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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.

Shatner's Rivet motorcycle to enter limited production with CTS-V engine [w/video]

William Shatner has entertained the world for decades, from playing Captain Kirk on Star Trek to covering songs like Rocket Man and Common People. Now in his 80s, Billy Shatz has embarked on one of his weirdest projects yet: helping to design the wild Rivet One trike with motorcycle fabrication company American Wrench. Now, you can order one too with power as crazy as the three-wheeler's design. We last saw the Rivet One's aluminum body with the styling like a menacing, art-deco easy chair a few months ago, but now Shatner has started talking about the trike's powerplant, which is based around the heart of a Cadillac CTS-V. "It's a beast with advanced guts. It's powered by an all-aluminum, computer-controlled, supercharged and intercooled V8 engine – producing over 500 HP," Shatner said to Gizmag. Keep an eye out because Shatner intends to captain the Rivet One from Chicago to Los Angeles later this year. Also, if you want a ride like Captain James T. Kirk, the company is taking requests for the trike, made on a build-to-order basis after completing Shatner's job, according to Gizmag. Prices aren't announced yet but expect the number to be as out of this world as a voyage of the Enterprise. The video below provides a further look at the Rivet One's unconventional design. Superheroes Wanted - A Look At The Machine from Rivet on Vimeo. News Source: Gizmag, Rivet via VimeoImage Credit: Rivet Motors Celebrities Design/Style Cadillac Motorcycle Performance trike William Shatner american wrench

Expect greater differentiation in GM's next-generation SUVs

General Motors says its next-generation Chevrolet Tahoe, Suburban, GMC Yukon and Cadillac Escalade models will offer shoppers improved interior differentiation. Car and Driver recently caught up with Chris Hilts, GM's creative manager of interior design, who said that the cabins will all feature unique instrument panels, consoles, center stacks and switchgear moving forward. Apparently GM is now aware that consumers may be bothered by the fact that today's $85,000 Escalade has effectively the same cabin as a $45,000 Tahoe. Hilts says SUV buyers want more refinement than their pickup purchasing counterparts - and those same buyers also want their SUVs to have more exterior differentiation between the company's Silverado and Sierra pickup lines. Shocking.
That all sounds good to us, but we've heard this song and dance before. GM made big waves about how different the new-for-2013 Silverado and Sierra would look from each other, but judging by what we've seen so far, GM's stylists are painting in shades rather than with the full spectrum. For more on the what to expect out of GM's new SUVs, click on the C/D link below.