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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 CLA and GLA get more power, quicker

Unlike in Europe, Mercedes-Benz doesn't have hyper hatches like the Audi RS3 to compete against in North America, at least not yet. However, the company isn't letting its high-performance compacts get behind the times anywhere in the world with the announcement that the CLA45 AMG and GLA45 AMG in the US are getting practically the same raft of upgrades as the ones across the pond. Both models go on sale in October in US dealers. Like its European counterpart, the 2.0-liter turbocharged four-cylinder in the diminutive AMGs receives upgrades to produce 375 horsepower and 350 pound-feet of torque (the 381 hp rating over there is in metric ponies). That's an impressive 20-horsepower and 18 lb-ft bump over the current version of the mill. Beyond just the boost in output, quicker acceleration comes from revised, more aggressive ratios in third through seventh gears. The latest AMGs make great use of their upgrades, too. The 2016 GLA45 now clocks the run to 60 miles per hour in 4.3 seconds, a staggering half-second quicker than the 2015 model. The CLA45 slices 0.3 seconds off its time to make the sprint in 4.1 seconds, which gives the sedan the same acceleration as a SL63 AMG. In addition to the powertrain tweaks, the 2016 models get a few other added luxuries. As in Europe, they receive the Dynamic Select System that uses a rotary knob select from multiple driving modes. Inside, there's standard keyless start, dual-zone climate controls, and Mercedes' latest infotainment unit. A "Turbo 4Matic" badge on the fender now hints at the vehicles' performance potential. The new Dynamic Plus Package is the major addition to the options list. It combines a limited slip differential at the front, AMG Adaptive Suspension, Race Mode, Performance Steering Wheel, and pushes the top speed to 167 mph. At the same time, the AMG Driver's Package is discontinued, and the AMG Performance Studio Package is dropped on the CLA45. Related Video:

Wards names its 2015 10 Best Interiors list

Wards Automotive has named the winners of its 10 Best Interior awards, covering a wide but affordable array of vehicles. Where last year's list contained two six-figure vehicles, including the $372,800 Rolls-Royce Wraith, this year's is, well, a whole lot more reasonable. The publication lists the Mercedes-Benz C400 at $65,000 (which seems off), making it the most expensive vehicle here. That said, we'd argue that the entire C-Class line deserves to make this year's list, owing to its varied and high-quality selection of materials. The other vehicle to break the $60,000 mark, meanwhile, is the $60,675 Ford F-150 King Ranch, which has 327,000 pounds of leather lining its interior. Only one other German car, the BMW i3, and one other pickup truck, the GMC Canyon, managed to make this year's list. Here's the full list of this year's winners: 2014 BMW i3 ($52,550) 2015 Chrysler 300C Platinum ($51,175) 2015 Ford F-150 King Ranch ($60,675) 2015 GMC Canyon SLT ($40,465) 2015 Honda Fit EX-L ($21,590) 2015 Jeep Renegade Limited ($33,205) 2015 Kia Sedona SXL ($43,295) 2016 Mazda6 Grand Touring ($33,395) 2015 Mercedes C400 ($65,000) 2015 Nissan Murano SL ($41,905) See what we mean about the mainstream vehicles? Not only is there a distinct lack of luxury brands, it's the price of some of the vehicles that surprise. The Honda Fit, Jeep Renegade and Mazda6 are very reasonably priced, especially when you compare Wards price with the starting price. The Renegade Limited starts at less than $25,000, the Mazda at less than $22K and the Fit at under $16,000. Head over to Wards for a more detailed explanation of why each vehicle won. Featured Gallery 2015 Ward's Automotive 10 Best Interiors View 10 Photos News Source: Wards Automotive BMW Chrysler Ford GMC Honda Jeep Kia Mazda Mercedes-Benz Nissan Truck Crossover Hatchback Sedan nissan murano gmc canyon Interior jeep renegade WardsAuto kia sedona wards 10 best interiors mercedes c400