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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.

US buyers show little interest in big hybrids

The idea of producing large, luxury-vehicle hybrids is turning into a "what were they thinking?" exercise in futility, USA Today reports. General Motors is discontinuing hybrid versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs, while Mercedes-Benz and Toyota's Lexus division are doing the same with their S-Class hybrid and LS hybrid sedans, respectively. The culprit? Big price increases for fuel economy improvements that border on the unimpressive. Granted, the Escalade hybrid gets 31 percent better fuel economy than the standard version, but that still maps out to a combined fuel-efficiency rating of just 21 miles per gallon. That can be seen as a worthwhile increase, if it didn't cost over $8,000 extra. The 2014 Escalade Hybrid, for example, starts at $74,425 while the non-hybrid can be had for $66,295. Meanwhile, the Lexus full-size hybrid costs $6,000 more than the regular version but only gets 1-2 mpg better combined fuel economy. The result of all these high costs? Low sales. Through April, GM sold 82 of its hybrid SUVs and pickups, down from 541 a year earlier. And the LS hybrid sales were in single-digit territory for April. That isn't stopping Lexus from promoting its hybrids as the right solution (with the wrong facts), though. There are still automakers giving big hybrid vehicles a shot, though. Nissan's Infiniti division is selling a hybrid version of its QX60 and says an impressive 10 percent of QX60 buyers choose the hybrid, which costs just $3,000 more. Looks like money talks. Featured Gallery 2015 Cadillac Escalade: First Drive View 35 Photos News Source: USA TodayImage Credit: Copyright 2014 Brandon Turkus / AOL Green Infiniti Lexus Mercedes-Benz Hybrid lexus ls gmc yukon mercedes-benz s-class infiniti qx60 chevrolet tahoe

Lexus RC F and GS F 10th Anniversary Editions are all black and blue

Lexus's F marque, the letter affixed to sport-tuned and performance models, debuted just over 10 years ago when the IS F hit dealer showrooms. The V8-powered sedan was a direct competitor to the tried and true BMW M3. The IS F was followed by the V10-powered LFA, RC F coupe and GS F sedan. In celebration of the F sub-brand's 10th anniversary, Lexus is rolling out two new limited edition variants of the RC F and GS F. In America, only 240 RC Fs and 100 GS Fs will be available. There is a price to pay for exclusivity. The RC F 10th Anniversary Edition starts at $80,810, a $16,160 premium over the standard model. It's not just special badging. The new model comes standard with the Performance Package, Triple Beam headlights and Intuitive Park Assist. Those three options will run you $7,160 on their own. At $89,350, the GS F 10th Anniversary Edition is only a $5,000 premium over the standard model. Both cars come with matte Nebula Grey paint, 19-inch black BBS wheels wrapped in Michelin Pilot Super Sport tires, and Brembo brakes with blue calipers. The RC F has blue leather seating with white accents up front as well as blue accents on the shift knob, steering wheel and instrument panel cover. The GS F gets blue leather seating both front and rear. There are blue carbon-fiber accents, blue suede on the dash and blue seat belts. Additionally, the GS F gets blue leather on the steering wheel, console and shift knob. The RC F and GS F are still powered by a 467 horsepower naturally-aspirated 5.0-liter V8. Power is sent to the rear wheels through an 8-speed automatic transmission. Both cars also pack a torque vectoring differential. Look for these special edition models later this year. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery Lexus RC F and GS F 10th Anniversary Edition cars View 15 Photos News Source: Lexus Design/Style Lexus Coupe Luxury Performance Sedan lexus rc f lexus gs f