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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.

Cadillac CTS wins 2014 Motor Trend Car of the Year [w/video]

For the second time, the Cadillac CTS has been named Motor Trend's Car of the Year. After winning the COTY crown for 2008, the new-for-2014 CTS outdid the other two finalists for Car of the Year honors, the Mazda3 and its corporate cousin, the Chevrolet Corvette Stingray.
What's notable about the Caddy's victory, though, is how it simply brushed off its competition. Both the Mercedes-Benz E-Class and BMW 5 Series failed to make the finalist's bracket, leaving the CTS to claim victory. "It had to beat [Mercedes and BMW] on style, on performance, on comfort, and on quality. It has," Motor Trend said in its COTY recap for the CTS.
The team at Motor Trend praised the CTS chassis, calling it "fantastic," and citing weight advantage the Caddy has over the competition. There was also praise heaped on the car's engines, with the 2.0-liter, turbocharged four-cylinder getting nods of approval from the MT team. The team also raved about the VSport model and its twin-turbocharged V6, magnetic shocks and other performance accoutrements.

Lincoln Aviator vs Cadillac XT6 | How they compare on paper

There have been big, three-row family crossovers for quite a while now, but until recently the luxury market hasn't fully embraced them. Sure, you could literally get one with a third row, but unless you were a kid, chances are the term "dungeon-like" was going to be tossed around. Things are changing now, however, as new and redesigned entries are starting to hit the market. We've recently had a chance to get our first drives of the 2020 Lincoln Aviator and 2020 Cadillac XT6, two all-new three-row crossovers from American luxury brands. We also got a turn behind the wheel of the updated 2020 Volvo XC90. However, since none of our editors have yet to drive to drive them all, we wanted to see how they compare on paper, examining their engine specs and interior dimensions. We also included the 2020 Acura MDX, the original three-row luxury crossover, which continues to sell well despite approaching the end of its current generation. That it offers a hybrid model makes it that much more applicable given the Aviator and XC90 also offer gasoline-electric powertrains, albeit of the plug-in variety. 3 Row Luxury Crossovers Powertrains View 1 Photos Non-hybrid MDX has a 5,000-pound max tow rating. How do their performance and fuel economy compare? This one is absolutely no contest. The 400-horsepower Lincoln blows away its competitors despite having a price tag that's similar to the 310-horsepower Cadillac and in between the XC90's T5 and T6 models. At least the Acura is considerably cheaper. Besides the eye-popping output, the estimated 0-60-mph time of 5.5 seconds (gleaned from the mechanically similar Ford Explorer ST) is appreciably quicker than the others. Now, fuel economy is a bit lower, but the efficiency of Volvo's four-cylinder engines are likely more susceptible to varying due to driver differences. It should also be noted that the Cadillac gets the same combined fuel economy estimate as the Aviator despite having 90 fewer horses and 144 fewer pound-feet of torque. Just one of the ways where the XT6's prospects dim in the presence of its cross-Michigan rival. The Cadillac is also not available as a hybrid model. The others are, but are disparate. The Lincoln Aviator Grand Touring and Volvo XC90 T8 are similar in concept: range-topping models that are as much about adding performance as they are fuel economy. Their hefty price tags certainly reflect that as well.