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Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

GM will stop reporting monthly U.S. vehicle sales

DETROIT — General Motors said on Tuesday it will stop reporting monthly U.S. vehicle sales, saying the 30-day snapshot does not accurately reflect the market, and will instead issue quarterly sales. GM will also no longer report monthly sales in China, its largest market, and Brazil. GM will provide monthly data to the U.S. Federal Reserve, industry associations and government agencies across the globe, but that data is not made public. Analysts and investors rely on monthly U.S. vehicle sales not just to track the performance of individual automakers, but as a barometer of the health of the world's second-largest auto market and as an indicator of consumer confidence in the U.S. economy overall. GM and its Detroit rivals Ford and Fiat Chrysler have relied heavily on sales of high-margin pickup truck and SUV sales to boost profits. GM's total U.S. sales, its second-largest market, are down 3.2 percent for the first two months of 2018, reflecting a 6.8 percent drop in retail sales to individual customers, the company reported last month. GM executives have expressed frustration that comparisons of monthly U.S. sales results among rival automakers are distorted by short-term discount programs, and by differences in strategy for selling vehicles in bulk to rental car fleets. "Thirty days is not enough time to separate real sales trends from short-term fluctuations in a very dynamic, highly competitive market," Kurt McNeil, U.S. vice president for sales operations said in a statement. GM's actions could prompt other automakers to also switch to quarterly U.S. sales reports. Major automakers will report March U.S. new vehicle sales on Tuesday. Until the early 1990s, most U.S. automakers released sales results every 10 days. The former Chrysler Corp. stopped reporting sales on a 10-day basis in 1990, and rivals followed suit over the next three years. GM executives are betting that investors will quickly adapt to receiving U.S. sales data every three months, as investors in other retail sectors already have. Retailers such as Walmart report sales on a quarterly basis. Reporting by Joe WhiteRelated Video: Image Credit: Reuters Earnings/Financials Green Buick Cadillac Chevrolet GM GMC US

Cadillac's Blackwing V8 was the best engine at the worst time

It should be clear that GM knows how to innovate and engineer excellent products when it wants to. Cadillac's 4.2-liter twin-turbo Blackwing V8 is recent proof of that. Yet, as related in an extensive Road & Track piece, the Blackwing became victim to some of The General's bugbears, like the reticence to — for whatever reasons — unleash its excellence everywhere, fund that excellence, and be consistent with that excellence over the long term beyond the Corvette and full-sized pickups and SUVs. The R/T story relates tales told by "several people deeply involved with the Blackwing project" about how an engine 18 years in the making was deprived of its reasons for being in less than three. Starting around 2000, GM spent a dozen years building Cadillac up to the point where the American luxury brand could rationally flip to the chapter called, "Taking the Fight to the Germans, but for Real this Time." The first steps in the plan meant an exclusive platform and an exclusive engine. The platform was called Omega. You know the engine's name. They were going to be the aluminum-blocked fist and velvet glove enabling Cadillac to break on through to the other side of luxury — proper luxury to global standards, that is — with a range of beautiful and dynamic crossovers and sedans. An engineer involved in the project estimates GM poured $16 million into the Blackwing's clean-sheet development. Many more seven-figure sums went into creating the first sedan on the Omega platform, the CT6. The automaker dropped millions again poaching ex-Audi and Infiniti chief Johan de Nysschen, and moving Cadillac's headquarters to New York City in 2014. Further pallets of cash funded the development and debut of the Escala concept at Pebble Beach in 2016. In 2018, GM revealed its dramatically named DOHC twin-turbo V8. Considering what came before, the Blackwing clearly wasn't designed for cars. It was designed for world domination. However, against the backdrop of plummeting sedan sales, the CT6 didn't sell like GM had hoped. The automaker hesitated to marshal another fleet of Brinks trucks to fund entries into a cratering bodystyle. Removing sedans from the world domination equation created more difficult math for the crossovers and the Escala.