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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 clears camo off the XT3 revealing grille, lighting details

Up until now, every Cadillac XT3 we've seen has been buried under covers and vinyl wraps, but one of our spy photographers recently captured a group of them with significantly less camouflage. As a result, we finally get a relatively clear picture of what the car will look like. The nose blends the look of current Cadillacs with cues from last year's Escala concept. The headlights still appear to stretch up into the top of the fenders like its production brethren, but they don't descend as far down the front fascia, a hint of Escala influence. The grille also features more of egg-crate mesh like that Cadillac concept. In profile, we can see evidence of the XT3's smaller size compared with the XT5, mainly in the lack of any glass area behind the rear door. Other evidence of the smaller size is that our spy photographer reports the cars were being tested alongside the BMW X3 and Mercedes-Benz GLC-Class. The profile also shows that the XT3 will have a hard-edged rear end with a rakish hatch. At the back, there isn't a whole lot to report, but the taillights look like they'll be interesting. There appears to be a horizontal element in the middle of the hatch similar to what we've seen on the Escala and the refreshed XTS. We can also see some lights up on the C-pillar, which indicates that the XT3 will also have tall vertical elements up those pillars like on the Escalade. We expect the XT3 to show up late in 2018. It will likely be powered by a turbocharged four-cylinder of some sort, and because it will probably be based on an existing GM crossover or sedan platform, it will probably have front-wheel drive and/or a front-drive based all-wheel-drive system. Related Video: Featured Gallery Cadillac XT4 Spy Shots View 13 Photos Image Credit: Brian Williams Spy Photos Cadillac Crossover SUV Luxury cadillac xt3

2020 Cadillac CT6 losing the 3.0-liter TT V6?

In April we learned Cadillac would no longer offer the 2.0-liter four-cylinder on the CT6. The same day we heard the news, the CT6 configurator showed that engine option gone, leaving three engines on the menu. That menu could lose another option come 2020, according to a report in AutoVerdict. The site says it got an order guide for the 2020 CT6, and the 3.0-liter twin-turbo V6 won't make it to the new year. That engine was once the top-tier choice, since eclipsed by the detuned 4.2-liter twin-turbo Blackwing V8 imminently available on the Platinum trim. AutoVerdict also read in the order guide that the horsepower figures haven't been finalized for next year's model. As it stands, the entry-level 3.6-liter six-cylinder makes 335 horsepower and 284 pound-feet of torque, the 3.0-liter twin-turbo V6 produces 404 hp and 400 lb-ft, and the 4.2-liter V8 ginning up 500 hp and 574 lb-ft when it arrives. Retiring the middle option ostensibly puts a big ol' gap in output and pricing between the two models left. Right now $24,200 separates the entry-level Premium Luxury from the Platinum. However, since the present Platinum uses the 3.0-liter, it's safe to guess that the 4.2-liter V8 will cost more, creating a larger gap. The Sport model in between uses the 3.0-liter, too. Perhaps that goes away, or maybe it stays and gets further cosmetic upgrades to give it more edge and a higher price. Another change coming to the 2020 CT6 is its induction into Cadillac's metric-unit torque-based badging system. This, remember, converts pound-foot torque into Newton-meters, then rounds up to the nearest 50. That means the 3.0-liter V6 will wear a 400 badge, the 4.2-liter V8 gets an 800T badge - the T standing for turbo. The year's been full of engine rationalizations at General Motors. Theories about the CT6 dropping the 2.0-liter figured it might have been about making space above the CT5, or guaranteeing supply for other GM models that use the engine, like the Cadillac XT4. The folks at AutoVerdict suspect the 3.0-liter TTV6 could be making the move to the CT5, and to the hot-headed CT4-V we'll be getting a look at come the end of this month. Related Video: