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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.

2020 Lexus LS 500h Drivers' Notes Review | Be it blue or red, it's excellent

This is not your grandmother's gold Lexus LS. It's not your other grandmother's hybrid, either. The 2020 Lexus LS 500h represents the biggest step forward in terms of driving dynamics, style and pure luxury for a model line that has largely been known for dependability and craftsmanship. It should satisfy those elements too, but now, there's a lot more to tickle the right side of the brain.  We got a chance to sample two different LS 500h versions: one blue, one red; one with a $12,250 Luxury back seat package, one without; one in Oregon and one in Michigan. The blue car hit the register with a sticker of $107,355, including enhanced accident avoidance tech, an adaptive air suspension, 20-inch wheels, a massive head-up display, a 23-speaker Mark Levinson system, and a few trim upgrades. The red car was similarly equipped apart from optional 19's and swapping a $3,730 Interior Upgrade package that basically has the same front seat and trim upgrades as the $12,250 Luxury package, but leaves the back seat be. Both provided far more equipment for the money than the German competitors would.  lexus-ls500h-red-1 View 4 Photos Senior Editor, Green, John Beltz Snyder: I already miss the Matador Red LS 500h we had in Michigan. I had it for a full week and genuinely enjoyed it. It's a hybrid, and a really good one, providing efficiency when you want it and plenty of power when you need it. I found all the modes genuinely useful. Normal is well balanced. I used Eco when I was stuck in traffic to safe fuel. The Comfort mode helped keep my carsickness-prone wife happy when we ran around town together. Sport is very satisfying, but not so hardcore to make it a niche use case. Sport+ is the best way to enjoy the lovely song of the 3.5-liter V6, but still wasn't so extreme to relegate it to the briefest moments of passionate driving. Once I got used to the placement of the mode selector — on the right of the instrument cluster housing, which helps keep your eyes forward — I made good use of it. The LS hybrid has that trick transmission — a magical union of CVT and four-speed automatic — as part of the Multi-Stage Hybrid System that won our Tech of the Year award as tested in the Lexus LC 500h back in 2018. It's a sweet complement to the soulful V6 underhood, and provides a nice experience when left to its own devices or when using the paddle shifters to switch among 10 effective gear ratios. It works quickly, smoothly, and efficiently all at once.

2020 Lexus RX350 and RX450h debut with refreshed styling and updated tech

The 2020 Lexus RX350 and 450h made their debuts late last night, refreshing the fourth-gen model that made its debut back in 2015. The luxury crossover gets a number of updates, with the changes mostly focused on styling, tech and safety. The new three-row model carries over, too, with the second row sporting a set of captain's chairs rather than a full bench. The 2020 RX is set to go on sale in the U.S. in late August 2019. The updated model doesn't look all that different than the 2019 model, especially from the profile. That said, the front and rear fascias have both been smoothed out, taking cues from the handsome LC coupe and LS sedan. All the lines look a bit more sleek, with thinner headlights and L-shaped blades in the taillights, again similar to the LC and LS. There's a sharp crease toward the bottom of the RX that carries across the grille, rocker panel and rear bumper. The grille itself gets a new mesh pattern. The interior is mostly unchanged, with changes mostly focused on comfort rather than design. Three-row models now have more adjustment in the back row, and the second row gets the aforementioned captain's chairs. The infotainment system gets a much-needed update. While the frustrating-at-best touchpad interface is still present, the RX now gets a touchscreen, hopefully improving one of our major complaints with the system. The RX also gets Apple CarPlay and Android Auto, something long missing from Toyota and Lexus vehicles. Voice control can be used through Lexus' own system or using Apple Siri or Google Assistant. There's also a new USB port and a phone holder to keep things in place. Underneath the skin, the 2020 RX gets a revised suspension setup and extra chassis stiffness, the latter thanks in part to new welds, high-strength adhesives and stiffer stabilizer bars. The RX has what Lexus calls Active Cornering Assist and a re-tuned stability control system to mitigate understeer mid-corner. The shocks, too, are revised to improve ride comfort and handling. Lexus says the suspension updates should improve steering feel, too. Finally, there's a few updates to the RX's safety systems. The crossover comes with the latest version Lexus Safety System +, a safety suite that includes features like pre-collision warning, adaptive cruise control, lane-keeping assist and traffic-sign recognition. The new headlights have Lexus' BladeScan Type Adaptive Headlight System, or AHS.