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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Cadillac ATS was almost front-wheel drive

"We were going to do a front-wheel drive Cadillac compact off of Delta because it was going to be less expensive," Doug Parks, General Motors' vice president of global product programs, told the Automotive News during the Detroit Auto Show in January of this year. That sentence, referring to early ATS discussions more than five years ago - a period when the automaker, and the industry, was struggling - reveals that Cadillac's highly acclaimed rear-wheel drive compact sedan almost never happened.
Parks revealed that that automaker actually built a 2.0-liter test mule, on GM's Delta platform (shared with the Chevrolet Cruze and Buick Verano) and tested it in Europe. While the prototype was "pretty darn good," according to Parks, the team realized that in order to compete against Mercedes-Benz and BMW it would have to invest in a new rear-wheel drive platform.
The resulting all-new Alpha platform would eventually underpin the Cadillac ATS, and many would argue that its balanced rear-wheel drive chassis is its single most important attribute. Thankfully, the Alpha's goodness won't stop with the ATS. The upcoming 2014 Cadillac CTS and the future Camaro will also share its architecture, meaning the Cimarron will remain a distant memory.

Forget everything you know about Cadillac V

Cadillac rolled out the CT4-V and CT5-V performance sedans to a rather confused group of journalists last night. What are these cars? Only 355 horsepower in the CTS-V replacement? And just 320 horsepower for the ATS-V successor? Surely, there's something out of place — you can get up to speed with all the details here. Cadillac understood our confusion and explained what was going on rather quickly. The explanation means you have to forget everything you know about what "V" means for a Cadillac, though. Any Cadillac with the singular "V" badge on it previously has denoted the absolute top-tier of performance for that particular model. The CTS-V had the Corvette Z06 engine in it and made 640 horsepower. The ATS-V had a boosted 3.6-liter V6 good for a raucous 464 horsepower. They were equivalent to BMW M, Mercedes-AMG or an Audi RS. We're not talking about the lesser M or AMG models, either. No, the last Cadillac Vs were meant to compete with cars like the C63 or M3, the top-tier of performance in those brands' lineups. This is where you're going to have to start re-learning, because that's no longer the case for a Cadillac with a V badge gracing the rear end. What Cadillac has essentially done is demote what V means, with the intention of offering "something else" above it. With this new strategy, we'd equate a Cadillac V to something like an AMG 43, M340i, or Audi with an S badge on it. Cadillac has even come out with a car similar to this strategy before in the V-Sport. That didn't confuse everybody, though, because the name was different, and the strategy was clear. Now, Cadillac V is just a small stepping stone to these mysterious high performance cars still to come. We asked for any information concerning these future track-ready, fire-breathing monsters, but mum is the word for now. The naming strategy for something above a V is uncharted territory, and it'll also force everyone to learn what the top of the Cadillac lineup is all over again. Cadillac CT5-V View 6 Photos Why confuse folks like this? Cadillac wants to take advantage of the V brand cache in more of its lineup than just two super sedans. Think future vehicles like an XT5-V, XT4-V and others like that. Now that V doesn't mean a Nurburgring-conquering 500+ horsepower luxury muscle car, it makes it far easier for Cadillac to get V badges on everything. Obviously, GM isn't the first to think of this strategy.