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

Wed, Dec 26 2018

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.

GM CEO to meet with U.S. lawmakers over job cuts

Fri, Nov 30 2018

WASHINGTON — General Motors Co Chief Executive Mary Barra plans to visit Capitol Hill next week to discuss the company's plans to halt production at five plants in North America next year and cut up to 15,000 jobs, two congressional aides said on Friday. GM has come under harsh criticism from lawmakers from both major political parties, and from President Donald Trump, since Monday when it announced the biggest restructuring for the U.S. No. 1 carmaker since its bankruptcy a decade ago. Barra is expected to meet with lawmakers from Michigan and Ohio, where GM plans to shutter three plants, as well as senior leaders in Congress. GM did not immediately comment. Barra has been calling lawmakers this week to explain the decision to end production. Trump has threatened to revoke subsidies for GM. The Detroit automaker plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse. Additionally, GM plans to shutter the Warren transmission plant outside Detroit and a plant that makes electric motors and drivetrains outside Baltimore, Maryland. The Cruze compact car will be discontinued in the U.S. market in 2019, although GM may continue building it in Mexico for other markets, Barra said. Reporting by David Shepardson. Related Video:

Even if GM does close all 5 of those plants, it'll still have too many

Wed, Nov 28 2018

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Here are all the cars GM is axing as part of its restructuring

Tue, Nov 27 2018

GM plans to kill off a couple of great and a few meh cars as part of its restructuring. Here's a rundown of all the cars being phased out of production. None of the vehicles GM axed were SUVs or crossovers. Instead, it was an action reminiscent of what Ford recently decided to do by discontinuing U.S. sales every Blue Oval sedan. GM just didn't explicitly say, "We're killing our cars," like Ford did — probably a smart move by GM. Keep scrolling down to see the full list of deceased GM models. Chevrolet Volt This one was the most surprising of all the cars GM decided to can, primarily because cars with plugs are supposed to be our future. However, maybe consumer demand just isn't quite there yet for a plug-in like the Volt. We came up with all sorts of ideas for what was to blame for the untimely demise of the Volt, so go check that out for a full breakdown of the situation. Cadillac CT6 Here's another car we'll be sad to see go. Cadillac's flagship sedan was such a joy to drive, and it served as the conduit to deliver GM's semi-autonomous Super Cruise system, which still hasn't been surpassed by any other company's technology in our books, even Tesla's Autopilot. That being said, GM does plan to produce the CT6 until March, with the last cars coming off the line set to be twin-turbo V8 V-Series models. If it's going to go, this seems like a pretty great way to make an exit. We'll be patiently awaiting the next flagship Cadillac once this one finally fades away. Chevrolet Impala The Impala is actually a pretty good car. It doesn't sell terribly, and we think it's a completely satisfactory car to drive. However, people would rather have a Traverse or Equinox these days, making the Impala one of the vehicles to find itself on this list. Chevrolet is keeping its smaller brother, the Malibu, but a big, full-size sedan just isn't what people are ordering up these days. It's unfortunate to see it go, but we won't be broken up over it. Chevrolet Cruze We wouldn't rank the Cruze at the top of the compact car class, but if you were looking for a small, cheap American car, it was either this or the Focus. The Cruze had the potential to be a true small performance car if Chevy had ever wanted to make it into one. But sadly, we're seeing it bow out before Chevy ever tried to slot a hot engine and suspension in there to make it competitive with other hot hatches. A Cruze SS would have made enthusiasts take notice.

