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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.

2016 Cadillac CT6 to get an aluminum body?

Well this is interesting: A hot-off-the-press report in Automobile claims the coming Cadillac CT6 will have an aluminum body. Most write-ups on the CT6 claim it will have a body that's a combination of aluminum and high-strength steel - Automobile itself wrote of "high-strength steel, aluminum, and steel stampings" in October. An all-aluminum body would be quite the reversal, contradicting the last four months of reportage and company statements on the matter. Mark Reuss, EVP of global development at General Motors, told The Detroit News in October, "We will create with the CT6, the world's most advanced body structure... [and] it's not aluminum. It's a stronger, smarter, safer premium luxury vehicle." It echoed the earlier Automobile story in saying the CT6 would use GM's "patented welding technology with high-strength steel, aluminum and steel stampings and castings." That same month, the Wall Street Journal ran a piece titled, "GM Won't Follow Aluminum Strategy in Future Cars," in which Reuss said, "making big statements around all carbon fiber, all aluminum, all magnesium, they're very interesting," and that GM wouldn't be doing it. That piece also circled back to a material mix and GM's special welding process, saying the CT6 "will have a body made of aluminum, high-strength steel and other materials, and will be 100 kilograms (220 pounds) lighter than a similar-sized car made of high-strength steel." We don't know what kind of body Cadillac's new assault on luxury is going to wear, but now we can't wait to find out. Featured Gallery Cadillac Elmiraj Sedan: Spy Shots View 22 Photos News Source: AutomobileImage Credit: Chris Doane Automotive Cadillac GM Luxury Sedan aluminum cadillac ct6

Diesel engine will be a no-cost option on 2021 Cadillac Escalade

Pricing for the redesigned 2021 Cadillac Escalade was revealed yesterday, with the various trim levels ranging from $77,490 to $101,290 including $1,295 destination. And while we also learned that all-wheel drive will be a $3,000 option, what's surprising is that the optional 3.0-liter inline-six diesel engine will cost $0, this according to official pricing info released by Cadillac. The diesel is one of two engine choices for the new 2021 Escalade, the other being a 6.2-liter V8. The engine also is coming to the 2021 Chevrolet and GMC full-size SUVs, but it's not yet known what the upcharge will be there, if any. Already, the 3.0-liter I6 diesel is offered in the Chevy Silverado and GMC Sierra 1500 pickups, where it is currently a $2,500 option over the 6.2-liter V8. The Duramax inline-six turbodiesel is an aluminum-block design with dual overhead camshafts and a single, variable-geometry turbocharger. Cadillac quotes preliminary outputs of 277 horsepower and 460 lb-ft of torque. The 6.2-liter V8, meanwhile, musters 420 horses and the same torque output. The primary draw for the diesel is expected to be fuel economy. EPA estimates for the diesel engine in the Escalade (and in the GMC and Chevrolet full-size utes) have not yet been released. But in the pickup trucks, the engine returns 23 city/33 highway miles per gallon with rear-wheel drive and 23/29 mpg with four-wheel drive. The 2021 Cadillac Escalade had been scheduled to reach dealerships this summer, but it's not known whether that date might slip due to the current shutdown at GM's assembly plants. Related Video: