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Once mighty in America, the lux SUV looks to China for traction

They love big Buick sedans, buy the Mercedes-Benz S Class in record numbers, will soon control Hummer and are poised to overtake the United States as the top market for new car and truck sales worldwide.

Americans may be recovering from a credit binge and skipping the mall, but many Chinese consumers are just gearing up.

Today, China's Guangzhou Auto Show hosted the world debut of the newest luxury sport ute - the 2010 Lexus GX 460, one of a dwindling number of truck-based SUVs.

It oozes opulence and authority with a new 4.6 liter V-8 engine with 301 horsepower that is more powerful and 13 percent more fuel efficient than the 4.7-liter V-8 it replaces. The new ute is equipped with a new 6-speed automatic transmission, 10 standard air bags and a power third-row seat that folds flat for the first time.

There was a time not too long ago when North America - where the cowboy, independence and frontier are revered - was the launching pad for such indomitable, body-on-frame SUVs and trucks.

The Mercedes-Benz ML, Lincoln Navigator, Nissan Titan, and Toyota Tundra made their world debuts on U.S. soil, usually at the North American International Auto Auto Show.

But political and economic realities have automakers rethinking where and when they introduce such vehicles.

Americans are shedding the excess ways of their past, and the Chinese are still climbing the economic ladder and enjoying the thrills of consumerism after years of state control.

Introduced in 2003, the GX quickly surpassed the expectations of Lexus officials, with U.S. sales hitting a record 35,400 units in 2004. But it and other traditional SUVs - luxury or not - have been losing ground ever since, with unibody and thriftier crossover models such as the Buick Enclave gaining more favor.

U.S. demand for traditional, truck-based SUVs with luxurious appointments is off 38 percent this year. For some models, sales in 2009 have been horrific. Demand for the Lexus LX 570 is off 58 percent; the Lincoln Navigator is down 57 percent; and Mercedes-Benz GL demand has dropped 40 percent.

Sales may be slumping, but the segment still attracts young, affluent families and Lexus has listened to core U.S. buyers in revamping the new GX. Because the previous GX 470 featured a solid rear axle, the rear seats could not fold flat. On the new model, the floor was elevated three inches to allow for the fold-flat function.

The back window also flips open for the first time, allowing people to access the cargo area without having to open the back door.

The GX will hit U.S. showrooms in late December. For the first time, it will be offered in two grades, base, with a starting price of $51,970, and a premium model with a tag of $56,765. The destination and handling charge is another $875.

Lexus and its parent - Toyota Motor Corp. - are playing catch-up in a growing Chinese luxury market dominated by Audi, Mercedes-Benz and BMW AG.

The Lexus ES 240, a smaller sedan created only for the Chinese market and featuring a 2.4-liter engine, was introduced in September. It is designed to take advantage of tax policies that encourage Chinese consumers to buy small, fuel efficient vehicles.

Yale Zhang, a Shanghai-based analyst with Metro Detroit consulting firm CSM Worldwide, told the Wall Street Journal this week he sees China's luxury car segment advancing 26 percent to 315,000 vehicles in 2010. Demand this year is likely to increase only about 6 percent to 250,000 units, he said.

But it's still enough growth to set off a race among luxury brands in China. Cadillac plans a stretched version of the STS sedan here to create a larger back seat to target wealthy Chinese who rely on personal drivers.

BMW is adding another China plant to boost output of the 3 and 5 Series sedans.

Mercedes-Benz expects China to surpass the United Kingdom as its third-biggest market in 2010 - after the United States and Germany - with its sales growth in the Asian country outpacing the overall auto market. And the automaker's China sales are expected to jump 65 percent to 65,000 units this year.