2019 Cadillac ATS-V Coupe Drivers' Notes Review | Not your granddad's Coupe de Ville

Wed, Oct 31 2018

The 2019 ATS-V is Cadillac's smallest car, slotting below both the CTS and CT6 sedans. It's also the automaker's only two-door model, helping compete against the Audi RS5, BMW M4 and Mercedes-AMG C 63 Coupe. Based on the GM Alpha platform, the ATS shares more than a little with the Chevrolet Camaro. Unlike the Camaro, the high-performance V variant uses a twin turbo V6. Like the Chevy, power is sent to the rear wheels through either a six-speed manual or eight-speed automatic. Our Wave Metallic blue test car has about $10,000 worth of options, the most expensive of which are the $2,300 Recaro sport seats. The Luxury Package — alloy pedals, HID headlights, navigation and a Bose stereo system — tacks on another $2,100. There are some visual upgrades, too, including $1,295 for a dealer-installed carbon-fiber engine cover. All in, this ATS-V rang up for $78,775. Editor-in-Chief Greg Migliore: Cadillac has problems, but the ATS-V coupe isn't one of them. It's everything former Cadillac president Johan de Nysschen hoped the brand could achieve in the sporting realm. The car has a tight yet tolerable suspension. The steering is direct but not overly weighted. The engine burbles and growls with noticeable attitude. It's all underscored by the six-speed manual transmission, which has a heavy clutch and requires precise throws. It's a serious sports coupe for enthusiasts. Cadillac's style is brash, edgy and sharp. It's all of those things literally and figuratively. Note the cuts and creases. The ATS is borderline severe – but I like it. I think it's smart for Cadillac to really go for it in the design department. Cadillac is again tweaking its lineup and the ATS sedan and ultimately the coupe will be replaced. Still, there's a place for a car like the ATS-V coupe in the Caddy stable. There should be, anyway. The devil is in the engine, but the details of the @Cadillac ATS-V Coupe aren't bad either. @therealautoblog pic.twitter.com/7fQOrBkxeE — Greg Migliore (@GregMigliore) October 29, 2018 Associate Editor Reese Counts: I forgot how great this thing is to drive. I won't repeat all of Greg's comments, but suffice it to say that it's everything you want in a luxury sports coupe — direct steering, a chassis that balances performance and comfort and a potent engine. Combine sharp styling and competitive pricing, and you have one of the most compelling non-German luxury cars on the market.

Ford Mustang Bullitt, Cadillac ATS-V and profitable car companies | Autoblog Podcast #559

Mon, Oct 29 2018

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Joel Stocksdale and Contributing Editor James Riswick. They talk about being behind the wheel of the 2018 Cadillac ATS-V, 2019 Ford Mustang Bullitt and 2018 Nissan Kicks. They also discuss the week's news such as Tesla and Ford both having profitable quarters, better than people were expecting. Not only that, but they talk about how the Camaro may be changing in the near future, plus the potential of Jaguar electric cars. The podcast then finishes with a Spend My Money segment in which we Autoblog editors help a reader choose a car to buy.Autoblog Podcast #559 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown 2019 Ford Mustang Bullitt 2018 Cadillac ATS-V 2018 Nissan Kicks Tesla makes a profit Ford makes a profit Chevy has changes in store for the Camaro Electric Jaguars Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Podcasts Cadillac Chevrolet Ford Jaguar Tesla Coupe Performance cadillac ats-v ford mustang bullitt

GM’s Charlie Wilson was right: Stronger regulations can help U.S. automakers

Fri, Oct 26 2018

Charlie Wilson had been the president and CEO of General Motors before being nominated to become secretary of defense by Dwight Eisenhower. During his Senate confirmation hearings, he controversially said, "For years I thought what was good for our country was good for General Motors, and vice versa." And he was right. While car companies aren't necessarily the most progressive when it comes to things that might have the slightest possibility of political blowback, General Motors should be credited for doing something absolutely forthright in this regard with its announcement that it wants the federal U.S. government not to squash the California Air Resources Board's emissions requirements but to actually create a 50-state "National Zero Emissions Vehicle" program that, in the words of Mark Reuss, executive vice president and president, Global Product Group and Cadillac, "will drive the scale and infrastructure investments needed to allow the U.S. to lead the way to a zero emission future." Filing comments to the Safer Affordable Fuel-Efficient Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks is one thing. But a graphic the company developed for this announcement — shown above — is something else entirely, something that is absolutely credible, creative and clever. There is a photo of a Chevrolet Bolt EV driving along a highway, which seems to be in Marin County (based on the blurred San Francisco skyline in the background). Text on the photo states: "It's Time for American Leadership in Zero Emissions Vehicles." It seems to say, in effect, "If we want to make America great again, then we're going to do it by leading in technology, not by retreating behind weakened regulations." General Motors understands that the auto market is globally competitive, and if U.S.-based companies are going to be in the game, then they'd better be able to out-innovate the companies based elsewhere, where emissions and economy standards are not being weakened. What's good for our country ... Related Video:

GM seeks national mandate for zero-emissions cars

Fri, Oct 26 2018

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.

