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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.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

The new presidential limo is almost ready and way bigger than a Suburban

If you're familiar with the current presidential limo, which is nicknamed The Beast, you know it's based on a medium-duty truck platform. This new one, shown in aerial spy photos, appears to be just as huge. The vehicles flanking it in these shots are Chevrolet Suburbans, basically the largest passenger vehicle you can buy. And while the limo looks car-shaped, it's very tall and much longer than the three-row SUV. You might say it's yuge. Like its predecessor, The Beast 2.0 is being developed in secret because all of its various systems and defenses are matters of national security. We are fairly confident that it has lots of armor protection, glass that's about five inches thick, and special systems to clean the air in the event of a biological warfare attack. The current Beast is also said to carry a pint or two of the President's blood type just in case something does happen. When the President is being transported in a motorcade, he is at his most vulnerable, so Cadillac One and the vehicles that surround it have to be prepared for almost anything. In fact, two identical presidential limos travel together to make it harder for would-be attackers to do bad stuff. The Suburban escort it's getting here at the GM proving grounds is appropriate, since most of the vehicles used by the Secret Service to accompany the President's motorcade are big GM SUVs. By the looks of this camouflaged prototype, GM is nearing completion of testing the new Presidential car. The styling is a mix of CT6 sedan and Escalade, with a little XTS thrown in, and it looks a lot more sleek by comparison than the current blocky Beast. When it's ready, President Donald Trump will be the first to ride in it on official business and the current beasts will probably be retired and end up in a museum. Related Video: Featured Gallery Cadillac One Presidential Limo Spy Photos View 13 Photos Image Credit: Chris Doane Automotive Government/Legal Spy Photos Cadillac Luxury Sedan the beast cadillac one