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2016 Mercedes-Benz C450 AMG Sport bridges the gap between C300 and C63

Mercedes-Benz is looking to its new C-Class for the second member of its new AMG Sport line, unveiling the C450 AMG 4Matic at today's 2015 Detroit Auto Show. Like the GLE450 AMG Coupe that debuted in early December, this particular C-Class bridges the gap between the standard C300 and the new Mercedes-AMG C63. Considering this, the C450 builds on the standard C400's 3.0-liter, twin-turbocharged V6, rather than getting a bespoke, high-performance engine. Output is up from 329 horsepower to 362 ponies, while torque is turned up from 354 pound-feet to 384 lb-ft. The result of these upgrades is a zippy 0-60-mile-per-hour sprint of 4.9 seconds and an electronically limited top speed of 155 mph. Those figures are identical to the Audi S4, while the BMW 335i xDrive is just a smidge quicker to 60, getting there in 4.8 seconds (the Bimmer is, however, limited to just 130 mph). Shuffling the 3.0-liter's grunt to a 4Matic all-wheel-drive system is the responsibility of Mercedes 7G-Tronic automatic gearbox that, despite not being a member of AMG's Speedshift dual-clutch family, still has its own mind for performance. Along with a quick-shifting, automatic Sport Plus mode, the C450 has a full manual shifting mode that, notably, will not automatically upshift, even when the engine is bouncing off the rev limiter. The C450 AMG hasn't only had its straight-line abilities boosted. Mercedes saw fit to include an AMG adaptive sport suspension with three-stage adjustable dampers, which have been pilfered from the C63 AMG. Paired with the aforementioned all-wheel-drive system, which can send up to two-thirds of its power to the rear axle, it's a fair to say this particular sedan should be one of the brand's more agile and entertaining. Beyond the mechanical bits, Mercedes has beefed up the exterior and interior aesthetics for its second AMG Sport model. The exterior has been touched up with new, staggered 18-inch, five-spoke wheels (or optional 19s), a more aggressive front fascia, a new rear bumper with a matte iridium diffuser, distinctive AMG badges and plenty of chrome and gloss-black elements. The cabin, meanwhile, is home to black MB Tex upholstery with red contrast stitching on the dash and doors, while AMG-specific upholstery lines the sport seats. The flat-bottomed, three-spokes steering wheel, meanwhile, is finished in Nappa leather. We'll have more on the 2016 C450 AMG Sport, including live images, coming soon from the floor of the 2015 Detroit Auto Show.

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.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs