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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.

GM recalling 54k Cadillac SRX, HD pickup models

There are more recalls to report General Motors, but these latest actions pertain to newer examples of the Cadillac SRX, Chevrolet Silverado HD and GMC Sierra HD. With so much scrutiny on the company's recall strategy, GM is under increasing pressure to call in defective models more quickly, and it appears to be doing so here.
Here in the US, the automaker is recalling 50,571 Cadillac SRX crossovers from the 2013 model year fitted with the 3.6-liter V6 because the transmission control module programming can cause a three- or four-second lag in acceleration at low speeds. The explanation filed with the National Highway Traffic Safety Administration states, "if the following sequence occurs within two seconds: during an upshift from first to second gear (8-10 mph), the driver then brakes the vehicle to less than 5 mph, and then accelerates again," the delay can occur. According to Automotive News, the recall effects 56,400 vehicles worldwide, and the company is not aware of any crashes caused by the problem. The fix consists of a transmission control module (TCM) reflash.
In a separate recall, GM is repairing 51 Chevrolet Silverado HD and GMC Sierra HD pickups from the 2015 model year in the US. In vehicles with diesel engines and dual fuel tanks, the nuts that connect the fuel pipe to each side of the transfer pump between the tanks may be improperly torqued, which could cause a fuel leak. Obviously, this could be a fire hazard. The remedy is simply tightening the hardware. According to GM spokesperson Alan Adler, there have been no fires actually caused by the potential leak. "Only 21 of the trucks are in customer possession and they can be fixed anytime because there are no parts involved. The others are being fixed at dealerships," Adler said in an email to Autoblog.

Cadillac Super Cruise gets system enhancements, more compatible highways

Cadillac is updating Super Cruise to make it available to use on more highways, and it will offer better performance, too. Previously, Super Cruise worked on about 130,000 miles of highways across the continent. This update expands that to 200,000 miles. That's because GM has mapped that many more miles to be compatible with its lidar mapping system. As for the performance update, Cadillac says there will be enhancements to the driver monitoring system. That's the key feature that separates Super Cruise from all the other systems out there, making it a truly hands-free experience. It's able to quickly tell whether your eyes are on the road, and it reacts accordingly. We asked for details about the improvements, but all Cadillac would tell us is that there are "slight refinements to the driver attention system to even more accurately detect driver attention." Perhaps it's related to reports of sun-related issues plaguing the infrared monitoring camera. We can't tell you for sure. As for the extra miles, Cadillac says some added highways now include limited intersections and traffic control devices. Basically, there may be a stoplight or some cross traffic thrown into the mix now. Since GM has actually gone and mapped these areas, the car will tell you to take back control when approaching a railroad crossing, pedestrian crossing, stoplight or stop sign. Cadillac included a map (above) depicting the original and new Super Cruise compatible highways. You'll notice there are a lot more highways in the midwest and southeast, in addition to almost being able to cross the entirety of Canada now. Things are still a bit sparse in the western part of the country, but there aren't as many highways out there anyway. Owners of 2018 and 2019 Cadillac CT6s can expect to get the upgrade, but it's not as easy as you may think. Folks will have to take their CT6 in to the Cadillac dealer, where the "system enhancement" will take place. However, that enhancement doesn't include the additional miles. Cadillac says that update will be sent out over-the-air throughout the summer and fall. Updates for Super Cruise seem to be coming out with regularity. Last year Cadillac updated the system for easier activation, better lane placement (for passing large vehicles) and added gauge cluster messages for more information. We happen to love using the technology here at Autoblog, and gave it our 2019 Technology of the Year award.