2006 Cadillac Dts on 2040-cars

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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Why an independent rear suspension for GM's new, full-sized SUVs wasn't easy

A Motor Trend report last month laid out how Cadillac's 4.2-lier twin-turbo Blackwing V8 could be an orphan due to cost concerns in the GM empire. Last-minute chassis changes to Cadillac's new sedans and XT6 crossover led to engine bays that couldn't fit the Blackwing. On the SUV side, according to the report, the new independent rear suspension for big people haulers cost so much to implement that GM ruled out reworking the Escalade to accept the Blackwing. At least one commenter rightly asked how could a suspension swallow that much money. A new piece in Motor Trend has the answer. The excellent Alissa Priddle spoke to Tim Herrick, GM's executive chief engineer for full-size trucks, about why the clean-sheet IRS cost "multimillions of dollars."  First, GM would need to build a new body shop at the Arlington, Texas plant that assembles the automaker's big SUVs to stamp the numerous wholly new parts and panels accommodating an IRS. Then GM would need to design and pay for a new assembly process. On top of those up-front costs, there was the incremental cost of the four-link IRS components being more expensive than those in the trucks' former leaf-sprung solid axles. Herrick endured so many rejections for so long that he remembers the date and time when he got approval for the new unit. He said it came down to a meeting where he told a higher-up, "I'll make you a deal: If we get to the reveal, or if we launch this and you think this was a dumb idea, I'll hand you my badge and let you walk me out." Head to Motor Trend to read the full story. Based on Herrick being on stage to help present the new SUVs to the press, and on our First Ride in the new Chevrolet Tahoe and Suburban at GM's Milford Proving Grounds, it appears this will have a happy ending for all involved. Furthermore, since Herrick worked on the T1 platform that supports the big SUVs as well as the light- and heavy-duty pickups, he understood the demands on the commercial side, too. That could be why when Roadshow asked Tim Asoklis, chief engineer of the Tahoe and Suburban, if the new IRS could endure life in the Chevrolet Silverado and GMC Sierra, Asoklis answered, "Oh, absolutely." Related Video:    

2017 Cadillac XT5 will debut in Dubai

Cadillac confirmed the 2017 XT5 crossover – the replacement for the SRX – will officially debut at the Dubai Motor Show in November. The XT5 will then make its first North American appearance at the Los Angeles Auto Show later that month. The current SRX is a hugely important vehicle for Cadillac – it's still the company's best-selling product worldwide. But it's pretty old now, having launched in 2009 as a 2010 model. The XT5 will bolster all of the good things about the SRX while finally bringing that product up to date. Above, you can see a spy shot of what looks to be the new XT5, caught during a photo shoot. "The XT5 will be the cornerstone of a series of crossovers bearing the 'XT' designation," Cadillac said in a statement. We've long known that Cadillac wants to add a CUV between the XT5 and its flagship Escalade. But we think there's also room for something smaller – a proper fighter to the expanding entry-level luxury crossover segment that includes the Mercedes-Benz GLA, BMW X1, upcoming Infiniti QX30, and more. We'll have more information on the 2017 XT5 this week. In addition to the auto show news, Cadillac confirmed it will have a few photos and details to share in the coming days. Stay tuned.