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GM admits Cadillac ELR no real competition for Tesla Model S

Last year, then-CEO of General Motors, Dan Akerson, made it clear that the company lookouts at the Ren Cen had California automaker Tesla in their sights. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," he said. So, given the fact that the Cadillac ELR has a plug and sells for roughly the same price at the Tesla Model S ($75,000 vs $69,900, before incentives) and that Cadillac doesn't have any other electric vehicle on the horizon, you'd be forgiven if you thought that the way that Akerson wanted to challenge Tesla's EV success was with the ELR. Well, you'd apparently be wrong. "The ELR is a different car, it's a different price point. It's way-different technology." - GM's Mark Reuss Speaking yesterday in Detroit, GM's head of global product development, Mark Reuss, admitted that the ELR is not the Tesla competitor that Akerson promised. "People like to say the ELR is [competition for the Model S], but it's really not. It's a different car, it's a different price point. It's way-different technology." So, if we follow that logic to conclusion with Akerson's quote from last year, then the only way that Cadillac can eventually compete with Tesla is with a pure electric car, and that seems an outside chance, at best, for the foreseeable future. Through the end of July, Cadillac has sold 578 ELRs since it went on sale earlier this year. Tesla doesn't break out monthly US sales, but has sold 15,114 Model S EVs around the world in the first six months of 2014. For his part, Tesla CEO Elon Musk has already said that GM is headed down the wrong path with plug-in hybrids like the ELR or the Chevy Volt. Speaking about the Volt last year, Musk said, Chevy "sort of created something that's a bit of amphibian," which resulted in a car that's, "Okay but not great."

Cadillac abandons plans for six-digit flagship sedan

So much for that party. Cadillac has announced that it is walking away from plans to build a high-dollar, rear-wheel-drive ultraluxury sedan. The low-volume model would have been based on the lusty Ciel Concept, and the production iteration would have carried a price tag well over $100,000. Executives with the automaker reportedly claim the model wouldn't have bolstered the brand enough to be worth the investment.
Even so, Automotive News reports Cadillac is still on track to build a range-topping four-door to go head-to-head with the BMW 7 Series and Mercedes-Benz S-Class. That model will likely be constructed on the company's upcoming Omega rear-wheel-drive platform, but we won't see it bow until at least 2016. Right now, the front-wheel-drive XTS sits at the top of the Cadillac lineup, and while that machine and it's twin-turbocharged V6 variant makes a compelling argument against certain luxury entries, it falls short serving as a legitimate competitor for the likes of the 7 Series and S-Class for enthusiast drivers.

GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.