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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.

Daimler CEO Zetsche answers 'Most likely' to question of a Maybach SUV

When Dieter Zetsche was asked about the possibility of getting Maybach, the reimagined Mercedes-Benz ultra-luxury sub-brand, into the premium SUV game, the Daimler CEO reportedly told Auto Express, "Most likely." Those two little words aren't a firm answer – let alone an indication of timing – but we wouldn't be shocked to find out Mercedes is already working on one. Range Rover has gone even more upscale, the Bentley Bentayga is coming this year, as will the Maserati Levante. Rolls-Royce is deciding on an SUV this year (we think it's only a matter of time before they say "yes"), the Lamborghini Urus is still expected in 2018, Aston Martin is raising funds to build a crossover, and there have been rumors of a BMW X7 and Audi Q9 for years. Point being, everyone is busy writing their own invite to this ultra posh party. The latest comments would appear to put to rest any will-they/won't-they questions around a high-riding Maybach offering. There were rumors last summer that a GL-Class SUV (a model range shortly to be known as GLS-Class) with revamped styling and lots of luxury touches would join the top-tier sub-brand, but then in November, Mercedes' global head of sales and marketing told Automotive News, "I don't want to categorically rule anything out, but at this stage we have no plans for it [a Maybach SUV]." If and when a Maybach utility does become official, we'll only be picking up where we left off with the brand's previous incarnation: a GL-based Maybach was rumored way back in 2007. News Source: Auto ExpressImage Credit: Copyright 2015 Steven Ewing / AOL Maybach Mercedes-Benz SUV Luxury mercedes gl-class

Mercedes-Benz intros long-wheelbase E-Class for China

Long-wheelbase sedans are a pretty hot commodity in China, and to keep up with the competition, Mercedes-Benz has introduced an extended version of the 2014 E-Class sedan at the Shanghai Motor Show. Audi, BMW, Volvo and even Cadillac offer extended versions of sedans specific to the Chinese market, and now the E-Class L, shown off in E400L guise, will give luxury sedan buyers in China yet another option.
Compared to the standard 2014 E-Class sedan, the new China-spec E-Class L has been stretched by 5.5 inches - all of which goes to the rear-seat passengers. According to an article on China View from earlier in the year, the market for chauffeur-driven cars is growing in the Asian nation, so automakers need long-wheelbase models like the E-Class L in order to fully compete. As for what powers this stretched E-Class, it's available in three models: the diesel E260L, the V6-powered E300L and the E400 Hybrid.
The redesigned E-Class and the all-new A-Class are just the first of 20 new Mercedes-Benz products that will be introduced into the Chinese auto market by 2015. Scroll down for the full press release on long-wheelbase E.