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Expect greater differentiation in GM's next-generation SUVs

General Motors says its next-generation Chevrolet Tahoe, Suburban, GMC Yukon and Cadillac Escalade models will offer shoppers improved interior differentiation. Car and Driver recently caught up with Chris Hilts, GM's creative manager of interior design, who said that the cabins will all feature unique instrument panels, consoles, center stacks and switchgear moving forward. Apparently GM is now aware that consumers may be bothered by the fact that today's $85,000 Escalade has effectively the same cabin as a $45,000 Tahoe. Hilts says SUV buyers want more refinement than their pickup purchasing counterparts - and those same buyers also want their SUVs to have more exterior differentiation between the company's Silverado and Sierra pickup lines. Shocking.
That all sounds good to us, but we've heard this song and dance before. GM made big waves about how different the new-for-2013 Silverado and Sierra would look from each other, but judging by what we've seen so far, GM's stylists are painting in shades rather than with the full spectrum. For more on the what to expect out of GM's new SUVs, click on the C/D link below.

2020 Cadillac XT6 fuel economy announced

Thanks to the EPA's fuel economy website, we finally know how frugal the 2020 Cadillac XT6, the brand's first three-row crossover, is with gasoline. The most efficient is the front-wheel-drive version, getting 18 mpg in the city, 25 on the highway and 20 in combined driving. The all-wheel-drive XT6 is just barely behind it with 17 mpg in town, 24 on the highway, and 20 combined. Both versions share the same 3.6-liter V6 with 310 horsepower and 271 pound-feet of torque and the same nine-speed automatic transmission. These numbers put the Cadillac XT6 very much on par with the competition. Both the four-cylinder and V6 versions of the Audi Q7 get 21 mpg combined, just beating the XT6, and both feature standard all-wheel drive. The Q7 with an inline-four makes less power at 255 horses while matching the XT6's torque at 273 pound-feet. The V6's 329 horsepower and 325 pound-feet beat the Caddy, though. Both Audi and Cadillac have almost the same starting price at about $53,000. Every version of the Acura MDX tops the XT6, including the least-efficient MDX A-Spec, which manages 21 mpg in combined driving. The non-A-Spec all-wheel-drive model gets 22 mpg combined, and the front-drive MDX hits 23 mpg. But the best is the Sport Hybrid that delivers 27 mpg combined. All of the non-hybrid MDXs are less powerful and less torquey than the Cadillac, though, at 290 horsepower and 267 pound-feet of torque. The Sport Hybrid is a bit more powerful and torquey than the Cadillac with 321 horsepower and 289 pound-feet of torque. The Acura does start at a lower price of just over $45,000. The XT6 does beat one of its three-row crossover rivals, though. Its 20 mpg combined rating is comfortably ahead of the Mercedes-Benz GLS-Class's most efficient V6 version at just 18 mpg. But the Mercedes also delivers 362 horsepower and 369 pound-feet of torque, and there are even more powerful, but less efficient, V8s on offer. The Mercedes is much more expensive than the Cadillac with a base price of over $70,000.

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.