2021 Cadillac Other Ct4 Premium Luxury 4dr Sedan 2.0l I4 Turbocharger on 2040-cars

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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

Cadillac's Blackwing V8 was the best engine at the worst time

It should be clear that GM knows how to innovate and engineer excellent products when it wants to. Cadillac's 4.2-liter twin-turbo Blackwing V8 is recent proof of that. Yet, as related in an extensive Road & Track piece, the Blackwing became victim to some of The General's bugbears, like the reticence to — for whatever reasons — unleash its excellence everywhere, fund that excellence, and be consistent with that excellence over the long term beyond the Corvette and full-sized pickups and SUVs. The R/T story relates tales told by "several people deeply involved with the Blackwing project" about how an engine 18 years in the making was deprived of its reasons for being in less than three. Starting around 2000, GM spent a dozen years building Cadillac up to the point where the American luxury brand could rationally flip to the chapter called, "Taking the Fight to the Germans, but for Real this Time." The first steps in the plan meant an exclusive platform and an exclusive engine. The platform was called Omega. You know the engine's name. They were going to be the aluminum-blocked fist and velvet glove enabling Cadillac to break on through to the other side of luxury — proper luxury to global standards, that is — with a range of beautiful and dynamic crossovers and sedans. An engineer involved in the project estimates GM poured $16 million into the Blackwing's clean-sheet development. Many more seven-figure sums went into creating the first sedan on the Omega platform, the CT6. The automaker dropped millions again poaching ex-Audi and Infiniti chief Johan de Nysschen, and moving Cadillac's headquarters to New York City in 2014. Further pallets of cash funded the development and debut of the Escala concept at Pebble Beach in 2016. In 2018, GM revealed its dramatically named DOHC twin-turbo V8. Considering what came before, the Blackwing clearly wasn't designed for cars. It was designed for world domination. However, against the backdrop of plummeting sedan sales, the CT6 didn't sell like GM had hoped. The automaker hesitated to marshal another fleet of Brinks trucks to fund entries into a cratering bodystyle. Removing sedans from the world domination equation created more difficult math for the crossovers and the Escala.