Close your eyes and think of China. I bet many of you still see seas of people with straw hats riding bicycles. J.P. Morgan and J.D. Power see a sea of luxury cars. Millions of them. (Read More…)

When you start a new job, it’s considered important to make a good impression. How does the saying go? “Start as you mean to go on”. Well, Dan Akerson, I suspect, tried to heed that advice and ended up putting his foot in it. The Associated Press reports that Dan Akerson, CEO of Government (soon to be “General” again) Motors, presented a webcast to GM employees. The usual CEO rhetoric came out. “GM needs to keep competitors on their heels rather than responding to what they do” said one GM worker, who asked not to be identified as the broadcast was not available to the public; despite being owned by them. “Attack mode” was another phrase used. But then Mr Akerson said that GM’s Cadillac brand has to make cars that are better than BMW’s. Now I thought this was quite a harmless statement to make. The CEO set a (quite high) benchmark to beat. Sounds reasonable, right? Not according to some. (Read More…)

In recent interviews with Automotive News [sub] and AutoObserver, GM’s recently-hired marketing boss Joel Ewanick dished out some of the insights that have earned him the reputation for being an ace image guy. He tells AN [sub] that

Consumers don’t buy General Motors. General Motors sells nothing

Oh, really? Because GM decided to remove the GM Mark of Excellence from its vehicles right around the time it emerged from bankruptcy, the better part of a year before Ewanick was brought on board. Since the first Government Motors joke emerged on the internet, GM has sought to distance itself from its corporate umbrella’s brand… and this is the insight Ewanick is bringing to the organization? Hell, Automotive News [sub] suggested that “Stop mentioning General Motors” when he was hired in June of this year. Which leaves Ewanick only one choice: don’t talk about General Motors more than anyone might imagine.

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Nothing but bad news from the video recorder; even when it was working, the fabulous sound of the supercharged CTS-V’s V-8 was left out.

This is a reasonably quick pit-to-pit lap of Monticello in the CTS-V Coupe. I was 3mph short of the local instructors at the end of the back straight. I’ll blame it on (the admirably fit) weight of my passenger, AutoGuide’s senior editor Colum Wood.

In the video, you can see the site of my off-track mishap and get a feel for what it’s like to push this very quick coupe around the track at cornering pressures of 1.1g or more. Don’t forget to click it to “480” to get the full resolution from the instruments.

As I crest Monticello Motor Club’s Turn 17, I am speaking directly to you, the TTAC reader, through the magic of a complete video, data, and audio recording system installed in my six-speed manual CTS-V Coupe.

“I have an idea,” I say, as I hold the throttle pinned to the stop way past the braking markers, over the hill, down the back of the left-hander, the speedometer swinging well into the triple digits, tach reaching to redline. “I think… this section can be taken flat.”

Flat, as in flat-out, as in without the mild braking before Turn 17 recommended by the instructors at Monticello and practiced by all reasonable individuals. And, indeed, I make it over the crest pointed in nearly the right direction… but any experienced racer knows that traction on the back of a hill is never as good as traction on the front of the hill. In under a second I’ve reached the absolute maximum slip angle of the tires. I haven’t done it. I’ve overstepped my limits, and the limits of the car. To turn more is futile and perhaps deadly, since I am pointed at the grass and traveling at over one hundred miles per hour. If I have any steering dialed-in to the car when I touch that rough surface, I can cartwheel end over end in the fashion of Antonio Pizzonia in a Jag S-Type. Have to exit the track straight. What happens now?

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What exactly is it that magnetically stops us in our tracks to look at a junky old car sitting at the curb and ponder it? Yes, it might unleash a treasured or long-forgotten memory of our youth. Or it might dredge up experiences we’d just as soon forget. But for most of us, there are only so many cars that afforded us memories of happily spilling our bodily fluids within or that spewed its hot fluids in our faces. In the bigger picture, since old cars aren’t exactly fossils or butterflies, they tell the highly variable story of the humans that created them: that rare spark of true brilliance, or the flights of imagination, for better or for worse. But all too often, it’s really schadenfreude. Yes, there are few things guaranteed to make one feel better about one’s own foolish mistakes and shortcomings than to chortle at someone else’s.  And today, I’m going to need a really big helping of schadenfreude if it’s going to keep me from slipping into empathy for this car. Because the truth be told, we’ve all built our own personal Cimarrons. Or at least come mighty close to it. (Read More…)

Sometimes I miss Bob Lutz so much it hurts.  First we’re teased with rumors of a Cadillac flagship and now this: a Zeta-based Buick flagship that’s the spiritual successor to the 1996 Buick Roadmaster. The news is exciting, even if it lacks the panache of a Lutzian rear-wheel-drive screed. But you have to read a little deeper for the real punch line.