2019 Cadillac ATS-V, CTS-V get cool color, weird name

Thu, Oct 25 2018

A lot of special-edition cars are really not all that special. They consist of some special paint combo, and maybe a couple of optional features made standard. The Cadillac ATS-V and CTS-V Pedestal Editions are actually pretty much that. But they make up for the mild content list with a really nifty color, great exclusivity and also a weird name. They also help celebrate the ATS-V and CTS-V before they disappear from the line. First let's take a look at the color. It's a shade called Bronze Sand Metallic. It's an earthy, dark brown with a yellow-green tinge to it. We suspect it probably looks more impressive in sunlight, and it's unlike most browns we've ever seen. It's sure to garner attention in any parking lot stuffed with black, silver and white luxury cars. It's matched with sand-colored ultrasuede inserts and bronze-threaded carbon fiber trim on the interior that look sumptuous. Each also comes with carbon fiber exterior trim, red brake calipers, and the CTS-V adds the performance data recorder and Luxury Package. The name really is strange, though. Cadillac says, "The special-edition variants are named in tribute to Cadillac V-Series' time spent at the pinnacle of luxury high-performance." So it seems the thinking was that these cars are up on a pedestal compared with other performance luxury cars. But even in that sentence from Cadillac, there's a word that would be better and more recognizable for excellence: pinnacle. We can think of other great words for marking the peak or the top of performance and luxury, words such as "apex" or "climax." Well, maybe not that one. One of the big appeals of these cars is that there won't be many of them. There will only be 300 built, and that's the total between the ATS-V coupe and CTS-V sedan. The final total for each model will be determined by orders. Ordering opens up on the first week of November, with production coming at the end of that month. The cars will only be available to buyers in the U.S., Canada and the Middle East. There are significant price differences between the two cars. The ATS-V coupe starts at $77,090, while the CTS-V starts at $102,590. That puts the ATS-V at roughly $10,000 more than a base model, and the CTS-V at roughly $12,000 more than its base model. Related Video: Featured Gallery 2019 Cadillac ATS-V and CTS-V Pedestal Edition View 9 Photos Image Credit: Cadillac Cadillac Coupe Luxury Performance Sedan cadillac ats-v

Cadillac plans new branding campaign to go with new products

Thu, Oct 25 2018

Cadillac's new leader says the GM luxury brand now has "thousands of people" working on its behalf back at its soon-to-be new headquarters in the Detroit suburb of Warren, with a new branding campaign under development and plans to fix longstanding quality issues. Cadillac President Steve Carlisle granted an interview with the Detroit Free Press in which he said he'll unveil a new strategy to redefine the luxury brand, which he's calling a "master brand," in the first quarter of 2019. "Cadillac has its own values — boldness, optimism, innovation, sophistication — that will reflect in the master brand," Carlisle told the outlet. The challenge is "how to bring those to life." He added that Caddy won't be defining itself simply as a viable option to gold-standard Germany luxury cars. "We're targeting customers versus competitors. Cadillac has to have its own persona and not be defined by where other brands are and are not. It has to have its own definition and that's what we're reflecting in our master brand." Carlisle, who was promoted to lead Cadillac in April, put his first stamp on Cadillac last month when the brand announced it will move its headquarters back to Warren, Mich., across the street from GM's massive Tech Center, after more than three years in Manhattan's SoHo neighborhood. He said its Cadillac House showroom, a ground-floor space used to display models and stage events with partners, will remain open "for the time being" and that the brand will use what it learned well outside of its Detroit auto-industry bubble to move the brand forward. He'll have his work cut out for him. Cadillac plans to launch a new or redesigned vehicle every six months for the next three years, and Carlisle said he wants the brand to be GM's technology leader, the first to deploy self-driving and electric-vehicle technology of GM's stable of brands. Yet the brand just ranked second-from-last in Consumer Reports' new reliability survey for 2018. Jon Linkov, deputy auto editor for CR, said the brand suffered for widespread complaints about its Cadillac User Experience infotainment system, with owners reporting frequent crashes, frozen screens and problems with voice control. "Most of (the complaints) really ran through the CUE system being a major culprit for Cadillacs," Linkov said. Through September, Cadillac's year-to-date sales had dipped a half a percentage point from the first nine months of 2017 to 113,240 units.