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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.

2017 Mercedes-AMG C63 Coupe unleashed with 503 hp [w/video]

The Mercedes-AMG C63 Sedan is a truly fantastic car. The recently revealed Mercedes-Benz C-Class Coupe is a seriously pretty two-door. Combine the two, and you get the 2017 Mercedes-AMG C63 Coupe that'll debut at the Frankfurt Motor Show next month. The AMG C63 Coupe takes everything we love about the sedan and puts it into the sleeker coupe body. It's equal parts aggression and elegance, and it's got the performance and luxury substance to back up both of those attributes. Under the hood is the same twin-turbo, 4.0-liter V8 as the C63 sedan, with two different states of tune. Standard C63 models get 469 horsepower and 479 pound-feet of torque, while the C63 S ups those numbers to 503 and 516, respectively. Running to 60 miles per hour takes 3.9 seconds in the standard car or 3.8 seconds with the S, and the coupes are limited to either 155 or 180 miles per hour, depending on specification. Both versions of the C63 use Mercedes' AMG Speedshift seven-speed automatic transmission. Inside, it's all C-Class Coupe, which is to say, it's lovely. Same goes for all of the ride and handling bits – there's no doubt in our mind that the C63 Coupe will be just as much fun as its four-door sibling on both road and track. We'll see the AMG C63 Coupe next month, but American deliveries won't start until the summer of 2016, hence the 2017 model year designation. We're licking our chops in anticipation. The sportiest C-Class ever Mercedes-AMG is setting another milestone in the brand's history: the new 2017 AMG C63 Coupe is the next step on the way to more technical and visual distinctiveness. The far-reaching technical modifications are evident at first sight: strikingly flared front and rear wheel arches, an increased track width and larger wheels give the C63 Coupe a muscular look while also providing a basis for highly agile longitudinal and lateral dynamics. The brand's typical "Driving Performance" is also taken to new heights with the C63 Coupe. The AMG 4.0-liter V8 biturbo engine, with 469 hp in standard trim or 503 hp in the C63 S, is a completely in-house development from Affalterbach. In addition, the sophisticated AMG RIDE CONTROL suspension with electronically controlled shock absorbers, the set-up of the AMG DYNAMIC SELECT transmission modes, the rear-axle limited-slip differential and the dynamic engine mounts have all been developed by AMG. The C-Class is Mercedes-AMG's best-selling model and forms the backbone of the company's success.

Lewis Hamilton blasts to pole position for British Grand Prix

SILVERSTONE, England - Lewis Hamilton took pole position for his home British Grand Prix for the third year in a row on Saturday with a sensational lap that left him one step away from Michael Schumacher's Formula One record. Hamilton's championship-leading Ferrari rival Sebastian Vettel, who has a 20-point advantage after nine of 20 races, qualified third. The Mercedes driver was half a second quicker than Ferrari's second placed Kimi Raikkonen and his time of one minute 26.600 seconds was so outrageously quick there were gasps before the crowd erupted. "I always try to leave the best to last," the Briton told retired champion Jenson Button in post-qualifying interviews on the grid. "I had to make sure I got that lap in. I couldn't do it last weekend (in Austria) so I made sure I could here." Hamilton still faced a nervous wait after race stewards announced they were investigating an incident involving French driver Romain Grosjean, who complained he had been blocked earlier in the session. They swiftly decided to take no further action. The Briton's mastery of a damp but drying track lit up an overcast afternoon and the pole was the 67th of his career, sixth of the season, and gave him every chance of equalling Schumacher's record 68 before the August break. The triple world champion has won the last three British Grands Prix and can equal the late Jim Clark's feat of four home wins in a row, and five in total, on Sunday. Saturday ensured he has already matched Clark's 50-year-old record of five British Grand Prix pole positions. "I feel amazing in front of a great crowd like this. I hope you liked the lap," Hamilton told the grandstands full of cheering fans. "I generally like it to be dry, but I like it when the conditions are tricky." Hamilton's Finnish team mate Valtteri Bottas, winner in Austria, was fourth fastest but has a five-place penalty following a gearbox change. That promoted Red Bull's Dutch teenager Max Verstappen, who has suffered five retirements in the last seven races, to the second row. Renault's Nico Hulkenberg and his former Force India team mate Sergio Perez filled the third row. There was good news for beleaguered McLaren, who raised a cheer when Fernando Alonso made the most of improving conditions to set the fastest time in the first phase of qualifying, with Belgian Stoffel Vandoorne qualifying ninth.