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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.

Nearly 700,000 Toyotas and Lexuses named in fuel pump recall

In an announcement posted to its corporate press room, Toyota made known a voluntary safety recall on select 2018 and 2019 Toyota and Lexus models. The recall includes roughly 696,000 vehicles and deals with a fuel pump that might stop working. An internal investigation into the issue is under way.  Affected rides include the Toyota 4Runner, Camry, Highlander, Land Cruiser, Sequoia, Sienna, Tacoma, Avalon, Corolla, and Tundra, as well as the Lexus LS 500, LC 500, RC 350, RC 300, GS 350, IS 300, ES 350, LX 570, GX 460, RX 350 NX 300, RX 350L, and GS 300. The Avalon, Corolla, NX 300, RX 350L, and GS 300 are restricted to 2019 model years, while the others are 2018 and 2019 model years. The potential danger in this issue is pretty obvious. Should the fuel pump stop, the vehicles could sputter, stall, and come to a stop, likely without the ability to restart the cars. Toyota notes warning lights and messages would display should this occur, but by then, it'd be too late. Although Toyota made the announcement this week, the investigation is not yet complete, and therefore, a fix has not yet been specified. The resolution, when determined, will come free of charge to affected customers. Toyota plans to send out notifications for affected vehicles in mid-March. 

2021 Lexus ES adds AWD and Black Line Special Edition to lineup

Toyota engineered a Camry with all-wheel drive, so transferring it over to the Lexus only makes sense. The 2021 Lexus ES 250 AWD debuts today, adding all-wheel power to the ES for the first time. Lexus teased the possibility of an all-wheel-drive model at this generation’s launch, but it hasnÂ’t been officially announced until now. Just like the newly-available Camry AWD, this one is exclusively paired with a four-cylinder engine. Besides the Hybrid model, the ES was only offered with a naturally aspirated V6. Now the 2.5-liter four-cylinder migrates to the Lexus with 203 horsepower and 182 pound-feet of torque. ItÂ’s a shame that Lexus hasnÂ’t paired the all-wheel-drive system with the more powerful V6, but it was a task and a half to re-work the Camry with this system already.  You can read all about the engineering behind it in our Camry AWD First Drive. The Lexus uses the same “Dynamic Torque Control” system thatÂ’s found in the Camry to dole out the power rearward. ItÂ’s scanning for front wheel slippage, driver steering input and throttle input, then sending up to 50 percent of the power rearward when needed. The “Torque Control” part of it is not true torque vectoring, but ToyotaÂ’s system can pinch the brakes of the inner wheel when cornering to create the sensation of torque vectoring. Lexus says the ES 250 AWD has the same legroom, trunk room, ride comfort, cabin quietness and vehicle agility as any other Lexus ES. The Camry AWD has its rear seats raised by 10 mm, but thatÂ’s not the case for the ES, as Lexus claims it has the same rear hip point as the front-wheel-drive car. ThereÂ’s a small benefit in fuel economy dropping down to the slower four-cylinder, as the 250 AWD gets 28 mpg combined, whereas the 350 returns 26 mpg combined. If you want more performance, Lexus is making an F Sport version of the ES 250 AWD. 2021 Lexus ES 350 Black Line Special Edition View 8 Photos The 2021 Lexus ES 350 Black Line Special Edition also debuts today. ItÂ’s a limited-run ES based on the F Sport model that essentially amounts to a fancy appearance package. Lexus adds black F Sport wheels with black lug nuts, a black rear lip spoiler and blacked-out side mirrors. There are three exterior colors to choose from: Ultrasonic Blue Mica 2.0, Obsidian and Ultra White. Pictured in the gallery above is the Blue Mica and Ultra White. We like the blue. You also get a two-tone interior, mixing Obsidian and Ultra White with gray stitching.