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Cadillac Escalade gets $10,000 discount to ward off Navigator

Cadillac is once again defending its full-size luxury Escalade SUV from assault by the hot-selling Lincoln Navigator, offering $10,000 discounts to some current customers to keep them from switching brands. The discount, reported by Bloomberg, applies to lessees of 2016 model-year Escalades, with a $7,500 discount offered to owners, through May 31. It's at least the second time GM has resorted to incentives to keep customers in its cash-cow luxury SUV since Ford launched the all-new 2018 Navigator late last year. In November, Cadillac offered a $5,000 discount on the purchase or lease of the Escalade to any buyer who traded in a 1999 or newer Lincoln model. Analysts have estimated that the Escalade produces nearly $1 billion in yearly profit for GM. Escalade sales were up 14 percent in March and 8 percent during the first quarter, with retail sales up by double-digit percentages in both periods, higher transaction prices and market share expected to climb by 2 percent year-to-date, according to GM. That's impressive for a vehicle that has received only minor updates since the current generation went on sale for 2015. While it still trails the Escalade in sales, the Navigator has been riding a 63 percent increase in deliveries this year, with new models lasting on dealer lots an average of only 10 days and average prices ballooning to $82,500, according to Bloomberg. Ford earlier this year announced it was pouring $25 million into its Kentucky Truck Plant in Louisville to boost production of the Navigator and Ford Expedition. You can read Autoblog's side-by-side comparison of the 2018 Escalade and Navigator with competitors including the Lexus LX 570 and Infiniti QX80. Related Video: Image Credit: Cadillac Cadillac SUV Luxury sales incentives lincoln navigator sport utility vehicle discount

Cadillac's Butler announces surprise departure

The Detroit Free Press is reporting that Cadillac's vice president of global strategic development, Don Butler, has resigned. Butler has held the position since April, after a term as vice president of US marketing for General Motor's luxury brand.
As the report explains, the timing here is pretty unfortunate for Cadillac. Butler is the third high-profile member of Cadillac's brass to depart in recent months, following the firing of US sales boss Chase Hawkins and the pending departure of Susan Docherty. Cadillac spokesman David Caldwell told the Detroit paper, "Bob [Ferguson]," global boss for Cadillac, "and other leaders asked him to stay on. Don's here in the office today - and told our team that his decision is purely on a personal level. After three years of putting everything into Cadillac, he is stepping away for some personal time, and to consider new avenues in his life."
Butler says his decision is part of a decision to "recalibrate, reassess my priorities." Whatever the reason, it's an unpleasant surprise for Cadillac, which has been on a surge in 2013, with 30-percent jump in sales on the heels of the hot-selling ATS.

GM 8-speed transmission lawsuit granted class action certification

A story on Autoblog about potentially faulty 8-speed automatic transmissions from General Motors in 2019 has, as of the day this was published, 166 comments, mostly from owners of cars and trucks who say they are experiencing "a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." At the time, lawyers were seeking statewide classes in at least six states. As of today, the Detroit Free Press reports that a judge has granted class action status to a lawsuit brought by 39 plaintiffs across 26 states covering the transmission issue. The lawsuit specifically applies to vehicles that are equipped with GM's 8L90 or 8L45 8-speed automatic transmissions made between 2015 and March 1, 2019. Both of these transmissions are similar units, the 8L45 being slightly lighter version used in fewer vehicles than the beefier 8L90, and are designed for front-engine, rear- or all-wheel drive applications. The lawsuit alleges that the erratic transmission behavior makes some vehicles unsafe to drive. Ted Leopold, partner at Cohen Milstein and the court-appointed lead counsel for the case, said in a statement, "General Motors knowingly sold over 800,000 eight-speed transmission vehicles, which they knew to be defective for years, and yet made the business decision not to tell its customers before purchase." He added, "Dealers were directed to tell the customers that harsh shifts were ‘normal' or ‘characteristic.Â’ Such decision making is both highly irresponsible and emblematic of what GM believes it can get away with." The vehicles included in the court order with potentially faulty transmissions includes: 2015-2019 Chevrolet Silverado 2017-2019 Chevrolet Colorado 2015-2019 Chevrolet Corvette 2016-2019 Chevrolet Camaro 2015-2019 Cadillac Escalade and Escalade ESV 2016-2019 Cadillac ATS, ATS-V, CTS, CT6, and CTS-V 2015-2019 GMC Sierra, Yukon, Yukon XL, and Yukon Denali XL 2017-2019 GMC Canyon Some additional details of the lawsuit can be found at the Cohen Milstein site, including claims that "since 2015, GM has issued thirteen versions of a “technical service bulletin,” or “TSB,” related to this shifting issue alone." The statement from Cohen Milstein says that a "second action regarding GM vehicles with 8L transmissions is also underway in Battle v. General Motors, LLC, 2:22-cv-108783.