, adaptive cruise control and a moonroof. All in all, pretty standard fare. Prices for the RC F start at $62,400, not counting a $925 destination charge. Head over to Lexus' consumer page and build your ideal RC F.