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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.

Why the 2015 Detroit Auto Show will be the best since The Crisis

The Detroit Auto Show clearly has its swagger back, and the 2015 edition will be a veritable feast for the enthusiast senses. We're talking serious performance, and it will be exhibited in a variety of forms. Sports cars. Supercars. Muscle-bound luxury cars. They're all set for splashy debuts in January in the Motor City. It's another signpost that companies have recovered from the global economic crisis that gripped the industry from 2008-09. For a while, automakers played it safe at Detroit and other shows. Environmentally friendly cars were important, especially for General Motors and Chrysler that were living on loans from Uncle Sam. Ford, Toyota and other companies generally focused on their best-selling or core models. With a few notable exceptions, recent auto shows have been a bit more buttoned-down than in the past. Boring probably isn't the right word, but austerity has been reality. That's changing. Car companies are making money. Sales are up. Aside from the many nagging recalls – and they are notable – the industry now has the time and energy to make performance cars a priority. That will be offered in hard evidence in Detroit. A year from now when we look back at this auto show, we'll sum it up with one word: Horsepower. But make no mistake, this isn't frivolous. Sports and luxury cars are expensive. They're profitable. They boost images and highlight strengths. With that in mind, here are five significant performance-oriented reveals to watch for when the show kicks off in less than two weeks. 2016 Acura NSX Acura's reborn NSX is a strong bet to earn plenty of votes for our Editors' Choice awards. It's one of the most anticipated – and strung-out – reveals of the year. Think back: we actually saw an NSX concept at the 2012 Detroit show, and Acura has spent the last three years teasing the car in a variety of ways. The slow burn, however, means we know a lot about the NSX. It's will use a mid-mounted twin-turbo hybrid powertrain and run with all-wheel drive. It will also wear an innovative zirconium e-coat paint, a new paint process that Honda says is more environmentally friendly. Honda has also said it will build the new NSX in Ohio, where a large part of the car's development work has been done. The original NSX was produced from 1990-2005 and helped establish Acura's performance credentials in the United States. It was a landmark car and a shot across the bow of Ferrari, Lamborghini and others.

Lexus says it's not worried about LS sales decline in face of S-Class, Model S

The Lexus LS is old. Sure, it received a refresh for model year 2013, but it hasn't had a clean-sheet redesign since George W. Bush was in office. It's the oldest vehicle in its segment, debuting in 2007, a full year before the current-gen BMW 7 Series, two years before the Hyundai Equus and Jaguar XJ and three years before the Audi A8.
This is particularly troubling as buyers flock to the heavily redesigned Mercedes-Benz S-Class, which debuted late last year, and the all-electric Tesla Model S. Despite this move, though, Lexus is (worryingly in our minds) not at all concerned.
"We don't feel it's a problem with the car," Brian Smith, VP of marketing for Lexus, told Wards Auto. "Many of the buyers in that segment want what's new and they're trying it."