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Cadillac chief marketer admits ELR is 'a big disappointment'

During the Cadillac XT5 global launch in Dubai, Automobile interviewed Cadillac Chief Marketing Officer Uwe Ellinghaus and got the CMO to touch on just about every major issue affecting the brand and the industry. After two years on the job, having come from 15 years at BMW, Ellinghaus naturally started with the "passionate Cadillac customers" and "iconic brand" spiel, then they got into a top-down look at where America's preeminent luxury brand stands. Ellinghaus said Cadillac is in a period of transition, lately focused on smaller and more performance-oriented vehicles, which has alienated a chunk of veteran customers and left others trying to figure out what Cadillac is about. He believes that "for a few more years, the products will probably be stronger than the brand," while he does his work of conveying what the company has to offer. But the brand had to make the switch, because "Generation X and Y will make 80 percent of all actual buyers in the next five years..." On top of that, he'll be working on making sure the customer and dealership experiences are where they need to be. Speaking of dealers, Ellinghaus thinks the future will not be brick-and-mortar shops, but digital pickup-and-delivery services. "Nobody wants to go to a dealership for service and maintenance," he says. He said the ELR has been "a big disappointment," but it has taught Cadillac that converting its existing line-up to plug-in hybrids is a better way forward. However, he characterized the plug-in hybrid as "the next all-wheel drive," in that everyone's going to offer it soon, so it will be "an entry ticket into luxury automobiles rather than a differentiating aspect." The CMO thinks the CTS is suffering because of the decline in the US midsize luxury sedan market in general thanks to the SUV and crossover craze, so the brand really needs another small SUV. Head over to Automobile for more of Ellinghaus' intriguing answers, like "I do believe that very long-term hydrogen is really the way," and "it's time to get real" in Europe. Taking a dig at Volkswagen on that last matter, he also said, "I think the absence of the diesel is not as much of an issue as it was eight weeks ago." Related Video:

Cadillac XT4-V on the way?

An anonymous photographer sent Cadillac Society two tightly cropped images of an XT4 crossover wearing two surprising badges. On the right, above the taillight, there's a 2.7 badge, In the lower right corner there's a V Series badge — the full-fat, multicolored V badge, not the monochrome V-Sport version. The images — assuming they're real — elicit more questions and no answers, the first being, is this the XT4 V-Sport that's been rumored since last October? Back then, GM Authority discovered front and rear images of such a vehicle hiding in plain sight, on a Cadillac site landing page. The backside of a thick-hipped XT4 is graced with the old V-Sport badge. We know the carmaker has split its V Series cars into two tiers, the lower intended to be less intimidating than before, the upper tier the continuation of the mongo V Series cars we've known and loved. The hints have been that the entry level will be called V Series, while the upper level takes the name "Blackwing," after the name of Cadillac's new 4.2-liter, twin-turbo V8 engine. With Mark Reuss himself having said, "We got rid of all the V-Sports," this supposed XT4-V offers more proof that V Series effectively represents a new V-Sport line. The only cosmetic giveaways to increased performance we can see are a carbon fiber trim in the license plate area, and an exhaust treatment similar to that on the recently introduced CT4-V. We're not certain what the 2.7 badge means for V branding on crossovers. The standard XT4 wears a 2.0 badge on the tailgate, representing its 2.0-liter four-cylinder with 237 horsepower and 258 pound-feet of torque. The XT5 gets a number, too, but the XT6 does not. GM's 2.7-liter four cylinder with 311 hp and 348 lb-ft first showed up in the Chevy Silverado, will get 320 hp and 369 lb-ft in the coming CT4-V, and has been predicted for the XT4-V. However, V cars — both Sport and Series — have never worn displacement badges. The new CT4-V and CT5-V go without numerical identifiers on their decklids. If there is an XT4-V on the way this year, we only have a few months before we see it and get some answers.

Book by Cadillac subscription service returns next year

Cadillac rolled out its subscription service Book by Cadillac at the beginning of 2017. On December 1, 2018, the automaker put the service on hiatus after having made a few revisions and learned a lot of lessons. Just a month later, brand president Steve Carlisle told GM Authority at this year's Detroit Auto Show that Book was definitely returning. A week after that, GM chief financial officer Deborah Wahl said Book 2.0 could be ready as soon as Q2 this year. It's taken a touch longer than expected to sort out the kinks, but Automotive News reports Wahl told an audience at the J.D. Power/NADA AutoConference L.A. that the real return happens in the first quarter of 2020.  When Book went on hiatus last year, the service charged $1,800 per month for insurance, maintenance, unlimited miles, the ability to swap into any Cadillac at will, and concierge-like vehicle delivery to your location with amenities like bottled water, umbrellas, and detailing. Good things came of it for the brand, such as the 70% of subscribers who'd never owned a Cadillac. Yet the drawbacks were too much. At one point, the carmaker said Book's halt was due to technical issues like "snags with the back-end technology used to support the service" that hampered customer service and increased costs. Cadillac managed the Book's fleet, as opposed to the dealers, and consumer choice — or a lack of it — played a role in the hiatus. In Carlisle's comments to GMA, he said that subscribers didn't swap out vehicles nearly as much as expected. Even though everything up to the full-fat V-Series models was in the catalogue, Carlisle said of the customers, "They wanted an XT5." The devotion to that one product changed the economics. "Are [subscribers] going to stay in that service if thatÂ’s what they realize they want?" he asked. "It is inherent in that model that we maintain more than one car per customer. And you got to think through the economic implications of that. Particularly if utilization is a lot lower than we thought because people are switching less than we thought." Wahl didn't offer any specifics on how Book 2.0 will differ from Book 1.0, only saying that there will be more "convenience, flexibility and value for potential subscribers." There will be less focus on swapping cars, and Cadillac will "base it off the dealer network." Since the brand's 900 U.S. dealers have the inventory, anyway, that should help both parties.