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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.

Recharge Wrap-up: Batty battery covers, Mercedes at Silvretta, new Hyundai Sonata Hybrid available in 2015

Apparently, Chevrolet Volt battery covers make suitable homes for bats. As part of an Eagle Scout project, Matthew Netherland created 30 bat houses out of scrapped Volt battery covers donated by Chevy. 22 of the bat houses will be set up near hydroelectric dams in Michigan. Each bat house will accommodate 100 bats, and divert the scrapped materials from the landfill. The battery covers also make great nesting boxes for wood ducks, which General Motors has previously set up at its Milford, Michigan Proving Ground. Last weekend was the Silvretta E-Auto Rally, which saw emissions-free vehicles cross the Montafon Mountains in Austria, including cars from Mercedes-Benz. These cars included the B-Class Electric Drive, B-Class F-Cell, SLS AMG Electric Drive and even the Smart Fortwo Electric Drive. Also on hand for the Silvretta Classic Rally was a V8-powered C111, a 1978 Mercedes-Benz 450 SLC and 300 SL Roadster. Read more in the press release, below. BMW has finalized pricing for the i8 in the US at $135,700 (plus $925 in destination charges). In addition to the base price tag, which we've known for a while, BMW Blog has the complete pricing guide with options and packages. Most of the i8 orders were the Pure Impulse World package, which includes various aesthetic upgrades. It also provides membership to the BMW i Pure Impulse Program, which allows you to "to enjoy innovative ideas and trends in a variety of areas, including home styling, culture, gourmet gastronomy, design and many more." Head over to BMW Blog for more information. The new generation of the Hyundai Sonata Hybrid will arrive later than the rest of the model lineup, confirms Car and Driver. While the gas-powered Sonatas get updated now for the 2015 model year, the Hybrid remains unchanged until late this year or early 2015, when it will arrive as a 2016 model. Hyundai is offering a 2015 Sonata Eco edition, but with 28 miles per gallon in the city and 38 mpg highway (32 combined), it's not quite as appealing as the current Sonata Hybrid's 36/40/38 figures. Read more here. In June, average US fuel economy was 25.5 miles per gallon, making it the fifth straight month above 25 mpg, according to University of Michigan. The average window sticker ratings from vehicles sold in June dropped slightly from 25.6 mpg in May. The year started at 24.9 mpg in January, and hasn't dropped below 25 mpg since.

2017 Mercedes-AMG C63 Coupe unleashed with 503 hp [w/video]

The Mercedes-AMG C63 Sedan is a truly fantastic car. The recently revealed Mercedes-Benz C-Class Coupe is a seriously pretty two-door. Combine the two, and you get the 2017 Mercedes-AMG C63 Coupe that'll debut at the Frankfurt Motor Show next month. The AMG C63 Coupe takes everything we love about the sedan and puts it into the sleeker coupe body. It's equal parts aggression and elegance, and it's got the performance and luxury substance to back up both of those attributes. Under the hood is the same twin-turbo, 4.0-liter V8 as the C63 sedan, with two different states of tune. Standard C63 models get 469 horsepower and 479 pound-feet of torque, while the C63 S ups those numbers to 503 and 516, respectively. Running to 60 miles per hour takes 3.9 seconds in the standard car or 3.8 seconds with the S, and the coupes are limited to either 155 or 180 miles per hour, depending on specification. Both versions of the C63 use Mercedes' AMG Speedshift seven-speed automatic transmission. Inside, it's all C-Class Coupe, which is to say, it's lovely. Same goes for all of the ride and handling bits – there's no doubt in our mind that the C63 Coupe will be just as much fun as its four-door sibling on both road and track. We'll see the AMG C63 Coupe next month, but American deliveries won't start until the summer of 2016, hence the 2017 model year designation. We're licking our chops in anticipation. The sportiest C-Class ever Mercedes-AMG is setting another milestone in the brand's history: the new 2017 AMG C63 Coupe is the next step on the way to more technical and visual distinctiveness. The far-reaching technical modifications are evident at first sight: strikingly flared front and rear wheel arches, an increased track width and larger wheels give the C63 Coupe a muscular look while also providing a basis for highly agile longitudinal and lateral dynamics. The brand's typical "Driving Performance" is also taken to new heights with the C63 Coupe. The AMG 4.0-liter V8 biturbo engine, with 469 hp in standard trim or 503 hp in the C63 S, is a completely in-house development from Affalterbach. In addition, the sophisticated AMG RIDE CONTROL suspension with electronically controlled shock absorbers, the set-up of the AMG DYNAMIC SELECT transmission modes, the rear-axle limited-slip differential and the dynamic engine mounts have all been developed by AMG. The C-Class is Mercedes-AMG's best-selling model and forms the backbone of the company's success.