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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 makes the LS more comfortable, smarter and even quieter for 2021

Lexus introduced an updated version of the LS, its flagship sedan, earlier in 2020, but it left out details about the American-spec model. As expected, it announced our version of the car will get several improvements for 2021. Now in its fifth generation, the LS receives an array of small but significant changes that come together to make the ride quieter and more comfortable. Engineers explained they revised the spring and damper rates, increased the diameter of the anti-roll bars, and added larger liquid-filled front and rear bushings for an even cushier rider.  Visual modifications are subtle, which is to say the LS remains not-so-subtle. Stylists tweaked the front bumper, made the spindle grille a little bit darker, and redesigned the headlights by getting rid of the Z-shaped look. Black trim replaces the chrome in the rear lights, and the color palette grows with a new shade called Iridium. Back for 2021, the F Sport package adds a sportier-looking front end with a specific grille, a body kit, and 20-inch alloy wheels. It also brings bigger brakes, and buyers can pay extra for a Dynamic Handling Package which bundles Variable Gear Ratio Steering, Active Rear Steering, and an Active Stabilizer Suspension. Inside, sedans equipped with the F Sport package get front seats that adjust pneumatically and electrically in 28 ways. Speaking of the interior, Lexus also added extra padding on the armrests, the seat cushions, and other touch points, plus revised springs and thicker cushioning for the front seats. Buyers who prefer being driven can order heated and massaging rear seats, plus a passenger-side seat that reclines at up to 48 degrees. Lexus made no major mechanical modifications to the LS 500, meaning power comes from a twin-turbocharged, 3.5-liter V6 which produces 416 horsepower and 442 pound-feet of torque. It spins the rear wheels via a 10-speed automatic transmission, and all-wheel drive is offered at an extra cost. Reaching 60 mph from a stop takes 4.6 seconds, which is impressive for a big, heavy sedan developed with a major focus on comfort. Motorists who want to keep their fuel budget in check can select the LS 500h, which offers a 354-horsepower hybrid powertrain that teams a naturally-aspirated 3.5-liter V6 set up to run on the Atkinson cycle with two electric motors connected to a lithium-ion battery.

Pontiac Aztek enjoys rebirth thanks to Millennials

Apparently, Millennials – those between 18 and 34 – aren't afraid to look different on the road, and they like performance, too. A new study by Edmunds is discovering some surprising vehicle choices by this group. Among them, the long-derided Pontiac Aztek is getting a new day in the sun with 25.5 percent its buyers coming from this generation in the first half of 2015. For comparison, Millennials represent an average of 16.8 percent of used car purchases. The Aztek is slowly shaking its reputation as a styling abomination, which seems tied to its appearance on Breaking Bad. The show premiered in 2008, and the Pontiac has been on this list for four of the past five years, according to Edmunds. It even led the pack in 2010. A recent Retro Review from MotorWeek also showed that the crossover wasn't always so hated. While it's still a shock to see the Aztek on any popularity list, the awkward-looking crossover only ranks sixth among Millennials. The vehicle with the biggest portion of buyers from the generation is the Dodge Magnum with 27.6 percent. According to Edmunds, the bluntly styled wagon is especially popular in Detroit and Chicago. The Chrysler Pacifica comes in a close second at 27.3 percent. When it comes to used cars, value and utility appear to trump just about anything else for many Millennial buyers," Edmunds analyst Jeremy Acevedo said in the report. Young buyers aren't afraid of sporty rides, either. The Subaru WRX has 26.4 percent Millennial buyers to rank third place on the list, and the Volkswagen R32 takes fifth at 25.7 percent. Just a few points lower in seventh place is the Nissan GT-R at 25.4 percent, and the final performance machine in 10th place is the Lexus IS-F with 24.7 percent. Related Video: