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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.

China fines Toyota $12.5 million over Lexus price-fixing

BEIJING — China's market regulator on Friday has fined Japanese carmaker Toyota Motor 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province, according to a document on its website. The decision comes as China steps up regulation over auto sales in the world's biggest vehicle market, where more than 28 million cars were sold last year. The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers' rights. Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices, a sales tactic usual among individual auto dealers in China but frowned upon for carmakers. A spokesman at Toyota, Lexus' parent firm, told Reuters the firm acknowledged the penalty and respects the decision. He did not comment further. China's auto sales are declining, but Lexus' sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier. In June, China's market regulator imposed an 162.8 million yuan fine on Ford Motor Co's joint venture with Changan Automobile Group for violating anti-monopoly law. ($1 = 6.9927 Chinese yuan renminbi) Reporting by Yilei Sun and Norihiko Shirouzu. Related Video:

See the resemblance? This sneaker is inspired by the 2021 Lexus IS

We can all rest easy at night, now that one of the world's great questions — What would a Lexus IS look like if it were a shoe? — has been answered. Lexus has collaborated with streetwear brand RTFKT to make a sneaker inspired by the 2021 Lexus IS. The project is part of a Lexus campaign called "All In" that celebrates people who are passionate about their craft. For the cynical, you can read this as a campaign that uses influencers in non-automotive fields to put the IS in front of a new audience and attract younger customers to the Lexus brand.   RTFKT calls themselves the first sneaker company to spring from the world of gaming. Their footwear leans towards the fanciful and futuristic styles typically found in video games, and a quick glance at their website presents the shoes as digital items of varying rarity that you might find in a game. RTFKT's creative director Chris Le said, “We wanted to make sure when the audience looks at the sneaker they instantly know it is the IS.” We're not so sure about that, though. If it weren't for the Lexus F Sport logo on the side, Lexus badge on the Velcro strap and the model name embossed across on the back, we'd have a hard time guessing it had anything to do with a now-472 hp Japanese sports sedan. RTFKT explains that certain design elements inspired by the car. The chunky sole in black evolved from a tire, for example. The front of the shoe is said to be a version of Lexus's trademark spindle grille (though we're not really seeing it). A 3D-printed carbon fiber-pattern "spoiler" on the back of the sneaker gets closer to the Lexus's actual decklid wing.  The sneaker's sides use the Black NuLuxe material of the car's interior with light gray stitching from the seats. The middle silver stripe was "inspired by the details of the headlights," though given the "L" shape of the "L" DRLs on past Lexus IS sedans we're surprised the collab isn't with Nike. To be fair, the new IS's DRL integration is much more pleasant to look at. Lastly, the Grecian Water blue color, one of the signature paints on the new IS, features throughout the shoe. “All the intricate design elements come together, and at a first glance itÂ’s a neckbreaker,” said RTFKT CEO Steven Zaptio. We are probably in no place to comment the veracity of that statement, but then neither is anyone else. As it turns out, no one will ever wear it, because it's a one-off that will never go on sale. Related Video: This content is hosted by a third party.