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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.

2016 Mercedes-Maybach S600 Review [w/video]

"Hindsight is 20/20" is a handy yet disingenuous cliche. The flaw is that hindsight is only instructive up to the moment you would have made a different, perhaps better, decision. At the moment of that deviation the past goes in another direction, one that you can't peer back into because you didn't experience it. So when we say we wish Karl Benz's eponymous firm had produced the Mercedes-Maybach S600 in 2002 instead of the gilded blunder of the separate Maybach brand and its 57 and 62 sedans, we just can't know if the formula would have worked 13 years ago. But we do know the formula adds up superbly right now. A little history: Wilhelm Maybach helped Gottlieb Daimler build a high-speed, four-stroke internal combustion engine in 1885. Eventually Maybach went to work for Daimler's new car company and designed the first Mercedes, the 1901 35-hp model considered the world's first modern car. Maybach left the company after Daimler's death, started a company building zeppelins, then joined his son to start the Maybach car company. Together they developed super luxury cars including the DS8 Zeppelin models that competed with Rolls-Royce. A reviewer in 1933 wrote, "The Maybach Zeppelin models rank among the few cars in the international top class. They are highly luxurious, extremely lavish in their engineering and attainable only for a chosen few." It's a whopping 28 inches shorter than the departed Maybach 62, but 8.2 inches longer than a standard S-Class. As is this Maybach S600. It's a whopping 28 inches shorter than the departed Maybach 62, but since it's 8.2 inches longer than a standard S-Class, there's a very different driving experience. Two-thirds of a foot isn't much, but the Maybach is 639 pounds heavier than an S550, or 231 pounds heavier than a standard S600. From the driver's seat we could feel every additional pound and inch over those other models. It is as if Mercedes threw out the aluminum and steel and chiseled this sedan from basalt. We've driven scanty few cars where we've been genuinely glad for blind-spot detection and 360-degree cameras – this is one of them. The Maybach's wheelbase is four inches longer than that of a Bentley Mulsanne, even though the overall car is almost five inches shorter than the Big B. That long wheelbase translates into tranquil steering response – the S550, S600, and Maybach S600 all have the same 2.3 turns-to-lock, but this sedan feels like it takes more effort. It even looks heavy.

Mercedes-Benz GLA45 AMG spied in Sweden

We've spotted the all-new Mercedes-Benz GLA testing a couple times in recent months in getting closer to production form and shedding camouflage, but now it looks like we're see our first look at the AMG version of this compact crossover. The low ride height might trick some into thinking that we're just seeing the already-confirmed A45 AMG out testing, but the unique beltline, rear doors and side windows confirm this is some version of the GLA-Class.
What makes us so confident that this is the AMG model? Well, for starters, this prototype has beefier brakes with cross-drilled front and rear rotors and bigger front calipers, but it also sports dual exhaust outlets poking through the rear fascia and a suspension that has been lowered considerably. Our spy shooters said that this car's exhaust note made it almost certainly an AMG model.
Just to be clear, the GLA AMG will not be powered by a 4.5-liter engine. The closely related A45 AMG will carry the "45" in its name to celebrate the first 45 years of AMG, and our sources seem to indicate the AMG version of the GLA will do the same. We're expecting this sporty crossover to produce as much as 350 horsepower from its AMG-tuned four-cylinder engine, and like the all-new E63 AMG, it could very well come standard with 4Matic all-wheel drive.