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General Motors shaking up its marketing... again

One of the things that dogs the full comeback of General Motors is the instability of its marketing. That part of the automaker got yet another big shakeup today when GM confirmed what I have been tweeting for a few days - strong rumors that the Chevrolet and Cadillac ad accounts are walking to new ad agencies.
Cadillac, GM's luxury brand, is going into review from Fallon Worldwide, Minneapolis and the indications are that Campbell-Ewald, Chevy's old ad shop, will end up with most or all of it. C-E just announced that it was moving from its long-time home in Warren, MI to a new downtown Detroit office next to Ford Field, just blocks from GM.
The other shoe to drop shortly will be the shift of GM's most important brand, Chevy, from Goodby, Silverstein & Partners of San Francisco to McCann-Erickson of Troy, MI. McCann used to be the agency for Buick and GMC, as well as GM's corporate advertising, and has retained some pieces of business over the last few years. Sources have even told us that it was McCann that did a lot of the creative work on Chevy's new ad platform, Find New Roads. (Not to be confused with a former McCann tagline for Saab, "Find Your Own Road.")

A few signs that Cadillac's revival is taking hold

Only a flatworm would not have predicted the Cadillac ATS would help increase sales for America's erstwhile luxury brand of record; however, even the best automotive oracles didn't realize by how much: The ATS fueled a 49-percent increase of the brand's year-on-year sales in March, the sixth straight month of growth for Cadillac. The momentum helped push General Motors to post a 6.4-increase in sales in March versus 2012, leading its domestic competitors.
Dealership salesmen are among the first to register the shift occurring at Cadillac. A Texas dealer related an incident in which he helped a mother affix a baby seat in a car for a test drive, explaining that as opposed to the older buyers that are still a Cadillac mainstay he's getting "a pretty diverse group that's coming through the door now" who are "younger and better educated." Aided by incentives on the ATS, Cadillac's sales are up 38 percent so far this year, overtaking Acura as the fourth best selling luxury brand, and GM stock is benefiting with incremental gains because of it. Based on early response, the new 2014 Cadillac CTS should keep things going in the same direction.
The trend at the Wreath and Crest is part of a larger sales trend happening among domestics - with other models like the Dodge Dart and Ford Fusion doing well - and overall US car sales. Head over to Bloomberg for the big picture and role the ATS plays in it.

GM recalls Chevy Impala, Cadillac XTS for braking problem

Back in April, General Motors launched an investigation into braking issues affecting the 2014 Chevy Impala. Now there's a recall of both the Impala and the Cadillac XTS with which it shares its Epsilon II platform.
The issue apparently revolves around the electronic parking brake, which may not properly disengage. As a result, the rear brake pads could rub the rotor even while the vehicle is in motion, causing "significant heat, smoke and sparks." The earlier investigation had been launched following a complaint regarding the forward collision avoidance system, which is now either appears to have been unrelated or possibly a symptom of this larger issue.
The recall affects 2013-15 XTS models manufactured between February 14, 2012, and August 22, 2014, as well as 2014-15 Impalas manufactured between January 15, 2013, and August 22, 2014. The total number of affected vehicles reported by the National Highway Traffic Safety Administration comes to precisely 132,921 units, while The Detroit News reports a higher total of 205,000 units - the difference potentially coming down to the scope within the US and more broadly across North America. Dealers will contact owners to update the software in order to fix the problem.