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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.

2014 Mercedes-Benz C63 AMG Edition 507 still lights our fire

The current Mercedes-Benz C63 AMG may be in the autumn of its years, but it's still one of our very favorite sport sedans. Ever. Yes, its paddle-shift transmission may not always follow orders, but with stupendous levels of thrust from its charismatic naturally aspirated 6.2-liter V8, ebullient rear-wheel-drive dynamics and that noise, we frankly don't care that it's getting on a bit.
As a sendoff of sorts for the current generation, Mercedes-Benz has just introduced a new Edition 507 model at the Geneva Motor Show, with 507 horsepower and 450 pound-feet of torque - an increase of 56 horses over the standard car. Mercedes credits the substitution of low-mass internals from the SLS AMG gullwing for the power bump, a tactic shared with the AMG Development Package upgrade that has been subsumed by this Edition 507. 0-60 is quoted at 4.1 seconds and top speed at 174 mph.
The Edition 507 borrows its aluminum hood from the C63 AMG Black Series Coupe, along with spidery new 19-inch wheels in either titanium gray finish or matte black with shiny rim flanges. As seen on our gallery car above, a sports striping package is also featured, as are glossy black grille, daytime running lamps, spoiler and mirror caps.

Mercedes-Benz USA confirms relocation to Atlanta

Porsche, you no longer have Atlanta to yourself. Mercedes-Benz USA has confirmed that it will be moving its corporate headquarters (shown above) from Montvale, NJ, to Georgia's most populous city. This is the second high-profile corporate relocation in the past year, as Mercedes follows in the footsteps of Toyota, which announced its relocation from California to Texas back in April (Subaru also announced a relocation, but it was just four miles away from its old offices). According to the German company, executives and their staff will relocate to an interim facility in the city's Central Perimeter until a brand-new, long-term home is completed in 2017. Around 1,000 employees will be impacted by the move, although Mercedes didn't mention if any employees would be let go as a result of the relocation. The company won't be abandoning New Jersey completely, as it will retain "several operational areas" in both Montvale and Robbinsville, NJ. As Mercedes USA CEO Steve Cannon explains, there are a number of good reasons for the company's relocation. "Atlanta is a premier city which places us closer to our ever-growing Southeast customer base, our port in Brunswick, Georgia, and to Mercedes-Benz US International, our Alabama manufacturing facility, which accounts for half of the vehicles we sell here in the US," Cannon said in a statement. "For our employees, Atlanta offers a strong quality of life, terrific schools and wonderful cultural and recreational opportunities." Mercedes-Benz USA Announces Move of Corporate Headquarters to Atlanta Several operational areas to remain in New Jersey including Parts Distribution Center and Regional Office January 06, 2015 - MONTVALE, N.J. Mercedes-Benz USA (MBUSA) today announced that it will relocate its corporate headquarters to Atlanta, Georgia, in a move designed to better serve its growing customer base and strengthen the company's position for long-term, sustainable growth. MBUSA executives and staff will relocate from its primary facility in Montvale, New Jersey, to a temporary facility in Atlanta's Central Perimeter on an interim basis. The company will construct a new, state-of-the-art headquarters expected to be completed in early 2017. MBUSA plans to begin moving employees starting in July 2015. The move, which will affect approximately 1,000 employees, will be phased to help minimize any disruption to business operations. Several operational areas will remain in both Montvale and Robbinsville, New Jersey.