1988 Cadillac Eldorado Biarritz on 2040-cars

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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.

Johan de Nysschen tells his side of the story

Automobile snagged time with ex-Cadillac, Infiniti, and Volkswagen of America boss Johan de Nysschen. General Motors decided to part ways with de Nysschen on April 18, 2018, after the German spent four years in charge of America's luxury brand. The longtime auto exec is a polarizing figure for enthusiasts, who seem to take a mostly negative view of his work at Infiniti and Cadillac. However, there's no denying de Nysschen is frank, and in the Automobile interview he puts an insider's perspective on a big bag of issues we can only speculate on. One of the biggest bombshells in the interview was that it wasn't de Nysschen's idea to move Cadillac to New York: "When I was recruited, I was informed that the company would relocate to New York," he said. Previous GM CEO Dan Ackerson had made the decision before hiring de Nysschen, then Ackerson let his new hire make the announcement. The big change came only two years after de Nysschen had taken over Infiniti after insisting Nissan's luxury brand move to Hong Kong. De Nysschen explained Cadillac's NYC move with the same rationale as Infiniti's Hong Kong move, so everyone assumed the new guy was doing his usual. He explains in the interview that after the move, "Folks who rooted for Detroit felt betrayed. Cadillac had an enemy." And that became a problem. He has nothing bad to say about GM or Cadillac, believing on the contrary that "GM is in a good position going forward." But he brought clarity to some of Cadillac's struggles. Among the issues was GM's "very vigorous" post-bankruptcy test for green-lighting a project. Another was the lack of specialization for the luxury arm. "Engines were generically developed with the Chevy brand in mind," he said, "and, then, 'Okay, well, yeah, it's good enough for Cadillac.'" That carried over into haphazard technology rollouts. "GM didn't have a specific technology roadmap aligned to particular brands," he said. "The process was, as they were developing new technologies, they would look at what product's launch date would be aligned with the maturation date and market readiness of a technology and go with it, whether Buick, Chevy, or what have you." De Nysschen worked to end such generalized approaches, which is how we get Cadillac taking the GM lead on technology and electrification.

Cadillac reveals more 2015 Escalade details, launches colorizer

Cadillac has opened up a mini-site to entice you into its all-new 2015 Escalade, and begun talking about more of its features and trim levels. While all versions of the new daddy Caddy will be powered by a 6.2-liter V8 with 420 horsepower and 460 pound-feet of torque routed through a six-speed automatic, there will be three trim packages you can wrap around that powertrain and seven exterior colors available to make it pop.
Features common to all trims include leather throughout, heated and cooled front seats, a 12-inch reconfigurable dash cluster, a quieter interior thanks to Bose active noise cancellation and the brand's love/hate CUE infotainment system. The base trim comes with adaptive remote start, hands-free tailgate, rear-view camera, park assist, Magnetic Ride Control and sits on 20-inch wheels. Moving up to the Luxury spec increases your stature with 22-inch wheels and adds a reconfigurable, color head-up display, a sunroof, power fold-and-tumble second row seating, Intellibeam headlights and a Driver Awareness Package with active crash-avoidance technology like Safety Alert Seat, lane departure warning and forward collision alert.
The top Premium trim gets a Driver Assist Package that includes Automatic Collision Preparation, automatic braking and adaptive cruise control, rear-seat entertainment, along with exterior touches like illuminated door handles.