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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 ATS Crimson Sport Edition is here for a limited run

The Cadillac ATS has been a well-received entry into the small sport sedan segment for General Motors' premium brand, but keeping the model fresh is an understandably high priority. A two-door coupe variant is on the way and should help keep interest up, but the line's volume leader is still expected to be the sedan. In order to keep awareness high and sales going, GM will need to lavish a little attention on its four-door, as well. That's where the Crimson Sport Edition comes in.
Crimson Red Metallic paint is the exterior highlight for this special-edition Cadillac, while the interior is complemented with a number of microsuede touchpoints, including the heated steering wheel and shifter. To this point, the car's rich burgundy finish has only been offered on CTS-V Coupe and Sport Wagon models, and brand spokesperson Donny Nordlicht tells Autoblog that this is the first time that the company has offered a microsuede wheel with heat. Four interior trims are also available, although all have been seen previously.
The Crimson Sport will be limited to production this spring, and the trimmings can be added to either the 2.0T Performance or the V6 Premium specifications. Both rear- and all-wheel drive will be available, as well. Prices start at $46,010 for the turbocharged model and $51,010 for the V6 including destination fees, which represents a premium of $2,990 for the extra equipment.

2020 Cadillac CT4 First Drive | Small shoes to fill

Following an existential crisis of fits, starts, headquarters moves and executive shakeups, Cadillac has itself a new luxury sedan, the CT4. It’s a convincing driverÂ’s car, less convincing as a luxury car, and seems a long shot to lure BMW, Audi or Mercedes owners into the Cadillac fold. For all the changes at Cadillac, that sure sounds familiar. The 2020 Cadillac CT4 is a redesigned ATS by another, equally unmemorable name. That includes an updated rear-drive chassis with eager, enthusiast-friendly tuning and 50/50 weight distribution – always among the ATSÂ’ top selling points. Styling is another winner, with crisp sheetmetal and CadillacÂ’s distinctive lighting signatures helping to differentiate this Yank from the international crowd. Cadillac is stretching so hard to cherry-pick the CT4Â’s competitors, it's possible they might slip a disc. We all remember the ATS as an able, rear-driven rival to the compact BMW 3 Series, Mercedes C-Class et al. But to paint the CT4 in a more competitive light – even as this sedan grows nearly 5 inches in length versus the ATS – Cadillac suddenly claims that its entry-level model, regardless of what it's now called, competes against subcompact, front-drive-based models like the BMW 2 Series Gran Coupe, Mercedes CLA-Class and Audi A3. Unfurling a tape measure reveals the truth: At a bit over 187 inches, the CT4 is actually longer than a 3 Series, C-Class, Audi A4 and every other major compact player. ItÂ’s a foot longer than an Audi A3. So, it's not a subcompact sedan, but there is one area where the CT4 does align with them – just not in a good way. The back seat is scrawny and hard-to-access, the result of its rear-wheel-drive platform and the sort of inefficient packaging that plagued the ATS. As such, it's better to think of the CT4, like the Genesis G70, as an affordable alternative to the roomier 3 Series, and other German compacts. And thereÂ’s nothing wrong with that. It starts at $33,990, undercutting the Germans by many thousands, and still boasts CadillacÂ’s greatest competitive strength: Smartly engineered ride-and-handling that matches up against the Euros with no excuses required. I drove the evident smart play in the CT4 lineup, the Premium Luxury 2.7 model, priced from $40,990, or $42,990 for the all-wheel-drive version I tested. (A Premium Luxury with the 237-horsepower 2.0T starts from $38,490, or $41,690 with AWD).