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Cadillac Super Cruise needs subscription after free trial period

Not long ago, Motor Trend broke the news that Cadillac's Super Cruise is only free for the first three years, after which the Level 2 autonomy system moves to subscription pricing. MT's report came on the eve of 2018-model-year Cadillac CT6 buyers being asked whether they wished to retain access to their Super Cruise. A few days after that report, Cadillac said it would give those first-year buyers of the technology — "the helpful adopters" — another free year, so they'll need to make a decision in August 2021 along with the 2019MY CT6 buyers. After a bit of digging by other outlets, it seems Motor Trend broke the Super Cruise news primarily to members of the media (including us); the details in the report have been communicated to customers in fine print in at least two places. First, let's clarify that the subscription is for OnStar, not Super Cruise only. Cadillac has made clear since the beginning that the tech needs an active OnStar plan, a Wi-Fi Hotspot, a working electrical system, cell reception, and a GPS signal to work. Knowing that, and knowing OnStar is only free for one month on new vehicles — GM shortened the free trial last year from three or six months — before requiring a subscription, might have encouraged someone to ask the question before now (we didn't...). In response to Jonathan Gitlin at Ars Technica asking Twitter about who knew, Bozi Tatarevic responded, "It might not have been released in the press materials but I remember reading about it in the order guide documents for the CT6 and noting that it was tied to OnStar and would eventually require a plan that started at like $25 per month." And Tatarevic pointed to this snippet in The Philadelphia Inquirer review of the CT6 from 2018: "The Super Cruise feature is part of OnStar and is free for three years. OnStar advertises subscriptions from $24.99 to $59.99 a month." If Super Cruise is only free as long as OnStar is free, then new car buyers now will get the tech for one month. Owners who cancel OnStar or choose a plan that doesn't include Super Cruise will still benefit from adaptive cruise control and lane-centering.   The automaker hasn't said what Super Cruise pricing will be, but the OnStar site apparently reveals the answer. There are six plans listed on the Compare Plans page, but two are combinations of other plans.

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.

J.D. Power customer survey of dealers counts Cadillac, Buick as big winners

Cadillac and Buick have taken the trophies in J.D. Power's latest Customer Service Index Study examining satisfaction with dealer service. Surveying more than 90,000 owners and lessees of 2009-2013 model-year cars, the study found that those with pre-paid maintenance packages were ten percent more likely to buy their next car from the same brand.
Dealer satisfaction scores have improved overall, Cadillac nabbed the luxury segment ahead of Audi and Lexus, taking the crown that Lexus held last year. Buick keeps the mass-market dealer satisfaction win in the family, finishing ahead of Volkswagen and last year's winner GMC. The study also found that service department use of tablets increased customer satisfaction, as did "best practices" like "providing helpful advice." Who knew?
You can find details on those and more findings in the press release below.