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Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

GM posts $4 billion third-quarter profit thanks to trucks and SUVs

DETROIT — General Motors is posting huge third quarter numbers, pulling in $4 billion in profit over three months after losing money due to the virus outbreak. GM's adjusted earnings were $2.83 per share, easily outpacing Wall Street's per-share projections of $1.43, according to a survey by FactSet. Revenue of $35.5 billion also edged out most expectations. Shares jumped almost 6% before the opening bell Thursday. The company swung back from a $806 million loss in the second quarter, when it was restarting factories shuttered for safety during the early stages of the pandemic. The Detroit automaker joined most global automakers in reporting better-than-expected earnings from July through September as sales across the globe started to rebound from coronavirus lockdowns, especially in China. GM sales in China jumped 12% in the third quarter, with sales of its Buick and Cadillac brands both rising more than 25%. In the U.S., GMÂ’s most profitable market, sales fell 9.9% in the third quarter compared with a year ago, but were a dramatic improvement over the 34% drop in the second quarter. Sales improved sequentially each month, the automaker said, an encouraging trend. GMÂ’s profit was boosted by higher-priced pickup trucks and large SUVs, which have seen strong sales in the U.S. through the pandemic. It was the best quarter on record for GM's Chevrolet Blazer. Sales of the Cadillac XT6 spiked 45% in the U.S. over last year. Large pickups also sold well. GM also said it was pumping $2 billion into its Spring Hill, Tennessee manufacturing plant to push its transition to produce electric vehicles. Last week, crosstown rivals Fiat Chrysler and Ford reported strong third-quarter net income. FCA said it made $1.4 billion for the period, while Ford earned $2.39 billion. Related Video: Earnings/Financials Buick Cadillac Chevrolet GM GMC

Cadillac's Super Cruise — look, Elon, no hands!

Cadillac is about to start selling vehicles with an autonomous driving mode and TechCrunch got an early look at the technology in a production car. "Wait for the green light and let go," the Cadillac engineer instructed. That's it. The car was driving itself. I, the person behind the steering wheel, was no longer the driver. Cadillac's Super Cruise system was driving. The 2018 Cadillac CT6 sped along U.S. 23 under the direction of Super Cruise. Traffic was light and the weather was perfect. The system held the Cadillac sedan in lane and responded appropriately to traffic. I spent an hour on the expressway and touched the steering wheel and pedals only a few times. Super Cruise made the drive boring. I think that's the point. Here's how it works Super Cruise is available once the driver navigates the vehicle onto an expressway. When ready, a little icon is displayed by the speedometer and the driver hits a button on the steering wheel to switch it on. Once the light bar on top of the steering wheel turns green, the driver can let go. Super Cruise is driving.This steering wheel light bar is key to the operation. When green, the driver knows Super Cruise is in control. Blue means the driver interrupted the system to change lanes and red means Super Cruise needs the driver to confirm they're paying attention and not checking Twitter. When active, Super Cruise controls the steering and speed, but again, only on an expressway. This is done through onboard sensors and using GPS and mapping data. GM employed GeoDigital, a startup in GM Venture's portfolio, to map 160,000 miles of expressways in the U.S. and Canada. The car company then used Super Cruise-equipped vehicles to test each mile. This combination of onboard systems combined with map data makes the system feel polished and sophisticated. During my admittedly limited time in the vehicle, the CT6 precisely held its position in the lane and confidently handled sweeping curves at speed. There was no wiggling or squirming — from the Cadillac or myself. The car was in control, and I felt safe. Although the driving conditions were perfect for my test ride, during adverse weather, the system will work normally until one of the key systems is unable to operate.