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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.

Why is there a huge bulge in 2021 Lexus IS 300 AWD's driver footwell? We explain

After an initial turn a few weeks ago for the 2021 Lexus IS first drive review, the revised luxury sedan has returned to the Autoblog garage for a second look. This middle-of-the-road IS 300 AWD pairs a 260-horsepower V6 with a six-speed automatic transmission and four driven wheels, and frankly it's the least interesting way to spec out the redesigned sedan. While there are cars in this segment designed to get a performance boost from their all-wheel-drive systems even in dry conditions, the IS isn't one of them. Adding insult to injury, you get stuck with a cramped driver-side footwell care of the engineering shenanigans that went into making this system possible.  While we've mentioned this particular compromise before, we rarely touch on the reasons why it exists in the first place. The fundamentals are fairly obvious; the standard IS utilizes a longitudinal, rear-wheel-drive powertrain. As is typical with this configuration, the transmission sits in a tunnel beneath the center console. This arrangement works just fine, provided you don't need to power the front wheels.  To do so in a traditional car like the IS requires a literal end-around maneuver involving the engine and transmission, which we've diagrammed for you below care of MSPaint. This is a bit simplified for the sake of this write-up, and it should be noted that this is not the only way to implement AWD in an inherently RWD platform, but it illustrates how the power for the front axle (red) and rear axle (blue) flows from the transmission to the drive wheels. To get juice flowing to the front axle, Lexus had to add a parallel output shaft, exiting the transmission from the front with enough clearance for the bell housing and engine, which sits between the transmission and the front differential. This requires quite a bit of lateral reach, meaning the housing has to extend much farther out than usual to accommodate it (yellow arrow). As a result, the all-wheel-drive transmission looks a lot like a sci-fi gun with a chunky drum magazine hanging off the side of it. The hump (above right) in the footwell is there to clear this protrusion. This basic configuration isn't unique to Lexus. In fact, if you look at a BMW xDrive cutaway, it's similar. So, why no "hump" in other cars? There are multiple factors, but to boil it down to what is most relevant, it's a combination of the resulting shape of the Lexus transmission housing and the size of the IS chassis.

Lexus RC F is a predatory sport coupe with a 450-horsepower beating heart

Take a look at that face. We can't be the only ones who see an automotive Predator staring back, right? Certainly, the Lexus RC F Coupe boasts a visually striking design that some are going to love and others are going to hate, but we can at least appreciate that it's aggressive, especially compared to the standard RC Coupe that we saw at the Tokyo Motor Show. And with good reason - there's a 5.0-liter V8 engine sitting under that massively domed hood with "more than 450 horsepower," along with a newly calibrated eight-speed automatic gearbox.
Interestingly, Lexus has tuned the RC F's engine to run on an Atkinson cycle under most circumstances, while it switches to the more typical Otto cycle when more power is required, presumably using some sort of advanced variable valve timing technology. Helping put that power to the ground with all those ponies wreaking havoc underhood is a torque vectoring differential, a first from Lexus.
Also involved in keeping the RC F planted is an aero package that includes wings and ducts galore. The headline bit is an active rear wing that deploys at 50 miles per hour and retracts back into the deck when the car drops back to 25 mph. A clear-coated carbon fiber roof can optionally join that carbon rear wing. There are apparently going to be three 19-inch wheel options, including the ones you see in our live image gallery above.