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Cadillac scraps three-row CUV plans

Crossovers are one of the hottest automotive segments on the planet. Apparently, the idea of mixing the practicality of a station wagon with the looks of an SUV appeals to people whether they are in Cleveland or Shanghai because nearly every automaker is jumping into the market. So it was no surprise when early rumors suggested Cadillac was planning two, new CUVs to fit above and below the SRX. But things might have changed since then.
New rumblings indicate Caddy is taking a different route. Instead of two crossovers, only the compact is on the way, and the larger, three-row CUV on the Lambda platform to sit between the SRX and Escalade may be a goner. According to Ward's Auto, General Motors thinks that the other three-row, Lambda vehicles like the Buick Enclave and GMC Acadia compete too closely with the proposed Cadillac. The decision comes fairly close to the 2017 intended production date.
As far back as 2010, this Lambda-platform based CUV was considered highly likely for production. However, Cadillac Senior Vice President Bob Ferguson was somewhat cooler about it when he discussed the new crossover briefly last year. He said the model could use the Escalade name, despite its unibody chassis, but no decision had been made yet to actually produce it.

Cadillac Super Cruise priced from $2,500 on the 2021 Escalade

Super Cruise will find its next home in the 2021 Cadillac Escalade. The brand had rolled out Super Cruise three years ago on the CT6 as a $5,000 option for the top two trims, then switched up pricing for 2020 when MSRP increases on the top two trims made the more full-featured Super Cruise standard. Cadillac Society reports that the brand will make the hands-free driving technology an option on all but the base 2021 Escalade. On the Premium Luxury and Sport, the feature will cost $2,500, but requires the $3,650 Driver Assist and Technology Package that bundles adaptive cruise control, air ride adaptive suspension, automatic seat belt tightening and soft-close/cinching doors, enhanced automatic emergency braking and reverse automatic braking, and illuminated front sill plates. This brings the total to $6,150 for the middle two trims. The top Premium Luxury Platinum and Sport Platinum trims include the Driver Assist Package, making Super Cruise a no-fuss $2,500 option. The pricing is the same on the standard model and long-wheelbase ESV trims. Earlier this year, Cadillac announced the improvements its made to the SAE Level 2 autonomous driving system, prime among them being the automatic lane change feature. After the driver flicks the turn stalk to indicate the desired lane, the system will automatically locate an opening in traffic where it can safely change lanes. Numerous small improvements will make life easier for drivers, too, like 70,000 more miles of compatible highways, easier Super Cruise engagement, finer steering and speed control, smoother turns, better control through highway interchanges, and much richer map information. After the Escalade, the CT4 and CT5 sedans, and the XT6 are in line to receive Super Cruise blessings. A couple of years ago there were rumors that the XT4 and XT5 would get Super Cruise, but that's likely a ways off, if it happens. Related Video:

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.