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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.

Cadillac CTS wins 2014 Motor Trend Car of the Year [w/video]

For the second time, the Cadillac CTS has been named Motor Trend's Car of the Year. After winning the COTY crown for 2008, the new-for-2014 CTS outdid the other two finalists for Car of the Year honors, the Mazda3 and its corporate cousin, the Chevrolet Corvette Stingray.
What's notable about the Caddy's victory, though, is how it simply brushed off its competition. Both the Mercedes-Benz E-Class and BMW 5 Series failed to make the finalist's bracket, leaving the CTS to claim victory. "It had to beat [Mercedes and BMW] on style, on performance, on comfort, and on quality. It has," Motor Trend said in its COTY recap for the CTS.
The team at Motor Trend praised the CTS chassis, calling it "fantastic," and citing weight advantage the Caddy has over the competition. There was also praise heaped on the car's engines, with the 2.0-liter, turbocharged four-cylinder getting nods of approval from the MT team. The team also raved about the VSport model and its twin-turbocharged V6, magnetic shocks and other performance accoutrements.

Weekly Recap: Car-pedestrian crashes remained elevated in 2014

The death of American Horror Story: Freak Show star Ben Woolf served as a reminder this week that car crashes involving pedestrians remain a problem, and a new study issued on Thursday reinforced that the situation isn't really getting better. The Governors Highway Safety Association found a slight decline, 2.8 percent, in the number of pedestrian deaths in the first six months of 2014. Fatalities dropped from 2,141 to 2,125 compared with the same period in 2013, though the association says it's a statistical wash when factoring in undercounting. Deaths are still 15-percent higher than in 2009. "The number of deaths remains relatively high and is cause for concern," wrote Allan Williams, who compiled the report and is the former chief scientist at the Insurance Institute for Highway Safety. This is the first look at data from last year, and the National Highway Traffic Safety Administration will issue its full-year results later. The GHSA found some progress on the roadways, as 24 states and the District of Columbia reported drops in pedestrian deaths. In some states, the problem isn't even a problem at all: Nebraska and Wyoming reported one fatality apiece, though large population centers in urban areas are where most accidents occur. "This is a clearly a good news, bad news scenario," Jonathan Adkins, GHSA executive director, said in a statement. "While we're encouraged that pedestrian fatalities haven't increased over the past two years, progress has been slow." Other News & Notes Cadillac previews CT6 during Oscars Cadillac previewed its upcoming flagship sedan, the CT6, in commercials that aired Sunday during the Oscars. As expected, the creased sedan carries on Cadillac's recent design language, and the car in the commercial looks like a larger version of the CTS and ATS sedans. The CT6 will be revealed this spring at the New York Auto Show and launch late this year. It will be assembled at General Motors' Detroit-Hamtramck factory on a rear-wheel-drive chassis, and the CT6 is the first car to use Cadillac's revised alpha-numeric naming scheme. The commercials also kicked off Cadillac's "Dare Greatly" campaign, which is the first with its new advertising agency, Publicis Worldwide. Honda unexpectedly changes CEOs Honda unexpectedly announced this week that it will change CEOs. Current chief Takanobu Ito will step down in June and be replaced by company veteran Takahiro Hachigo.