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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.

2023 Lexus UX goes hybrid-only, gets new UXh name

Lexus is making a series of updates to the UX, its entry-level crossover, for the 2023 model year. Now only offered with a hybrid powertrain, the soft-roader receives a better infotainment system, updated steering and suspension systems and more capable safety features. Shifting to a hybrid-only line-up brings a new name: UXh. That's not the only change you'll spot if you open (or download) a brochure. Buyers can select a pair of option packages called F Sport Design and F Sport Handling, respectively. The former focuses largely on appearance and equipment. It adds F Sport wheels, a specific grille, painted wheel arch flares, dark roof rails, a black roof panel, a moonroof, rain-sensing wipers, fog lights, cornering lights and self-leveling headlights. Inside, the list of F Sport-specific parts includes the front sport seats, steering wheel, gear selector, instrument cluster and pedals. The latter goes a step further with performance-tuned dampers, an Active Variable Suspension system and a brace to the steering gear. We're told that these changes noticeably improve the UXh's handling. Even if you choose not to tick either box, the 2023 UXh should drive better and quieter than the 2022 UX. Lexus notes that it recalibrated the steering and suspension systems and, interestingly, added 20 spot welds to the body in order to improve structural rigidity. Inside, the most significant changes for 2023 are infotainment-related. The UXh gets the Lexus Interface infotainment system already found in some of the other models in the range, like the NX. It's displayed on an eight-inch touchscreen (a 12.3-inch unit is optional) with anti-glare technology, and it brings with it a redesigned center console with a bigger wireless device charger and a pair of USB charging ports. For 2023, every UXh regardless of trim level comes standard with the Lexus Safety System+ 2.5 suite of driving aids. This bundle includes a pre-collision system, emergency steering assist, lane-tracing assist and adaptive cruise control. Lexus notes that the pre-collision system's response range has been expanded with better hardware and that artificial intelligence helped it improve the lane-tracing assist function. Lexus dealers across the nation will begin receiving the 2023 UXh in late summer 2022. Pricing information hasn't been announced yet. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Lexus UX Luggage Test

TMG Lexus LS Sports 650 destined for production after 2015?

There's little question that Lexus has succeeded in challenging its German rivals in the luxury marketplace. And with the LFA, it has proven that Japan can build a world-class supercar. What's left blank is the space in between.
Toyota Motorsport GmbH came up with a compelling answer in the form of the Sports 650 prototype, a Lexus LS with a 5.0-liter twin-turbo V8 producing 641 horsepower and other go-fast components to challenge the likes of the Mercedes-Benz S63 AMG and Audi S8. Toyota boss Akio Toyoda was reportedly so impressed with the project that he initially ordered TMG to build ten examples - one for him and each of his nine best friends. But since the model on which the project was based has since been replaced, questions remain over the project's fate.
Georg Kacher - European correspondent for Automobile and Car magazines - recently drove the prototype and reports that "the project will now likely be transferred to the new model out in 2015." That could come down purely to speculation, but Kacher tends to get the inside line on industry news, so this particular bowl of gossip soup might not requite the usual grain of salt we otherwise might add.