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After ending the first quarter of this year with $35.7b in cash and equivalents, GM was in the best position it’s enjoyed in decades. And yet, with an IPO prospectus looming, The General is seeking a $5b line of credit and trotting out EBITDAPRO as its in-house measure of financial success. Both of these tactics are hallmarks of companies that are doing poorly, and GM has already learned how problematic loading up on debt and sliced-and-diced financials can be. So why is The General inviting criticism from outlets like Edmunds Autoobserver, which characterizes GM’s push towards an IPO as the rebirth of old bad habits? The simple answer: “business execution.” In other words, GM may have a lot of cash, but it’s got nearly as many demands on its resources as well… and these cash drains hardly add up to a coherent strategy.

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Sales of GM’s four “core brands” were up 36 percent last month [release here], however that number is compared to June 2009 sales, when GM was in bankruptcy. Even against this backdrop, however, GM’s sales show some signs of continued weakness. Though Chevrolet gained 32 percent in overall, its retail sales improved a mere 11 percent, meaning a huge number of Chevy’s sales went to fleets. Out of Buick’s 53 percent volume gain, retail sales increased only 28 percent. Cadillac had much less of a fleet problem than Buick and Chevy, increasing sales 339 percent and retail sales 35 percent. GMC did not release retail numbers for GMC, but noted that GM’s overall fleet sales were 59,571 for the month. That means nearly one in three vehicles sold by GM last month went to a fleet, a percentage that accounts for the lion’s share of GM’s sales growth. Once again, Detroit seems addicted to fleet sales…

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With Cadillac’s sales remaining stubbornly slack, the GM luxury rband is looking for every opportunity to win back customers. Image-conscious fashion victims have the CTS Coupe to coo over, but what about the Consumer Reports-reading luxury buyers who want a well-managed, hassle-free customer experience? Cadillac is trying to make inroads with these buyers as well, introducing a 4 year, 50,000 mile maintenance program for all 2011 model-year vehicles [full presser here]. The program includes

scheduled oil changes, tire rotations, replacement of engine and cabin air filters and a multi-point vehicle inspection

Sorry CTS-V drivers, but that doesn’t include free tires. And as much as we might like to laud Cadillac’s decision to back up its products, this move doesn’t really get them ahead of the game. Instead, Cadillac is only just keeping pace with the likes of BMW, which has offered a four-year, 50k mile scheduled maintenance program for some time. So now Cadillac can say that buyers who switch from BMW won’t be surprised by first-year maintenance costs, eliminating one possible frustration on the customer experience level. Still, this is hardly a perception-shifting, Hyundai Assurance-level gimmick for the luxury game. [Update: The BMW program does not include tire rotations. Standard Of The World after all?]

What is luxury? In the American car market, that question doesn’t have an easy answer. Driver-focused performers like BMW’s 3-series sell well here, but so do feature-loaded versions of mass market sedans, like the Lexus ES. Blinged-out baroque still has its adherents, but as the Napa Valley hotel where the Cadillac CTS Coupe was launched proves, a more subtle, sophisticated version of luxury is gaining popularity as well, differentiated by the use of recycled materials and environmentally-friendly technologies. So where in this fragmented and changing category does the CTS Coupe belong?
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Wuchtig. I’m sitting, panting, trying to catch my breath on the side of a tiny two-lane road running through the vineyards of California’s Napa Valley. I’m in an American car. I haven’t spoken German regularly since I was 18. Adrenalin has chased everything resembling a coherent thought from my mind. And yet, strangely, the only thing left banging around my speed-addled skull is a single German adjective for which the English language has no translation: wuchtig.
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Figuratively as well as literally, Bob Lutz’s work at GM is now done. Shortly before the towers fell (it seems so long ago) Rick Wagoner answered many an auto journalist’s prayers by recruiting the living legend to dramatically improve the company’s product development process and the cars it yields. In retiring (not for the first time, but probably for the last time), Lutz has declared this mission accomplished, with GM’s latest cars as proof. The Cadillac SRX 2.8 turbo is the most expensive—and so least cost-constrained—of these new cars. What does it tell us about what Lutz was able to accomplish, and about what work remains?

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No details yet, just an Inside Line confirmation from GM’s Karl Stracke that a seven-seat, Lambda-platform crossover “is absolutely a go.” It has long been rumored that the Cadillac Escalade would be replaced by a Lambda-platform crossover. The Cadillac crossover will join the Buick Enclave, Chevrolet Traverse, and GMC Acadia, as the Lambda becomes the only platform shared by all four of the General’s “core” brands (and previously, the Saturn Outlook as well).

Cadillac’s new ad campaign, with the tag line “The Mark of Leadership”, has received mixed reviews. Some have questioned the use of the word “mark” because it may evoke a model name long used by luxury competitor Lincoln. Others have said that the mark itself is in question, the Cadillac wreath and crest logo, is itself tainted by association with tacky blinged out Escalades of questionable aesthetic taste. Those points may be valid, but I think that there’s a more troubling problem with the slogan and that has to do with Cadillac’s heritage.

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