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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 Toyota Supra may get a twin-turbo Lexus V6

We've heard endless rumors that a successor to the much loved and much missed Toyota Supra is in the works. Toyota hasn't done much to deny these conversations. On the contrary, the FT-1 concept from two years ago and the partnership with BMW have only fueled the fire. Now, talk of a new Lexus engine has led to speculation about the supposed Supra's powertrain. To be clear, this is mostly heresay. Few things have actually been confirmed, but based on what we know a few conclusions can be drawn. We know that BMW and Toyota are working on a joint product. We've seen mules testing out in the wild. In BMW guise, the possibly Austrian-built car will more than likely powered by turbocharged inline four and six-cylinder engines. Unless Toyota wants to use Bimmer power, they'll need to shoehorn one of their own under the hood. That leads us to this rumor of a twin-turbocharged V6 that will presumably power the new Lexus GS and LS. Japanese automotive publication Mag-X first reported on this engine. It was then picked up by YouWheel and Car Keys. Mag-X cites Toyota insiders and even gives an engine code, 943F. This engine allegedly will make more than 400 horsepower and more than 300 lb-ft of torque. While unconfirmed, this makes sense for Lexus. Nearly every luxury competitor has a six-cylinder engine with forced induction. While Toyota has previously had turbocharged inline-sixes, they've never produced a factory turbo V6. Every automaker is downsizing engines in an effort to meet fuel economy and emissions regulations. Toyota and Lexus will follow suit. Taking that V6 and tuning it for a performance application is a solid, if unverified, possibility. Related Video:

Lexus boots up early NX configurator

Lexus is ramping up to launch its NX luxury compact crossover. Its international website just launched a teaser page for the CUV that shows off the available models and some nifty new photos of the upcoming vehicle on location. The site also includes an early configurator to allow potential customers to imagine their future NX.
Unfortunately, the configurator is quite bare bones at the moment. It only allows users to choose from 4 trims, 10 colors and 3 wheel designs. You can't do anything to the interior, and there are no options. Pricing is still a mystery as well.
We do know that in the US the NX is offered with either the company's new 2.0-liter four-cylinder, turbocharged engine with a six-speed automatic or a 2.5-liter four-cylinder hybrid powertrain. The F Sport package is also available with either engine for a dash more sport in your crossover.