73 Cadillac Deville Original 472/345hp Original Turbo Hydra-matic Trans. on 2040-cars

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Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

2021 Cadillac CT5-V makes a few changes for its second year

An order guide for the 2021 Cadillac CT5-V reveals a number of small changes to the sedan's formula going into its second year on the market. Starting with the superficial, the $1,225 Red Obsession Tintcoat exterior color and the $625 CT5-V-exclusive Royal Spice Metallic depart after this model year. They'll be replaced by Infrared Tintcoat and another color exclusive to this model called Rift Metallic. Since all but Summit White and Black Raven are cost-option Premium hues, the new colors should be expected to add to the price. Materially, the interior finish spiffs up with better-quality Modena leather stitched around the steering wheel rim, and Senza leather on the wheel center.    Next year, wireless Android Auto and Apple CarPlay will come standard, a promotion over the current wired systems. Getting around the infotainment screens will be easier thanks to a rotary dial that can slide laterally to choose menu items. The digital radio moves up to SiriusXM 360L, providing 4G streaming functionality. For the younger drivers in the family, the Teen Driver System will include Buckle to Drive. On the current CT5-V, the Navigation and Bose Premium Audio Package adds the Cadillac user experience with navigation, a 15-speaker Bose audio system, and an eight-inch configurable Driver Information Center display between the dash cluster gauges. For 2021, the eight-inch display is discontinued, so the package gains wireless phone charging. A new Technology Package replaces the current eight-inch DIC with a 12-inch configurable digital gauge cluster that sprouts a head-up display taken from the Driver Awareness Plus Package. The Technology Package will be included in the Platinum Package that right now costs $6,290, and that automatically adds the $4,190 Premium Package and $1,950 Driver Assist and Advanced Security Package. Based on current prices, the order guide indicates the Platinum Package will cost at least $12,430. Because of such bundling, the same package on the 2020 CT5-V 'roids up the MSRP by $13,730. Without ordering the Platinum Package, both the Navigation and Technology Packages will require the Premium Package.