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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.

Lexus LF-30 Electrified Concept announces the brand's entry in EVs

The star of the Lexus booth at the biennial Tokyo auto show is an extremely futuristic concept named LF-30 Electrified that previews the firm's cars could look like — and be powered by — in 2030. The LF-30 Electrified uses clever technology to take Lexus into the electric vehicle segment for the first time. Lexus has leveraged parent company Toyota's expertise in the field of hybrid powertrains to become one of the industry's pioneers in the segment, but it has always shunned fully electric drivetrains. The LS-30 signals an about-face. Drawing on lessons learned while designing hybrids, engineers developed a 536-horsepower drivetrain that consists of a mammoth, 110-kilowatt-hour lithium-ion battery pack and four in-wheel electric motors that can deliver front-, rear-, or all-wheel drive. Don't let the press images fool you; the LS-30 is huge. It's nearly as long as the firm's LS flagship sedan, closer to a Chevrolet Suburban in width, and it weighs almost 5,300 pounds. It can nonetheless reach 60 mph from a stop in 3.8 seconds, and it can travel for up to 310 miles on one charge according to the overly optimistic WLTP testing cycle. Those figures might be irrelevant, because the driver can become a passenger by turning on the on-board autonomous technology and letting it worry about how quickly to accelerate, and when to charge. There's even a drone that Lexus calls an Airporter that autonomous transports luggage, for example, from in front of the owner's house directly to the car's trunk. Odds are you won't even need to tip it. Traveling in the LF-30 feels different depending on where you're sitting. The driver experiences a new concept Lexus calls Tazuna that draws inspiration from how a rein can create a mutual understanding between a horse and a rider; it sounds similar to what Mazda aimed for with the Miata, which famously channeled Jinba Ittai, or horse and rider as one, but it's a completely different take on it. The driver can adjust the stereo or dial a destination in the navigation system without taking his or her eyes off the road thanks to steering wheel-mounted switches and a large head-up display. The driver feels a lot like a jet fighter pilot, then. The passenger, on the road hand, is traveling first-class thanks to a seat inspired by high-zoot air travel, and a gesture-controlled screen. The rear seats recline, and the folks sitting in them can watch movies on a voice- and gesture-controlled glass roof called SkyGate.

Lexus LC 500h | Autoblog's 2018 Technology of the Year winner

Each year, we here at Autoblog review and test hundreds of cars from dozens of automakers, but only a few show the kind of technological advancement (whether that's infotainment, active safety features, advanced engine or transmission designs, or novel suspension) required to compete in the Technology of the Year award process. We award an automaker for bringing to the market features, components or an entire vehicle that we feel pushes the industry forward and sets the stage for things to come. For 2018, the Autoblog Technology of the Year award goes to the Lexus LC 500h and its Multi-Stage Hybrid System. For years, hybrids have sacrificed engaging dynamics in favor of improved efficiency. A few high-end models bucked that trend, but nothing truly mainstream felt quite right. Lexus' Multi-Stage Hybrid System is different, marrying an e-CVT that has six virtual gears to a conventional four-speed automatic, resulting in 10 effective ratios. It's as complicated as it sounds, though in practice the difference between it and a standard automatic is nigh imperceptible. You get the benefits of a hybrid — fuel efficiency, part-time all-electric driving — without sacrificing driver enjoyment, all packaged inside a stunning, fun-to-drive grand tourer. We feel the new hybrid system really gives the LC 500h a leg up on the competition, particularly because it pairs long-distance comfort, high performance, and efficiency in a way we feel will really resonate with consumers (and competing automakers, too). Our editors were impressed by just how well the LC 500h passed off duties between the internal-combustion engine and the electric motors, the only real tell that it was in EV mode being the tachometer needle resting at zero. And the regular Lexus LC 500 is also a wonderful car. It's also a step forward for Lexus as a whole. For years, the Japanese automaker was known for solid luxury vehicles that were sedate to a fault. The LFA was a worthy halo car, but it was also basically unattainable to an average well-off buyer. The F performance vehicles (IS F, GS F, and RC F) gave a much-needed kick to the brand but were a bit rowdy and rough around the edges. The LC 500h strikes a more perfect balance that feels truer to Lexus' brand values: It's quiet without being boring, and exciting without offending. It's also green without punishing the driver for it. Lexus paid great care to get the balance of this car right.