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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.

2016 Formula 1 Chinese Grand Prix recap: another wild show on and off track

Normally we use this space to provide a lengthy recap of the weekend's Formula 1 race, but we're going to try something different since most folks reading this know what happened at the Shanghai International Circuit on Sunday. Instead, we'll alight on what we saw as the big issues in and around the race. Let us know what you think in Comments. Proper qualifying is back. Thank goodness. It only took a month of embarrassment to fix it. And so is passing! For the third race in a row, big performance improvements at the ten teams behind Mercedes-AMG Petronas and a wider tire selection at this race graced us with opening stints filled with dicing cars. Seeing the McLarens on screen doesn't make us cringe. Manor doesn't only make the global feed when it's being lapped. We've been complaining about parade races for so long that we forgot excitement was possible without rain or wholesale regulation changes. Yes, Mercedes is still the king of the jungle, but there are some other proper midfield beasts on the hunt, too. Malfunctions up and down the grid did help the show in Shanghai, like Lewis Hamilton suffering perpetual troubles, Nico Hulkenberg's runaway front wheel which red-flagged Q2, and Sebastian Vettel's and Kimi Raikkonen's flubbed hot laps in Q3 that let Daniel Ricciardo slip by into second on the grid. Come race day things went all Grand Theft Auto at Turn 1 on the opening lap, sending some of the best cars to the pits. Then came Ricciardo's puncture while leading, then came the Safety Car – all by Lap 5. Nico Rosberg got 38 seconds of airtime on the way to victory – at the start and the finish, and that happened to be his margin of victory, too – otherwise he was a ghost. Everyone else was struggling and juggling. Rosberg's win at the Bahrain Grand Prix put the German at five consecutive victories going back to last year's Mexican Grand Prix. The history books show that any driver who's won five straight contests has gone on to win the championship. With his triumph in China, the German has won the season's first three races, the history books again show that the other nine drivers who've pulled that off have gone on to win the championship. Rosberg, 36 points ahead of his teammate in the standings, is having none of it. He said of the other victors, "But they didn't have Lewis Hamilton as their team-mate." Perhaps Mercedes was right not to make an engine deal with Red Bull last season.

Brabus-tuned Mercedes G500 4x4 is an over-powered off-roader

Even from the factory, the Mercedes-Benz G500 4x42 is an off-road bruiser that's good for 415 horsepower and 450 pound-feet of torque. Apparently, those already meaty figures just aren't enough for the power-hungry folks at Brabus. The company's new tuning kit for the twin-turbo 4.0-liter V8 pushes things up to 493 hp and a prodigious 523 lb-ft of twist. On top of the grunt, buyers can order a heap of extras to make the SUV look a whole lot meaner. They're all going on display at the 2015 Frankfurt Motor Show. The heart of Brabus' power upgrade is its custom control module to tweak the engine management, and the result is adjusted boost pressure and the mapping for the fuel injection and ignition. There's also a stainless steel exhaust with butterflies that vary between "Sport" and an appropriately named "Coming Home" mode at the press of a button. The chrome tailpipes add an extra visual pop, too. The G500 4x42 rides on off-road tires, and even after Brabus' big boost, it's not lightning quick. The run to 62 miles per hour now takes 6.9 seconds, and the rubber also mandates a top speed limited to 130 mph. For buyers really looking to show off, Brabus has a wild body kit for the G500, too. It includes new lower bumpers and polished underbody guards. Meanwhile, the hood grows a scoop, and the headlight update adds black-tinted Xenon lights with LED turn signals to replace the units usually on the fenders. Inside, a mix of quilted leather, Alcantara and bright red stitches finishes off the brash tweaks. World premiere at the IAA 2015 BRABUS refines the Mercedes G 500 4x42 368 kW / 500 HP, 710 Nm of torque and exclusive BRABUS luxury appointments for the extreme off-roader Mercedes G 500 4x42: the new special model of the G-Class is designed for maximum off-road capabilities and offers the perfect basis for exclusive refinement a la BRABUS (Brabus-Allee, D-46240 Bottrop, phone +49 / (0) 2041 / 777-0, fax +49 / (0) 2041 / 777 111, Internet www.brabus.com). This includes an increase in the power output of the twin-turbo V8 to 368 kW / 500 HP (493 bhp) and a boost in its peak torque to 710 Nm (523 lb-ft). As a result, the tuned off-roader sprints from rest to 100 km/h (62 mph) in just 6.9 seconds. Due to the all-out off-road tires, the top speed is limited electronically to 210 km/h (130 mph). The spectacular appearance of the all-wheel-drive car is bolstered further by a high-end BRABUS paint finish and targeted BRABUS bodywork modifications.