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Cadillac dealers frustrated over Escalade production snarls

Lincoln went through it during the launch of the MKZ last year, Jeep went through something similar with its Cherokee launch, and now the 2015 Cadillac Escalade has apparently caught the bug: dealer delivery delays because of quality control checks. Automotive News reports that Cadillac dealers have been waiting three times longer than usual - a month or more - from the time an Escalade leaves the assembly line to when it gets delivered. Worse, dealers are saying they don't always know where their vehicles are in transit, or when they are set to arrive. The situation has upset customers who have put down deposits and things have gotten so bad that some dealers have reportedly stopped taking pre-orders.
Cadillac says it has the delay, called "dwell time," down to two weeks, and it expects to cut that to a week by the beginning of September. The company said "a lengthy quality-assurance process on some interior parts" has caused the lag, the report citing additional issues with figuring out which vehicles should be delivered first. A spokesman said that more trucks have been put in the distribution system to work through the backlog, but it's clear it's still going to take some time to set things right, with one dealer telling AN that cars ordered in February and March still haven't arrived.
Brand chief Kurt McNeil said additional personnel are at the Escalade's Arlington, Texas factory to speed up the checks, and spreadsheets tracking every order have been distributed to field staff. Even with the snafu, though, the Escalade is Cadillac's best seller through July.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Watch the 2014 Cadillac CTS live-stream reveal

Despite many an image leaking onto the Internet over the weekend, today is the official day for the debut of the all-new 2014 Cadillac CTS. You want the nitty-gritty details of Cadillac's new sedan? Click here.
If you want to watch the 2014 CTS makes its live debut in front of a throng of auto journalists, then just watch below, as Cadillac is live-streaming the event at 7:15 PM EST. That's only a few minutes from now, so click here to start watching, and stay tuned for our first live images of the CTS from the New York Auto Show.