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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.

Cadillac Escalade reportedly getting 200-hp bump from supercharger

Cadillac is preparing to supercharge the Escalade, according to a recent report. The body-on-frame General Motors SUVs that it shares its basic underpinnings with are allegedly in line to receive a big increase in power, too. Released for the 2021 model year, the fifth-generation Escalade eschewed downsizing and launched with a 6.2-liter V8 as its standard engine. It develops 420 horsepower and 460 pound-feet of torque when it's naturally aspirated, and Motor Trend learned from an anonymous source that the optional supercharger will increase the first figure to anywhere between 600 and 625. The eight's torque output will undoubtedly go up, too. The supercharged Escalade won't outgun the sold-out Dodge Durango SRT Hellcat, which gets 710 horses, but it will pack a serious punch. It doesn't sound like the V8 will require significant modifications to handle the extra power because the supercharger kit will likely be installed by dealers, not on the assembly line. This strongly suggests that it's more of a bolt-on job than one that requires taking the engine out and apart to install stronger connecting rods and forged pistons, for example. ECU tweaks will be part of the package, too, and the fuel delivery system may require some upgrades. Interestingly, Motor Trend learned from Texas-based Hennessey that the SUV's ECU is locked to tuners, which adds credibility to the report. Motorists who want more power will need to go through official sales channels, then. Bigger brakes and a firmer suspension won't be part of the package — at least not yet. The same source outlined a true high-performance evolution of the body-on-frame behemoth that will be quicker and tighter to drive. Oddly, it's not being developed by the engineers in charge of Cadillac's V-branded models, according to the report. If the report is accurate, we'll learn more about the supercharged Cadillac Escalade in the coming months, and it might go on sale in time for the 2022 model year. Expect the supercharger to come with a four-digit price tag. Chevrolet's Tahoe/Suburban and GMC's Yukon/Yukon XL will reportedly be available with a supercharger, too.

GM recalling 54k Cadillac SRX, HD pickup models

There are more recalls to report General Motors, but these latest actions pertain to newer examples of the Cadillac SRX, Chevrolet Silverado HD and GMC Sierra HD. With so much scrutiny on the company's recall strategy, GM is under increasing pressure to call in defective models more quickly, and it appears to be doing so here.
Here in the US, the automaker is recalling 50,571 Cadillac SRX crossovers from the 2013 model year fitted with the 3.6-liter V6 because the transmission control module programming can cause a three- or four-second lag in acceleration at low speeds. The explanation filed with the National Highway Traffic Safety Administration states, "if the following sequence occurs within two seconds: during an upshift from first to second gear (8-10 mph), the driver then brakes the vehicle to less than 5 mph, and then accelerates again," the delay can occur. According to Automotive News, the recall effects 56,400 vehicles worldwide, and the company is not aware of any crashes caused by the problem. The fix consists of a transmission control module (TCM) reflash.
In a separate recall, GM is repairing 51 Chevrolet Silverado HD and GMC Sierra HD pickups from the 2015 model year in the US. In vehicles with diesel engines and dual fuel tanks, the nuts that connect the fuel pipe to each side of the transfer pump between the tanks may be improperly torqued, which could cause a fuel leak. Obviously, this could be a fire hazard. The remedy is simply tightening the hardware. According to GM spokesperson Alan Adler, there have been no fires actually caused by the potential leak. "Only 21 of the trucks are in customer possession and they can be fixed anytime because there are no parts involved. The others are being fixed at dealerships," Adler said in an email to Autoblog.