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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: The standard of what?

Cadillac's tagline "Standard of the World" goes back to 1908 when it won the Dewar Trophy. While you might think that the moniker and the trophy have something to do with a feat of racing and daring-do against a cadre of British, French, and German marques, it's nothing of the sort. Rather, Cadillac achieved the trophy because of interchangeable parts. The parts they were producing back then were so well-made that Henry Leland, who established Cadillac, was able to disassemble three Model Ks, mix up the parts, and then put together three functioning cars. This amazed the Brits who handed him the trophy, and the "Standard of the World" was born. During the past several months, Cadillac has been producing news releases that would seem as though the company is the Standard of the World: "Cadillac Global Sales Rise 44.2 percent in January ... 18 percent in February ... 22.1 percent in March. . .40.9 percent in April ... 33.8 percent in May ... 7.2 percent in June." Like the Dewar Trophy being about manufacturing not performance, things are not necessarily what they seem. That is, Cadillac's growth is predicated on performance in China, not in the US. Through June, its China sales are 80,357 vehicles for the first five months of 2017, versus 72,073 in the US. The China number is a 75.4-percent year-over-year increase while the US number is a 1.6-percent decrease. For the entire globe, Cadillac has sold 164,174 vehicles. Of them, 65,250 were the XT5. That was followed by the ATS, at 34,277 units. In the US, the XT5 is doing reasonably well, as it has moved 29,798 units during the first six months. The ATS, conversely, is doing not particularly well, as it is down 26.2 percent with sales at just 7,209 for the year so far. To put that into some sort of context, know that Cadillac has sold 7,370 copies of the generally derided XTS, which is down 24.7 percent. The CTS is down 36 percent at 5,059 units, and the only other car in the lineup (we'll pretend that the ELR doesn't exist anymore and it shortly won't), the CT6 sedan, is up 172.7 percent – but they have sold only 5,397 CT6s. While Caddy talks a good game about competing with the likes of the BMW 5 Series and the Mercedes E-Class, know that those two sedans have been sold 17,036 and 20,783 times this year in the US respectively. So what is Cadillac chief Johan de Nysschen to do? According to Reuters, it is to cull the lineup.

The CadMad shooting brake Eldorado Brougham-Nomad cross is up for auction

The CadMad custom 1959 Cadillac Eldorado Brougham is the coolest car crossing the block at the Scottsdale Barrett-Jackson auction. All arguments to the contrary are wrong and can be redirected straight to the gallery above. This 16-year project built by Super Rides and commissioned by the late Steve Barton won the Don Ridler Memorial Award at the 2019 Detroit Autorama, which goes to the custom build that shows the best creativity, engineering and quality workmanship. All of those qualities are on full display in this Eldorado Brougham-Nomad mashup. Just so we’re all on the same page, a 1959 Cadillac Eldorado Brougham was no normal Cadillac at the time. The sedanÂ’s exterior design is thanks to Pininfarina, as Cadillac had the Italian design company tweak its styling. It resulted in a much more subdued Cadillac than the rest of Caddy's giant fin-tastic designs of the decade. Only 200 were made over the course of a couple years, and they remain some of the rarest production Cadillacs to this day. The “Fawntana Rose” Cadillac standing before us is a shooting brake interpretation of that famous sedan. It has lost 18 inches in overall length, four inches in width and the rear doors have been completely eliminated. A Chevy Nomad roof was shortened by a couple inches and grafted onto the bodywork. The builders say that every last piece of sheet metal was modified for this build. Still, thereÂ’s still no mistaking it for a Cadillac. The chrome bumpers and lights were left mostly untouched, and the small fins were retained, as well. That Nomad roof was painted in Titanium Silver for contrast, the same silver thatÂ’s used on the new Ford GT. Things only improve when you open the hood. A 632-cubic-inch twin-turbo V8 built by Nelson Racing Engines (NRE) powers the shooting brake. Most of the time (on 91 octane fuel), it produces around 1,000 horsepower and 950 pound-feet of torque. Feed it 112 octane fuel and NRE claims itÂ’s capable of producing upwards of 2,500 horsepower. Yowza. A four-speed automatic transmission and strengthened Corvette transaxle somehow attempts to put the power down to the rear wheels. The seats are reflective of the amount of power this car puts down — 2012 Cadillac CTS-V buckets were used and modified with mauve-colored upholstery. All the trim was hand-painted, including the wood-grain flooring in back and is meant to “mimic the African Wenge and Tigerwood Maple.”  The time and effort that went into this built is truly astounding.