2013 Lexus Ls 460l on 2040-cars

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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 the Lexus GS death rumors aren't surprising

For months, rumors have persisted that the Lexus GS is dying, to be replaced in the lineup by the ever-growing ES. After spending some time with one, we can't really figure out why it hasn't happened sooner. For a long time, the smaller, less expensive, more efficient front-wheel-drive Lexus ES has been growing in size and dominating the rear-wheel-drive GS in sales. As customers move from sedans into crossovers, Lexus' five-car lineup of the CT, IS, ES, GS, and LS is looking a bit too crowded. We shouldn't lament the loss of another rear-wheel-drive sedan. Lexus customers sure as hell haven't. There are better options available. Outside of the GS F, the Lexus GS isn't a car that encourages you to drive in a way that would take advantage of a rear-wheel setup. In the rain and the snow, the front-wheel drive ES is likely to be a more stable and sure-footed car. If you want power, the less expensive ES 350 actually has a more powerful engine than the base GS 200t. It's nearly a second quicker to 60 mph as well. Stepping up to a GS 350 puts a nearly $12,000 divide between the ES and the GS. Yes, you can get the GS with all-wheel drive, but how many people well and truly need it? Size-wise, the ES is nearly identical to the GS, with the ES being longer but narrower by just over an inch in either direction. Being front-wheel drive, the ES has better rear packaging, meaning a roomier rear seat. The GS does beat the ES on cargo capacity, but on nearly every other measurement the ES is roughly identical or better. Another editor noticed the exact same thing when the current ES debuted nearly four years ago. That goes for pre- and post-refresh models. The ES isn't quite as handsome as the GS (as long as you ignore the spindle situation up front). From some angles, the ES looks like nothing more than the tarted up Toyota Avalon it is. From behind the wheel, the GS fails to convey any sense of excitement or occasion. It's simply a shoulder shrug of a car. When competition like the BMW 5 Series or Mercedes-Benz E-Class offer both refinement and a decent infusion of fun, it's hard to make a case for the Lexus. The ES isn't any better, but with a base price of $39,895 it's a far more reasonable proposition than a $47,305 GS. Our test car was starting to show its age, as the competition has long sailed by when it comes to noise, vibration, and harshness. Lexus quiet this GS 200t was not. All that said, it seems that customers have already spoken.

Toyota investing $750M, adding 600 jobs at 5 U.S. plants

BUFFALO, W.Va. — Toyota on Thursday announced it is investing an additional $750 million at five U.S. plants that will bring nearly 600 new jobs, including the production of two hybrid vehicles for the first time at its Kentucky facility. It marks yet another expansion of the Japanese automaker's U.S. presence, bringing to nearly $13 billion the amount it will spend by 2021. The latest investments are at facilities in Alabama, Kentucky, Missouri, Tennessee and West Virginia. Those same facilities were part of a 2017 announcement by Toyota for a $374 million investment to support production of its first American-made hybrid powertrain. Toyota Motor North America CEO Jim Lentz said the latest investments "represent even more examples of our long-term commitment to build where we sell. By boosting our U.S. manufacturing footprint, we can better serve our customers and dealers and position our manufacturing plants for future success with more domestic capacity." Toyota's Georgetown, Kentucky, facility will get a $238 million infusion to produce hybrid versions of Lexus ES 300 sedans starting in May and the Rav4 SUV starting in January 2020, the company announced. It also includes $288 million to increase annual engine capacity at Toyota's Huntsville, Alabama, facility. The plant will add 450 jobs to accommodate new four-cylinder and V6 engine production lines. Last year Toyota and Mazda announced plans to build a $1.6 billion joint-venture plant in Huntsville that will eventually employ about 4,000 people. Toyota also is spending $62 million on equipment to boost production of Toyota and Lexus cylinder heads at its Bodine Aluminum facility in Troy, Missouri, as part of its cost-saving New Global Architecture production strategy to share common parts and components among different vehicles. A $50 million expansion and equipment upgrade at its Bodine plant in Jackson, Tennessee, will add 13 jobs and produce engine blocks while doubling the capacity of hybrid transaxle cases and housings. And Toyota will add 123 jobs and spent $111 million to expand its plant and purchase equipment in Buffalo, West Virginia, to double the capacity of hybrid transaxles. Previously, Toyota also announced a $600 million investment at its Princeton, Indiana, plant to increase the capacity of its Highlander SUV and to incorporate the new production strategy, and $170 million to launch the 2020 Corolla on a new production line in Blue Springs, Mississippi.