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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.

All-new 2019 Cadillac XT4 crossover debuts in New York

Cadillac spent years and years improving its mainline sedans, the CTS and ATS, turning them into awfully good impressions of BMWs from a few years before. The thing is, great sedans aren't selling, and crossovers sure are. Cadillac's XT5 is the only crossover in the lineup, something that's had American Cadillac dealers gnashing their teeth and wailing — although anyone they can upsell into an Escalade can staunch the bleeding. That brings us to the new XT4, which is smaller than the XT5 but even sharper than its bigger sibling. Let's take a closer look at this new two-row luxury crossover. For one, it's based on what Cadillac calls a unique platform. That may be true, technically, although it's likely related to the Equinox/Terrain on some level. Platforms are becoming quite flexible: Look at Volkswagen's MQB, under everything from Euro hatches smaller than our Golf to the three-row Atlas. Whatever else it is underneath the skin, all XT4s will share one powertrain: the corporate 2.0-liter turbocharged inline-four, paired to a nine-speed automatic transmission. View 14 Photos The engine puts out a healthy 237 horsepower and 258 pound-feet of torque, putting it just a hair underneath its closest domestic rival, the Lincoln MKC with the 2.0-liter EcoBoost. Of course, the 2.3-liter MKC beats the XT4 handily, but that's another story. Power is produced with the help of a twin-scroll turbocharger. All-wheel drive is available, with a driver-selectable rear axle disconnect to save a small amount of rolling friction. Cadillac estimates it'll be good for 30 MPG on the freeway, but we haven't seen official results to confirm that. A few other changes that'll affect driving: electro-hydraulic brake assist, a first for Cadillac and mainly a fuel-saving measure; and Continuous Damping Control, which alters the damper's valve continuously based on a number of parameters. It's almost certainly used here because it's lighter and less expensive than air suspension or MagneRide, and it is optional on XT4. CDC or no, all XT4s utilize a front strut and five-link rear suspension. All XT4s also ride on 18-inch wheels in various designs. The trim strategy is mildly interesting. The base model is the Luxury, and then you can choose a Sport (black exterior trim, unique wheels) or a Premium Luxury (bright trim and satin-brushed accents). The interior options are suitably upscale and premium, and we'll have more to say about them a little later when we can see this car up close.