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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.

Child cobalt miners: Automakers pledge ethical minerals sourcing for EVs

BERLIN - Leading carmakers including Volkswagen and Toyota pledged on Wednesday to uphold ethical and socially responsible standards in their purchases of minerals for an expected boom in electric vehicle production. Demand for minerals such as cobalt, graphite and lithium is forecast to soar in the coming years as governments crack down on vehicle pollution and carmakers step up their investments in electric models. To cover its plans for more than 80 new models by 2025, Volkswagen alone is looking for partners in China, Europe and North America to provide battery cells and related technology worth more than 50 billion euros ($59 billion). Talks with major cobalt producers, including Glencore, at VW's Wolfsburg headquarters last week ended without a deal. More than half of the world's cobalt comes from the Democratic Republic of Congo, a country racked by political instability and legal opacity, and where child labor is used in mines. On Wednesday, a group of 10 leading passenger-car and truck manufacturers announced an initiative to jointly identify and address ethical, environmental, human and labor rights issues in raw materials sourcing. The partnership dubbed "Drive Sustainability" consists of VW, Toyota Motor Europe, Ford, Daimler, BMW, Honda, Jaguar Land Rover, Volvo Cars and truckmakers Scania and Volvo. The alliance "will assess the risks posed by the top raw materials (such as mica, cobalt, rubber and leather) in the automotive sector," said Stefan Crets of the CSR Europe business network. "This will allow Drive Sustainability to identify the most impactful activities to pursue" to address issues within the supply chain.Reporting by Andreas Cremer.Related Video: Image Credit: Michael Robinson Chavez/The Washington Post via Getty Images Green BMW Ford Honda Jaguar Land Rover Mercedes-Benz Automakers Toyota Volkswagen Volvo Green Automakers Green Culture Electric Scania ethics mining

Brabus tunes new Mercedes GLE Coupe up to 700 horsepower

With 576 horsepower on tap, the new Mercedes-AMG GLE 63 S Coupe would be more than enough machine for most. For the rest, there's Brabus. Now the Benz tuner extraordinaire has revealed its own tuning program for the performance fastback crossover, turning the dial way past 11 to a massive 690 hp. Since the engine is already turbocharged, the 114-horse boost comes courtesy of modifications to the intake, charge-air pipes, engine control unit, and exhaust. Brabus also upgraded the turbo spools themselves, boosting torque up to 708 pound-feet. The result, according to the tuner, is a 0-62 time of 4.0 seconds flat and a top speed of 186 miles per hour. Those would have been considered supercar figures not that long ago. But this is a luxury crossover, for crying out loud. Still not enough? Brabus will further tune your GLE to 838 horsepower and a mind-blowing 1,069 lb-ft for a 3.8-second 0-62 sprint and a 200-mph top speed. In either state of tune, the aftermarket modifier will also gladly fit its aero kit, rolling stock, air-suspension control unit, and fully refit the interior to the buyer's specifications. The example you see here is making its world premier this week at the Dubai Motor Show. Brabus is also unveiling the Rocket 900 Desert Gold edition based on the Mercedes-AMG S65 sedan at the same show. They're being showcased alongside a number of regional debuts as well as a couple from its non-Benz brand, Startech. World premiere at the DUBAI INTERNATIONAL MOTOR SHOW 2015 BRABUS 700 Coupe 515 kW / 700 HP, 960 Nm, 300 km/h top speed, carbon and 23-inch forged wheels for the brand-new Mercedes GLE 63 S Coupe Brand-new on the market and already exclusively and professionally refined: BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 / (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, Internet www.brabus.com) presents the BRABUS 700 Coupe based on the new Mercedes GLE 63 S in a world premiere at the DUBAI INTERNATIONAL MOTOR SHOW 2015. This high-performance SUV capable of reaching a top speed of 300 km/h (186 mph) includes a 5.5-liter twin-turbo engine uprated to 515 kW / 700 HP (690 bhp) and 960 Nm (708 lb-ft), sporty carbon aerodynamic-enhancement components and 23-inch high-tech forged king-sized wheels. The BRABUS fine leather interior with quilted azure-blue seats and door panel elements creates an especially luxurious atmosphere.