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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.

Consumer Reports explains its disdain for infotainment

One of the perks of reviewing all manner of cars and trucks is that we're exposed to all the different infotainment systems. Whether Cadillac's CUE, Chrysler's UConnect, BMW's iDrive or MyFord Touch, we sample each and every infotainment system on the market.
Not surprisingly, some are better than others. It seems consumers have come to a similar consensus, with Consumer Reports claiming that Ford and Lincoln, Cadillac and Honda offer the worst user infotainment experiences. Not surprisingly, you won't find much argument among the Autoblog staff.
Take a look below to see just what it is about the latest batch of infotainment systems that grinds CR's gears. After that, scroll down into Comments and let us know if you agree with the mag's views.

Here is the Cadillac XT6 three-row SUV's interior

The Cadillac XT6 has once again been spotted by one of our spy photographers. Though the outside is still as buttoned-up as ever, our photographer managed to get close enough to see the completely uncovered interior. On the surface it looks more like the interior of the CT6 than the latest Cadillac model, the XT4, which is rather surprising. Specifically, the dashboard layout is nearly identical to the CT6's. It's a wide, sweeping dash, and the mid-section is dominated by a broad piece of trim that appears to be carbon fiber in this model. It likely can be replaced by wood, leather or a variety of other trims. The top part of the center stack is dominated by a large touchscreen with touch buttons surrounding it for driver's aids. Directly underneath are subdued air vents followed by the climate controls. These controls appear to have been lifted straight from the CT6 and feature touch buttons and a trio of toggle switches. The few places the dashboard deviates from the CT6 include how the XT6's fancy trim spans the full width of the dash, rather than giving way to some plain leather on the driver's side. This gives the whole dash a more upscale look. The dash also doesn't try to smash too many different materials and textures into one design. Overall, it all looks attractive enough, though we're a little disappointed to see a lack of physical buttons as we saw in the XT4. That being said, there are XT4-inspired elements in the XT6's interior. Most prominent is the scroll wheel down in the center console. We suspect the infotainment system will be effectively identical, so the wheel will similarly serve as a redundant means of controlling the infotainment system along with the touchscreen, voice commands and wheel controls. The shifter also seems to be the same as the XT4's. The XT6 exterior doesn't really reveal anything new. It still looks angular, and it still looks long enough to have a third row of seats. The introduction of this model will certainly give Cadillac a much more rounded lineup of crossovers from small to large, something the brand sorely needs. Related Video: