1956 Cadillac Deville on 2040-cars

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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.

New Cadillac ELR ad more educational, less controversial than 'Poolside'

Cadillac's first TV commercial for its ELR plug-in hybrid, Poolside, was a smash hit, in that a lot of people saw and talked about it. The 60-second spot didn't say the car was a plug-in, took potshots at the work ethic of all non-Americans and has raked in over a million views on YouTube (you can add one more here). Caddy's new ELR video will get a lot less media attention, but that's exactly the point. Cadillac claims it was happy with the way actor Neil McDonough strutted his way into the controversial ELR discussion. This time around, though, the coupe gets promoted in a more traditional way: with information about the car and what it can do - you know, drive on electricity, capture braking energy into the battery, go further on gas power when needed, those kinds of things – courtesy of GM's executive chief engineer for electrified vehicles, Pam Fletcher. The tone of the video has not been changed because of the Poolside controversy. David Caldwell, manager of Cadillac communications, tells AutoblogGreen that the new video is not destined for TV and is completely different because it's meant for a different audience. "It doesn't have any direct relation to Poolside," he says. "TV advertising is not necessarily the heart of marketing something like the ELR. Notwithstanding the fact that we had a very thought-provoking ad [laughs]." "We definitely have a need to communicate what the ELR is" - Cadillac's David Caldwell The way you reach out to people via the web is different than the mass-media techniques used in spots like Poolside during big TV events (it aired during the Winter Olympics). The two video spots are different because you need to offer different information in different ways, for example having an ELR website as well as an iPad filled with ELR information at the dealership. For Cadillac, TV is "not going to be the predominant methodology," used to sell the ELR, Caldwell said, "the web is closer to what you need to do to reach people. We definitely have a need to communicate what the ELR is. It's not television advertising at all." Caldwell said a handful of other short videos similar to the new one will go live in the near future, showcasing design and powertrain aspects of the car. Keep an eye out for them – just don't look for them on TV. You can watch the new video below.

GM cutting production at two plants

General Motors is continuing to adjust to excess supply of some of its brands' models. To get production more in line with the vehicles' actual demand, the automotive giant is idling two of its factories in North America in the coming months. The Orion Assembly plant is going to be down from March 9-13, according to an anonymous plant worker and another insider speaking to Automotive News. The factory builds the Chevrolet Sonic and Buick Verano, but there are plenty of both models sitting on dealer lots, including 216 days worth of Sonics, according to AN. The factory already had two idle periods announced to reduce the excess. In addition, downtime is scheduled at GM's "Flex" line at the Oshawa, Ontario, Canada, plant from April 13-17. This affects supply of the Chevrolet Camaro, Impala, Buick Regal and Cadillac XTS. Among them, the automotive giant has the largest supply of Regals ready for dealers with 213 days worth of them, according to AN. The future for the whole Oshawa factory is cloudy in general, though. There are rumors that it could close entirely in the future because the Camaro is leaving and the Regal and XTS might not last much longer than 2017. The Canadian government and the labor union there intend to put up a fight, though. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Cadillac Chevrolet GM orion assembly oshawa plant idle