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GM threatens predatory dealers with order cancellations, non-transferrable warranties

General Motors will launch a second salvo against misbehaving dealerships next week with a new set of policies aimed at curbing predatory markup strategies. With the new Chevrolet Corvette Z06, GMC Hummer EV SUV and Cadillac Escalade-V about to head into production, GM is putting its foot down yet again. Dealers that attempt to circumvent GM's markup restrictions by dealing directly with brokers or other resellers could find themselves in a particularly nasty spot, as the company is threatening to withhold future allocations and end the transferability of warranties when dealers facilitate the reselling of vehicles within 12 months.  While this may help curb some dealership chicanery, it's possible the real loser in such a deal could end up being the customer who unwittingly ends up with an un-warrantied vehicle. We suspect GM has accounted for that, but we'll have to wait until next week to find out exactly how these new policies will be enforced.

Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

2019 Cadillac XT4 First Drive Review | Fashionably late

SEATTLE, Wash. — The 2019 Cadillac XT4 compact crossover debuted in New York, Cadillac's recently-adopted home, several months ago. Since then, a lot's changed. Cadillac honcho Johan de Nysschen got the boot, the economy's continued to improve, and we've changed coasts to experience the XT4. The setting is Seattle and its environs, a place that embodies the moment – a town flush with tech money and outdoor lifestyle experiences. Oh, and traffic. Lots of that. What hasn't changed is that this is a vehicle that Cadillac desperately needs. Between and below the Escalade and XT5 are vast gulfs of white space that could swallow entire crossover-focused brands. The dealers, we imagine, howled. And de Nysschen was replaced, it turns out, by a career GM exec with a penchant for building bridges with dealers. Must be a coincidence. The XT4 should please everybody involved in that power struggle. It's cute, for one, which will make for happier dealer-customer interactions. It brings appreciable but unintimidating technological advances to a brand looking to flex some segment leadership muscles. And it doesn't strictly feel like a rebadged version of a lower-tier product, a bad habit that Cadillac keeps failing to kick. We'll discuss its competition within its segment, and how they compare to the XT4, in another piece to follow. If you're wondering where the XT4 comes from, the easiest way to think about it is as a cut-down version of the basic underpinnings of the XT5, wrapped in nicely-proportioned sheetmetal. To be blunt, there's more unadorned plastic on the lower fascia and rockers than we'd like at this price point, but the rest is handsome. Large, elegant lamps sit at both ends, set off with trendy creasing and little accent vents – Sport models have clear taillight elements, while others have red-tinted lenses. The XT5, itself a newer vehicle, looks outclassed and dated instantly when put up next to its sleeker, more modern little sibling. The interior, however, is more alike than different. The major shapes are similar, as are the placement of the switchgear. The 8.0-inch infotainment screen is, as in the XT5, embedded in a slabby wedge of dash. It's still a touchscreen, but a little dial now provides an alternate way to navigate. A Qi charging panel and easily accessible, but not too prominent, USB, charging, and aux inputs reside just above. The seats in our tester, a Premium Luxury trim, are covered in a soft, warm caramel-colored leather.