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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.

Mercedes pays tribute to 1955 Mille Miglia with special-edition SL

The Mercedes-Benz SL is one of the longest-running nameplates in the business, and its history has been marked with numerous achievements. But few were as impressive as the 1955 running of the Mille Miglia, and Mercedes pays tribute to that race and the results it achieved there with this latest special-edition roadster. Called the SL Special Edition Mille Miglia 417, this roadster starts with the eight-cylinder SL550 with dynamic stability management and adaptive damping and adds on several highlights. Red trim adorns the front spoiler, the stripe across the matte carbon rear spoiler, the brake calipers and the rims of the black AMG Performance wheels. The red pieces accent the matte black paint, while the interior features AMG Line sports seats with carbon-finish leather and red trim, along with a red and black nappa leather steering wheel and carbon trim. The SL arrives 60 years after the Mille Miglia in which a 300 SL driven by American gentleman racer John Fitch - bearing the number 417 and starting at 4:17 a.m. - led a 1-2-3 class finish, landing fifth overall and leaving many purpose-built racers in the dust. The special edition is confirmed for the US, arriving this fall with pricing to be announced closer to launch. SPECIAL EDITION SL "MILLE MIGLIA 417" Exclusive SL passion February 17, 2015 - Stuttgart -- Mercedes-Benz celebrates the 60th anniversary of a memorable motor racing success with an extraordinary special model of the SL Roadster. Its name commemorates the unexpected victory of a 300 SL in the production sports cars class at the 1955 "Mille Miglia", one of the world's most challenging long-distance races. What's more: the SL Special Edition "Mille Miglia 417" provides a special experience of the unique symbiosis of maximum comfort and motor racing spirit that traditionally characterizes every SL. The Special Edition adds a distinctive note, among other things, with red exterior highlights and fine materials in the exclusively appointed interior. The Mercedes-Benz SL Roadster is more than an icon. Passion shapes its character and its charisma – in the past and today. Legendary vehicles and their stories dominate the model history. One of them is told by the SL that started the famous "Mille Miglia" in 1955 with race number 417 at 4:17 am. After 11 hours, 29 minutes and 21 seconds it had completed the race distance of 1597 kilometres on public roads from Brescia to Rome and back.

Race recap: 2016 Monaco Grand Prix gets very wet, a little wild

More than at any other race, the Monaco Grand Prix question is: which combination of demolition derby, Safety Cars, and bad pit strategy will decide the podium? Last year Lewis Hamilton's late, confounding pit stop cost him victory. The year before, Nico Rosberg's qualifying "mistake" put him on pole and Mercedes-AMG Petronas' pit strategy sealed his win – good for Nico, bad for Hamilton and the rest of the field. In 2013 Hamilton dropped from second to fourth when he lollygagged in the pits. In all three years, Rosberg won. The new X factor for 2016: a Red Bull resurgence that helped Daniel Ricciardo clinch his first career pole. Nevertheless, bad pit strategy had its say in the results. Ricciardo built up a 13-second lead by Lap 15 in spite of heavy rains that forced the Safety Car to lead the first eight laps of the race. Ricciardo stopped on Lap 23 to switch to intermediate tires for the drying track, ceding the lead to Hamilton. Hamilton pitted from the lead on Lap 31 for softs, then Red Bull pulled Ricciardo in again on Lap 32 and made a snap decision to put him on ultra softs, but the tires weren't ready when Ricciardo reached his pit box. What should have been a three-second pit stop turned into a 13.6-second pit stop. Ricciardo left the pits as Hamilton came down the straight and the Aussie lost the lead into the first corner. Despite two attempts to pass later in the race, Hamilton finished first, the Aussie second. It's the second race in a row where pit strategy cost Ricciardo a near-certain win. Conversely, Force India nailed both tire strategy and pit timing with Sergio Perez. The Mexican started in eighth but got into third before half the race was done, passing four cars in the pits, and finished on the podium's final step. Otherwise the order barely changed from about half distance, with Ferrari driver Sebatian Vettel in fourth, followed by Fernando Alonso in the McLaren, Nico Hulkenberg in the second Force India, Rosberg in the second Mercedes, Carlos Sainz for Toro Rosso, Jenson Button in the second McLaren, and Felipe Massa taking the final point for tenth for Williams. Storms didn't only hover over the area, though – dark clouds hung around several teams and drivers. Mercedes' reliability is no longer so reliable. The Silver Arrows suffered engine issues on both cars in qualifying, and Hamilton's problem almost kept him from setting a time in Q3.