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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.

Consumer Reports loves the 2014 Cadillac CTS

Our first drive of the 2014 Cadillac CTS was just published today... we really liked the Vsport version. And Consumer Reports has some even stronger words of praise for the all-new luxury sedan. We already knew that Cadillac had stepped up its game with the third-gen CTS, but CR bluntly states that the sedan drives better than its German luxury counterparts.
While CR shows plenty of love for the new CTS, the outlet still takes issue with some of the in-car technology including the CUE infotainment system - no surprise there. The testers' offer all manner of positive comments where the impressive handling capabilities of the sedan are concerned, with lots of drifting around CR's private test facility in evidence to bear them out. Scroll down to watch the CTS get put through its paces.

2020 Cadillac CT6-V First Drive | A new kind of V

One of the weird tidbits of car news in the past year was the change in naming for the 2020 Cadillac CT6-V. When it was first revealed, it was called V-Sport, the term previously used for Cadillacs with more moderate performance upgrades than the full-blown V cars that possessed massive power outputs and serious track-going capabilities. But then, before the car in question went on sale, Cadillac changed the name to match the equally moderately sporty CT4-V and CT5-V that officially downgraded the V name. So what should we make of this CT6-V, then? Is it a hardcore performance machine like the old V cars? Or is it what we’re expecting of the new V cars: a lightly upgraded version of the base car that isnÂ’t particularly distinguished? As it turns out, the CT6-V sits between these two extremes to create a car thatÂ’s involving and exciting for the driver without compromising the CT6Â’s refinement and luxury. Mechanically, the CT6-V is ultimately closer to its full-bore V predecessors. The highlight is the “Blackwing” twin-turbocharged 4.2-liter V8 that makes 550 horsepower and 640 pound-feet of torque. Besides giving the engine prodigious output, Cadillac borrowed some pages from the AMG handbook: the turbocharger is nestled in between the cylinder heads, just like the current 4.0-liter AMG V8, and each engine is hand-built start to finish by one of six engine builders. The builderÂ’s name is even featured in the engine bay. TheyÂ’re special details that fit the idea of the old V cars, but the fact that a version of the same engine is in the Platinum CT6 does make its inclusion in the CT6-V seem less special, even if its output is notably less at 500 horsepower and 574 pound-feet of torque. Setting aside the details, the engine performs well in the real world. ItÂ’s astonishingly smooth, exactly what you want from a fast flagship. It also emits a unique exhaust note thatÂ’s both raspy and growly. You wonÂ’t mistake it for a pushrod powerplant. The power and torque provide a prominent push at all points in the rev band after a brief moment for the turbos to spool up. ItÂ’s just a shame there isnÂ’t much of a rev band, as the engine redlines at 6,000 rpm, which is easy to hit thanks to the engineÂ’s creamy character. ItÂ’s so low one wonders why Cadillac bothered developing a double-overhead-cam engine at all. The V8 is coupled to a 10-speed automatic transmission and all-wheel drive. The 10-speed is perfectly fine when cruising around town.