• Wall Street Journal , Friday, November 28, 2008 11 AM

Credit Suisse analyst Christopher Ceras is predicting a "November slaughter" in overall automotive sales figures when they are released on Tuesday. Unlike downturns in the past, sales of luxury autos in the U.S. -- which include everything from a Lexus to a Lamborghini -- are just as bad as in the mass market, Kate Linebaugh reports. They dropped 30% last month from a year earlier -- on par with the 31.9% decline for the overall market, according to Autodata Corp.

Morgan Stanley analysts expect the luxury market will be "significantly worse" in coming months. J.D. Power estimates that sales for Daimler AG's Mercedes-Benz unit will fall more than 40% in November. "People don't want to look like they have money now," says Mark Templin, group vp of Toyota Motor Corp.'s North American Lexus division.

Unlike past downturns, consumers aren't responding to traditional marketing devices like increased incentives, lease deals or beefed-up advertising, says BMW spokesman Tom Kowelski. BMW's U.S. sales fell 14% last month to 20,203 vehicles.

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