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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.

2015 Mercedes-Benz S550 PHEV offers the best of both worlds it's ready to conquer

The Mercedes-Benz S-Class just keeps growing – both in terms of dimensions and in terms of variants. Nevermind the S-Class Coupe for a moment and focus only on the sedan: in North America alone, you can get the big Benz in S550, S600, S63 and S65 spec, and at the Los Angeles Auto Show this year, Daimler has rolled out the new Maybach version as well. But if it's a more environmentally friendly way to woosh around town in serene luxury that you're after, you'll want to look at the new S550 Plug-In Hybrid. Joining Daimler's growing range of battery-powered models alongside the E400 Hybrid, B-Class Electric Drive and Smart ED (the latter soon to be replaced by an all-new version), the S550 PHEV is the German automaker's first plug-in hybrid. It was first announced over a year ago and made its debut at the Frankfurt Motor Show last year, but now the US-spec car is making its North American debut in LA. Promising "the performance of a V8 and the fuel consumption of a compact model," the S550 PHEV pairs a 3.0-liter twin-turbo V6 to an 80-kW electric motor, the S550 PHEV packs a combined 436 horsepower and 479 pound-feet of torque to reach 62 in just 5.2 seconds, top out at 130 miles per hour or drive up to 20 miles on electric mode alone. On the European combined cycle, it'll return an impressive 84 miles per gallon, all the while never skimping on the luxury. Scope it out in our gallery of photos from the show floor in LA and delve into the details in the press release below. First PLUG-IN HYBRID with a star: S550 PLUG-IN HYBRID The new Mercedes-Benz S550 PLUG-IN HYBRID blends an ultramodern hybrid drive configuration with the unique innovations and the luxurious equipment and appointments of the S-Class. The luxury sedan impresses with exceptional dynamism and efficiency. Thanks to standard pre-entry climate control it also offers unique climate comfort. The first certified three-liter luxury sedan in the world is a further milestone on the road to emission-free mobility. "The S550 PLUG-IN HYBRID is the first luxury sedan with the performance of a V8 and the fuel consumption of a compact model. The greatest challenge in this is to translate efficiency into superior performance. In this respect there is a highly interesting parallel with our successful Formula 1 racing car, which likewise has a turbocharged V6 engine and a high-tech hybrid drive," says Prof. Dr.

Driving the BMW M2 Competition, Honda Odyssey and Toyota RAV4 Prime | Autoblog Podcast #651

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by West Coast Editor James Riswick. This week, they talk about driving the BMW M2 Competition, Honda Odyssey and Toyota RAV4 Prime. Then they discuss James' experience testing the new Yakima CBX cargo carrier, Autoblog readers' preference for the GMC Hummer EV over the Tesla Cybertruck, and Mercedes-Benz taking a larger stake in Aston Martin. Lastly, they help James' father find a new car in the Spend My Money segment. Autoblog Podcast #651 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2020 BMW M2 Competition 2021 Honda Odyssey 2021 Toyota RAV4 Prime Testing the Yakima CBX Cargo Carrier on the Subaru Outback 75% of Autoblog Twitter follower prefer the GMC Hummer EV over the Tesla Cybertruck Mercedes-Benz to boost stake in Aston Martin to 20%, lend it some tech Spend JamesÂ’ fatherÂ’s money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: