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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 IS builds, new F performance structure get SEMA reveal

Lexus just announced a new F brand strategy at SEMA, and while the products themselves are not getting a massive overhaul yet, it’s vital to understand the new terms if you plan on being in the market for a sporty Lexus soon. Prior to today, we had F Sport, F Sport Performance and F. The F Sport cars were mostly aesthetic upgrades, and while some of them had performance upgrades, not all of them did. Only one F Sport Performance vehicle exists now, and itÂ’s the IS 500 F Sport Performance. Meanwhile, we have a number of F models, which is LexusÂ’ highest-performance moniker.  Going forward, there will be four performance tiers: F SPORT Design, F SPORT Handling, F SPORT Performance and F. WeÂ’ll lay out LexusÂ’ definitions of all four below for you. F SPORT Design: These vehicles may feature sport-inspired exterior design, including unique front and rear bumpers, grille and wheels. F SPORT Handling: Will build on Design with sport-tuned suspension components honed at the track, including Adaptive Variable Suspension. F SPORT Performance: In addition to the updated suspension components, these models may receive a higher-performance powertrain, as seen in the 2022 IS 500. F: As the highest expression of Lexus performance, F models will be further upgraded with innovative components developed for the racetrack, including upgraded brakes, advanced aerodynamics and lightweight materials. So there you have it. Similar to the Germans with multiple layers of AMG, Audi Sport and BMW M, Lexus will have multiple layers of F. In addition to this actual product news, Lexus revealed a pair of SEMA show cars. Both of them are from the IS tree, with one being an IS 500 F Sport Performance, and the other being an IS 350 F Sport. WeÂ’ll start with the IS 500. Hiraku & Townsend Bell is behind this “Street Performance” IS 500. Nothing much changed with the powertrain, but it does add an AÂ’Pexi induction box, TOMS Racing carbon fiber suction pipe and AÂ’Pexi exhaust system. Handling is enhanced with TOMS chassis braces in the front and rear. Plus, it gets an AÂ’Pexi adjustable coilover system. Rotiform LAS-R 20-inch wheels are wrapped in Nitto tires, and a Brembo GT braking system improves stopping power.  You can tell that the IS 500Â’s appearance has been modified, too — itÂ’s sporting a one-off 3-D-printed body kit. The Hiraku Co.

Vice chronicles Okinawa's illegal street racing scene

We all know that street racing is dangerous, and that motorsports are best left on the track or drag strip. However, that doesn't mean that there still isn't some outlaw allure among enthusiasts of racing on public roads. In this video, Vice Japan profiles Eikichi Nagayoshi of Japan's island of Okinawa. He is a used car dealer by day and an illegal racer by night.
Nagayoshi has a deep love for his highly customized Toyota Aristo (better known to us as a first-generation Lexus GS) that he claims produces over 1,000 horsepower and has hit 205 miles per hour. He races his car both on drag strips and in drifting competitions, but says that he often has to ship the car to mainland Japan to compete. In the absence of those opportunities, he sometimes gathers friends and takes the racing to the public roads. While we're not down with street racing, this Vice video is an intriguing personality piece, as well as a look into Japan's fabled underground racing scene. Scroll down to check out the video, but make sure you have the "CC" button clicked, because several portions are subtitled.