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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.

Aston Martin and Daimler continue talks on SUV project, CEO required

The Aston Martin Lagonda SUV concept revealed at the 2009 Geneva Motor Show didn't earn the plaudits the company is used to when it reveals new models, and it has lived an uncertain life ever since. Thought to have been scrapped along with the entire revival of the Lagonda brand, then thought to have been resurrected due to Chinese, Middle Eastern and Russian demand, another year passed before we heard more definitive talk about an Aston Martin expansion when AutoCar reported that the Lagonda could be built on one of Mercedes-Benz's AMG SUV platforms.
A report in Automotive News Europe indicates plans have gotten serious, its unnamed sources saying that the English carmaker is talking to Daimler "to extend their cooperation to building an SUV." Neither Daimler, Aston Martin nor Investindustrial, the managing partner among Aston Martin's ownership consortium, would comment. But with Investindustrial having pledged to expand the range, competitors like Bentley, Maserati and Lamborghini getting into the SUV racket and clear demand from current and future customers, it's easy to believe Aston Martin is working hard to put the pieces together.
One further potential bump on the road to an Aston SUV is the company's search for a new CEO. Ulrich Bez relinquished to top spot at the company at the end of 2013, and Aston reportedly will not finalize its model strategy without a new CEO in place.

Brabus luxes up new Mercedes V-Class

Looking for a luxury coach to get you around town in style and comfort, but don't need anything as big as a Sprinter? Mercedes will gladly point you towards the smaller V-Class, trading Stateside as the Metris. And now Brabus has released a full array of customization options for the van as well. The list of modifications available from the venerable Benz tuner include an aero kit to give the van a sleeker look while reducing front-end lift, a full complement of 18- and 19-inch wheel options, a retuned suspension, engine enhancements, exhaust upgrade, and a fully refitted interior. The first-class cabin on this show vehicle has been reupholstered in leather and Alcantara, offset by wood and carbon-fiber trim, and a complete entertainment system. It includes a pair of 15.6-inch LCD screens that drop from the headliner and WiFi. Finally, there's a touchpad integrated into the interior C-pillars to operate the system as well as the lamps, heated seats, power windows and curtains, and the sliding doors. Accommodation is clearly the emphasis here. But Brabus being Brabus, it has also optimized the BlueTec four-cylinder turbo diesel engine to produce 44 more horsepower and 52 pound-feet more torque. With output now up to 232 hp and 376 lb-ft, the van will reach 62 miles per hour from a standstill in 8.8 seconds and top out at 130 mph – and look that much slicker in the process. Related Video: Engine tuning, exclusive looks and entertainment: BRABUS Exclusive Program for the new Mercedes V-Class The new Mercedes V-Class as a sporty-elegant jack-of-all-trades: in a world premiere, BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 / (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, internet www.brabus.com) presents the exclusive refinement program for the new Mercedes V-Class. BRABUS upgrades the people mover with powerful engine tuning, an exclusive appearance package, tailor-made wheels and an individual entertainment concept. A sporty-elegant design is the trademark of the BRABUS aerodynamic-enhancement kit for the new Mercedes V-Class and Vito. All components are manufactured from PUR in OEM quality, giving them a precise fit and making them easy to paint. To give the vehicle an even more distinctive face, the BRABUS designers have developed attachments for the side air intakes, which can be complemented with auxiliary LED side markers, and a front spoiler that attaches to the lower section of the bumper.