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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.

2021 Lexus IS debuts with new styling and greater emphasis on handling

The reveals keep on coming today. Lexus just took the wraps off the 2021 Lexus IS sport sedan, the fourth generation of its small, sporty four-door. It may not look all that different on the outside, but Lexus is making heady claims that the driving experience is going to be the real head turner. We’ll start with the looks, though. Lexus has only revealed the 2021 IS in F Sport trim, which is the most aggressive of all the models. The spindle grille again sits proudly in front. (Apparently, even non F Sport models have mini spindles within the grille design, so we hope you like spindles.) YouÂ’ll also see a new air intake below that grille. ItÂ’s meant to direct air to the brakes and assist in cooling. The slimmer headlights with a new LED pattern look sharp. Along the side, Lexus has implemented new rocker panels that kick up into the rear fender for a more aggressive stance. The view from the rear offers up the most noticeable change. Lexus has gone with the full-width taillight design, stretching the red element from one side of the trunk to the other. Those taillights feature more intricate sculpting, and the rear valance is finished in a glossy black. Lexus changed the exhaust tip look, too, opting for ovals this time. But, onwards to the performance. The powertrain lineup hasnÂ’t changed a bit. A Lexus IS 300 with rear-wheel drive continues to be powered by a 2.0-liter turbocharged four-cylinder. It makes the same 241 horsepower and 258 pound-feet of torque as before, and is mated to an eight-speed automatic transmission only. However, Lexus says itÂ’s been updated for “adaptive transmission control” that is better at choosing the appropriate gear for the driving situation. An all-wheel-drive IS 300 is also available, but itÂ’s equipped with the 3.5-liter V6 that makes 260 horsepower and 236 pound-feet of torque. The all-wheel-drive IS 300 is also continuing to send the power through a six-speed automatic transmission exclusively. The system can send as much as 50% of torque to the front axle. The tip-top IS is the IS 350. ItÂ’s equipped with a 3.5-liter V6 that makes 311 horsepower and 280 pound-feet of torque. With rear-wheel drive, itÂ’s equipped with an eight-speed automatic, but the all-wheel-drive version is equipped with a six-speed auto. Lexus says the rear-drive IS 350 will get to 60 mph in 5.6 seconds, while the all-wheel-drive car gets there in 5.7 seconds.

Toyota wants improved crash scores with midcycle facelifts

The performances of some Toyotas in the Insurance Institute for Highway Safety's (IIHS) regimen of crash tests leave something to be desired. Consider the small overlap frontal crash test: only six Toyota, Lexus and Scion vehicles have undergone the new test, yet all but one of them received a poor rating. Osama Nagata, CEO of Toyota Motor Engineering & Manufacturing North America Inc., says midcycle vehicle updates are in the works to address the safety issues brought to light by the IIHS test, Automotive News reports. He confirmed that the RAV4 is getting safety updates following its crash test performance last month, but he didn't name any other models.
All three Toyotas that were tested - 2013 RAV4, 2012-2013 Prius V, 2012-2013 Camry - received poor ratings. The 2007-2012 Lexus ES 350 and 2006-2013 IS 250/350 also received poor ratings. The only other Toyota Motor Corp. vehicle to score better than poor is the 2014 Scion TC. It received an acceptable rating in the small overlap frontal crash test and is the only recent vehicle in Toyota's line-up to get the IIHS Top Safety Pick+ rating.
The small overlap front crash test measures the safety of a car when its front left corner is strikes an object during an accident, bypassing traditional crumple zones, which deform in a way to protect passengers. In 2009, automakers were alerted to the forthcoming addition of the test, which was first implemented last year, IIHS spokesman Russ Rader says. They responded with differing intensity, he says, pointing out that Subaru and Honda started incorporating design changes early on so their cars would perform well in the tests.