In the midst of a recession, does anyone really give a loved one a $50,000 car for Christmas?  Television commercials featuring Santa building a Mercedes or Lexuses wrapped in red ribbon aside, luxury automakers' sales are slumping along with those of more affordable brands. 

The Wall Street Journal reports, "In past economic slumps, luxury-car makers have withstood the downturn better than their mass-market counterparts. Not so this year.  Sales for the U.S. luxury-car market, which includes everything from a Lexus to a Lamborghini, fell 30% last month from a year earlier -- on par with the 31.9% decline for the overall market, according to Autodata Corp., a market research firm."

The big red bow ads may not be doing the trick. AutoTrends analyst Joe Phillippi told Kicking Tires, "It's rubbing salt into the wounds of those struggling to keep home, job and 401(k) from disappearing as they watch CNBC about just how bad the economy is, only to have that Christmas ad flash on the screen with a big red bow around the new car being given as a Christmas present."  Lexus, Infiniti and Volvo have all used the giant bows in ads.  Crowe Horwath analyst Erich Merkle says "there are those who have money to spend on a car, and a Christmas ad with a big red bow wrapped around a car is a tap on the shoulder reminding them that they have the means."  But this year the tactic doesn't seem to be doing much good.  "Lexus, Infiniti and Volvo sales are all down like the rest of the mass-market automakers," Merkle added.

Even some super-luxury carmakers are seeing a downturn.  Motor Trend reports, "After years of growth, the British luxury automaker" Bentley "is set to post big losses this year as even the wealthiest members of our societies can't afford their toys any more." 

And Autoblog notes, Aston Martin "has announced plans to cut up to 600 jobs in the near future...With German brands like BMW, Mercedes and Porsche all suffering as well, the big question now is how long will it until we hear about layoffs at Ferrari?"

The declining market, however, means great deals are available.  Bentley may have no plans to join the fire-sale craze - Motor Trend notes "Instead, the company will give financial support to any of its dealers with abnormally high levels of inventory."  But Lexus's usual December sale began in November this year.  Infiniti has begun to offer interest-free financing on many cars, and other makes have announced aggressive incentives as well.

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