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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.

We'll see the next Lexus LS debut in Detroit this January

Lexus announced today that the next-generation LS luxury sedan will make its official debut at the Detroit Auto Show in January. A fitting venue considering the original LS sedan made its debut there way back in 1989. Lexus didn't reveal much about the new flagship other than the teaser photo above. The company says that the LS will use a lengthened version of the LC 500 coupe's chassis, which should be a good thing if it also means Lexus can give the LS even a little bit of the emotion and character we found in the LC. Since the LS will share chassis design with the LC, it will probably share powertrains, too. This means it could get the both the LC 500's 471-horsepower 5.0-liter V8 coupled to a 10-speed auto, and the 354-horsepower 3.5-liter V6 hybrid unit with its 4-speed automatic from the LC 500h. As for styling, the LS will probably look like a toned-down version of the LF-FC concept. Lexus describes the car as having a "coupe-like silhouette." Spy shots of the big four-door seem to show a relatively conventional sedan body with a rakish windshield. We'll reserve final judgement for when we see the uncovered car. The 2017 North American International Auto Show will be a big one for Toyota. In addition to revealing this new Lexus flagship, the company will unveil the completely redesigned Camry. Based on the teaser shot released last week, this new Camry will likely be a significant departure from the conservative machine we know now. We'll be sure to bring you all the details on both models when they're released in January. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2018 Lexus LC 500 | Drivers' Notes

The 2018 Lexus LC 500 is the latest and greatest sports coupe from Japan. The 471-horsepower luxury spaceship looks like something straight off the auto show floor. Few cars have made the transition from concept to production with so little change, and unsurprisingly, the LC gets plenty of attention. While sports cars are great on winding roads and flat-out around a racetrack, the compromises in pursuit of performance can show when you actually try to live with one every day. That said, a car that pulls at your heartstrings can be forgiven for a lot. Senior Green Editor John Beltz Snyder: On my night with the Lexus LC 500, I was tasked with picking up my toddler, Wolfgang, from daycare. I wondered if I'd even be able to shoehorn the child seat into the coupe's tiny rear row. I moved the front passenger seat up as far as it would go and folded it forward, unclipping the seat belt from the shoulder strap holding it in place. I was able to get the child seat in its rear-facing position (my son's not quite two years old), and was happy to see that the LC had latch brackets, which made installation a little easier. I had to leave the passenger seat moved up and leaning forward, but the child seat fit properly. When I escorted Wolfgang out of daycare and to his ride, he said "Crazy car, Papa." Then I had to climb in the rear seat on the driver's side to clip him in. Totally worth it, though. He loved the car, and wanted to check it out more completely when we got home. And the LC 500 got a lot of looks from other motorists. Rubberneckers slowed down to check out the car on Woodward, and lingered as they passed me on the highway. The one thing I couldn't share with them was the full song of the car's 5.0-liter V8. Only in a couple instances when I was alone on a clear, country road could I mash the right pedal to enjoy the throaty sound of the exhaust as the engine revved to the top. In regular traffic, with a 10-speed automatic transmission keeping the revs low, the sound is much more subdued. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Editor-in-Chief Greg Migliore: The LC 500 is one of the most drop-dead gorgeous cars I've driven this year. It's simply a stunner. The curves, the angles, and the creases all work in harmony to create the rare design that's busy yet also cohesive. Everything plays a role, even if it's a bit over the top. It attracts a lot of attention.