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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 First Drive

Imagine the audacity: during the salad days of the early 2000s, the company that invented the automobile – already synonymous with class-leading luxury – sought to further expand its portfolio by crashing the ultraluxury party. Going up against the likes of Rolls-Royce and Bentley, Mercedes-Benz traded its unmistakable Three-Pointed Star for a Mighty Mouse-like logo, exhuming a stately, long-dead German marque originally founded in 1909. The long-wheelbase Maybach 62 listed at an epic $360,000, while later spinoffs included curiosities like the nearly $700,000 Zeppelin, and a roofless, seven-figure limousine dubbed Laundaulet. By the time the financial bubble finally burst in 2008, the brand's fate was all but sealed, with US sales dropping into the double digits. It limped along another four years, but when the nameplate finally went kerplunk, it left behind it a trail of disappointed movers, shakers, moguls and rappers. The perfect postmodern metaphor for the brand's funeral pyre? Kanye West and Jay-Z's Otis music video, in which a perfectly fine Maybach is chopped and deconstructed, flames spewing out the tailpipes as it powerslides through an empty parking lot. Meet The (Sorta) New Boss Rising from the ashes of hubris is the 2016 Mercedes-Maybach S600, a recalibrated stab at high-end luxury with a startlingly similar, yet different, approach to its forbear. Like the last go, the new sled features a significantly longer wheelbase, which stretches 8.1 inches over the standard S600. Additional sound damping helps it claim the quietest rear cabin in all of production automobiledom, and posher trim bits include a rim of wood surrounding the reclining rear seats. Among the livery-focused special features is a rearview mirror-mounted microphone to amplify the driver's voice, an available rear fridge, and an executive seat package with folding tray tables. The super high-end hallmarks are there – a twin-turbo V12 dispatching sub-5 second 0 to 60 times, a stunning 24 speaker Burmester sound system, double-M branded silver plate champagne flutes, et al. – but the hyperinflated price tag is not. Starting at $189,350, roughly half the cost of the old flagship, the new Maybach isn't even the most expensive Mercedes-Benz you can buy. That distinction goes to the S65 AMG Coupe, which empties your coffers to the tune of $230,900.

Mercedes calling in CLS, E-Class over rubber seal fire risk

Mercedes-Benz has discovered a problem with certain E-Class and CLS-Class models and has notified the National Highway Traffic Safety Administration of a recall it's undertaking to resolve the issue. The problem is with the rubber seal at the back of the engine bay, which according to the statement below "may temporarily stick to the hood when it is opened and then may fall into the engine bay when the hood is closed." If it then comes into contact with the exhaust system, it could start a fire. And fires in the engine bay are never a good thing, unless they're contained entirely within the combustion chamber. The issue affects an estimated total of 147,224 E-Class and CLS-Class vehicles, all told, across America – including four-doors, wagons, hybrids and AMG performance models (but no E-Class coupes or convertibles) from the 2013-15 model years. To fix the problem, Benz dealers will simply need to attach four additional clips to keep the seal in place, and will start doing so midway through next month. RECALL Subject : Rubber Seal may Dislodge and Contact Exhaust Report Receipt Date: FEB 13, 2015 NHTSA Campaign Number: 15V088000 Component(s): STRUCTURE Potential Number of Units Affected: 147,224 Manufacturer: Mercedes-Benz USA, LLC. SUMMARY: Mercedes-Benz USA, LLC. (MBUSA) is recalling certain model year 2013-2015 E350 Sedan, E350 4Matic Sedan, E350 4Matic Station Wagon, E400 Hybrid Sedan, CLS 550 CGI, and CLS550 4Matic, 2013-2014 E550 4Matic Sedan, 2013 E63 Sedan, E63 Station Wagon and CLS63, 2014-2015 CLS63 4Matic, E63 4Matic Sedan, E63 4Matic Sedan "S", and E63 4Matic Station Wagon, 2015 CLS400, 2015 E400 Sedan, E400 4Matic Sedan and CLS400 4Matic and 2014 CLS63 "S". The affected vehicles have a rubber seal at the back of the engine bay that may temporarily stick to the hood when it is opened and then may fall into the engine bay when the hood is closed. CONSEQUENCE: If the rubber seal falls into the engine compartment, it may contact parts of the exhaust system, increasing the risk of a fire. REMEDY: MBUSA will notify owners, and dealers will attach four additional retaining clips to the rubber seal, free of charge. The recall is expected to begin by mid-March 2015. Owners may contact MBUSA customer service at 1-201-573-5339. MBUSA's number for this recall is 2015020001. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.