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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 considering more engines, Vsport model for Escalade

Want to roll in the latest Cadillac Escalade? You can get it with a 6.2-liter V8... or a 6.2-liter V8. Cadillac only offers the one engine option. But that may soon change.
According to the latest from Automotive News, Cadillac is contemplating a couple of new powertrain options for its blingin' big ute. The report suggests a twin-turbo V6 and a V6 turbodiesel could be offered, and that Cadillac could create a Vsport version of the Escalade like it offers on the new CTS sedan.
The more diverse engine offerings would help attract buyers from the new Lincoln Navigator, its prime competitor, which switched from a 5.4-liter V8 this year to a 3.5-liter twin-turbo V6. The turbo V6 engines (both gasoline and diesel) would also help Cadillac market the Escalade overseas - particularly in Europe, where higher fuel prices preclude the prospect of driving a big V8 SUV for many buyers. Escalade sales have dropped from 35-40k units in the mid-2000s to around 12,000 the past couple of years.

Man trapped in Cadillac XLR for 14 hours after battery dies

A 75-year old Cleveland man ended up trapped in his 2006 Cadillac XLR for 14 hours last month, according to a story reported by the Detroit Free Press. The owner of the car, Peter Pyros, hopped into his roadster to back out onto his driveway, but he quickly learned that the battery was dead. He was "trapped" because the doors use an electric button to activate the door latch to open the door. Since the battery was dead, the buttons did nothing. Now, GM planned for an eventuality like this by placing a manual door release handle on the ground next to the seat. It's marked with a red diagram of the driver-side door opening. There's also a section about it in the owner's manual. The only problem here, was that Pyros says he didn't know the release was there, and he didn't have his owner's manual in the car. Because of this, Pyros may not have made it out alive if not for a neighbor coming to his rescue. "I came to the conclusion that I was going to die ... I was at peace with it. I asked God to help me twice, then I said, 'OK, God if this is the way I'm supposed to die, I will die,'" Pyros said to reporters. There's every chance he could have died in the car, too. Temperatures in Cleveland hit 77 degrees the day he was in the car, and he said it was unbearably hot and difficult to breathe after only 30 minutes sealed inside. Pyros reportedly tried yelling, pounding on and even trying to break the car's windows without success. At one point, Pyros wrote a note to his nephew explaining what happened if he ended up dying. What eventually saved him was a curious neighbor who came to investigate after he noticed his garage door was still open late at night. His neighbor called the police after he found him in the car, and emergency personnel actually ended up charging his car's battery up enough to get the electric door release to work. Of course, after everything settled down, there are now lawyers involved. They're going after GM, with an argument accusing the automaker of not making the emergency latch more obvious both in the car and in the owner's manual. GM doesn't appear to be having any of it. Here's its statement on the matter: "Because this varies by make and model, drivers should review the door lock section of their owner's manual, and follow up with their dealer or customer assistance center if they have any questions," GM spokesman Tom Wilkinson wrote to the Free Press. This type of door release isn't particularly uncommon for GM vehicles.