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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 Super Cruise wins the 2019 Autoblog Technology of the Year Award

Autoblog's 2019 Technology of the Year winner is Cadillac's Super Cruise. The SAE Level 2 semi-autonomous system allows for hands-free highway driving, reducing driver fatigue and improving safety. Additionally, Super Cruise packs in safeguards that force a driver to stay alert, bringing in a level of accountability not found in other Level 2 systems. Cadillac beat out Infiniti's VC Turbo technology and the EQ Boost 48-volt system from Mercedes-Benz, the other two finalists. General Motors mapped more than 130,000 miles of highways across the country, so Super Cruise always knows where you are. A camera on the steering column keeps an eye on the driver to make sure they're watching the road. Stray your gaze too long and the system forces you to take back over. Super Cruise has its limitations — it won't change lanes for you — but it is the most well-rounded and refined semi-autonomous system we've ever tested. There's no ping-pong effect as the car finds the center of the lane, and it always seems to leave a comfortable gap between you and the car ahead. Super Cruise launched in the CT6, which is ending production this year. But the sophisticated technology will migrate to other Cadillacs in 2020. The system is as easy to use as any other adaptive cruise control. Indicators in the instrument cluster and a light on the steering wheel indicate when and if the system is able to work. If you're off the defined grid, you can still use the car's regular adaptive cruise control — you just have to keep your hands on the wheel. Autoblog editors were also impressed with Cadillac's responsible approach to marketing the tech. The company doesn't even promote it as a Level 2 system, as it doesn't want to over-promise and under-deliver. Quite the opposite actually. Super Cruise simply works, and it works well. That's why it's our 2019 Technology of the Year. We'll present the award next week at the Detroit Auto Show. Come back for video of the event. Related Video:

Hennessy wastes no time in supercharging the 2015 Cadillac Escalade

The ink is still drying on the all-new 2015 Cadillac Escalade sales brochures, but that hasn't stopped Texas-based Hennessey Performance (HPE) from leaping out of the gate with its own high-performance variant. In stock form, the big fourth-generation Cadillac flagship arrives with a new small block naturally aspirated 6.2-liter Ecotec3 V8 delivering 420 horsepower and 460 pound-feet of torque. Fresh out of the showroom, the 5,900-pound SUV will sprint to 60 mph in 5.9 seconds.
While that is plenty fast for some owners, others don't want to be shamed by a 550 horsepower Mercedes-Benz GL63 AMG or a 510 horsepower Land Rover Range Rover Sport - both will leave the stock Escalade at a stoplight.
The team at HPE has come to the rescue with its HPE550 supercharger upgrade, which includes a belt-driven supercharger, air-to-water intercooler, recalibrated engine management software and a three-year/36,000 mile powertrain warranty. With 6 psi of boost, the direct-injected 6.2-liter is tuned to deliver an impressive 557 horsepower and 542 pound-feet of torque - gains of 32 percent and 18 percent, respectively, over stock. Although HPE isn't releasing performance figures as of yet, our math says that should be enough power to put the two Europeans in the Cadillac's rearview mirror. The company also offers a set of 20-inch lightweight H10 forged monoblock wheels, to further improve performance.