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Weekly Recap: Automakers rethink the definition of luxury

Variety is the spice of life, but it's becoming a prerequisite for luxury carmakers in the ultra-competitive US market. The Detroit Auto Show was strong evidence of this reality. It's not enough to offer attractive and well-appointed cars and SUVs anymore. Luxury brands that want to be competitive need to invest in everything from high-powered supercars to clever hybrids. To be relevant, you need to be green and mean – and everything in between. As General Motors product chief Mark Reuss said after the reveal of the 640-horsepower Cadillac CTS-V: "We are not leaving anything on the table." He was speaking for Cadillac, but he might as well have been speaking for the luxury car market. The CTS-V debuted in Detroit about an hour after Lexus surprised showgoers with the reveal of the RC F GT3 race car and then announced ambitious plans to return to competitive racing. That almost overshadowed the fact Lexus had just revealed another potent addition to its growing F line, the 467-hp GS F. View 20 Photos But for luxury brands, it's not just about maximum horsepower for well-heeled enthusiasts or decadent amenities for the Grey Poupon set. Strong competition from all corners has forced automakers to refine and expand their lineups in ways unforeseen even a few years ago. Case in point: Mercedes-Benz finally has an answer to the BMW X6, rolling out the GLE coupe in Detroit. The X6, which blends coupe-like styling cues with some of the functionality of an SUV, debuted in 2008. Back then it was a punchline, but seven years and more than 260,000 sales later, the X6's success has compelled Benz to respond. Mercedes – one of the strongest proponents of diesel technology – also debuted the C350 plug-in hybrid sedan, which promises a range of 20 miles on electricity, though fuel economy figures were not announced. The car pairs Mercedes' well-received 208-hp turbocharged four-cylinder with an electric motor for total output of 275 hp and 443 pound-feet of torque. Meanwhile, Infiniti will add the Q30 hatchback to its lineup by the end of the year, new president Roland Kruger reiterated in Detroit. It's expected to be joined by a crossover variant, and the additions will help strengthen Infiniti in the United States and abroad. "While we're expanding our product line, we're also expanding our market reach," he said. That's something echoed by Jaguar executives, who are preparing to launch the brand's first crossover, the F-Pace, in 2016.

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.

Lutz dishes dirt on GM in latest Autoline Detroit

Bob Lutz sits down for Autoline Detroit - Click above to watch video after the jump
Autoline Detroit recently played host to Bob Lutz, and, as is always the case, the former General Motors vice chairman dished out some great commentary. Lutz was promoting his new book Car Guys vs. Bean Counters: The Battle for the Soul of American Business, and talk quickly turned to his role as it related to product development and high-level decision making at GM. While on the topic of brand management, Lutz revealed a few rather interesting tidbits about his former employer:
All Chevrolet vehicles were required to have five-spoke aluminum wheels and a chrome band up front, as part of the Bowtie brand's overall image.