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GM threatens predatory dealers with order cancellations, non-transferrable warranties

General Motors will launch a second salvo against misbehaving dealerships next week with a new set of policies aimed at curbing predatory markup strategies. With the new Chevrolet Corvette Z06, GMC Hummer EV SUV and Cadillac Escalade-V about to head into production, GM is putting its foot down yet again. Dealers that attempt to circumvent GM's markup restrictions by dealing directly with brokers or other resellers could find themselves in a particularly nasty spot, as the company is threatening to withhold future allocations and end the transferability of warranties when dealers facilitate the reselling of vehicles within 12 months.  While this may help curb some dealership chicanery, it's possible the real loser in such a deal could end up being the customer who unwittingly ends up with an un-warrantied vehicle. We suspect GM has accounted for that, but we'll have to wait until next week to find out exactly how these new policies will be enforced.

2020 Cadillac XT6 revealed as Caddy's first big crossover

The 2020 Cadillac XT6 rounds out Cadillac's crossover lineup with a range-topper. It also presents an option for people who wanted a three-row Cadillac but didn't want something as large and truck-like as an Escalade. This is partly achieved through using a naturally aspirated 3.6-liter V6 powering either the front or all four wheels. A nine-speed automatic transmission sends the V6's 310 horsepower and 271 pound-feet of torque to the ground. The XT6 is split between two trim levels that appear to be marketed as different rather than one being better. The first is redundantly called Premium Luxury. A chrome grille and trim, red taillights and unique 20-inch wheels distinguish it as such from the outside, while wood trim covers the inside. The second is Sport, and black trim replaces the chrome, red taillights are swapped for clear, and carbon fiber supplants the wood inside. It has different 20-inch wheels as well as optional 21-inch pieces. The Sport gets mechanical tweaks, too, including continuously adjustable shocks and a standard all-wheel-drive system with yaw control. No matter the trim, all XT6's get an interior that builds upon the XT4 with more physical buttons and a control knob for the infotainment for scrolling through menus and lists. Safety and convenience features abound, including standard automatic emergency braking, blind-spot warning and lane-keep assist. Optional features include night vision, parking assist with braking support, a heads-up display and a camera screen mirror. Adaptive cruise control is also available, but it's not Super Cruise, our Tech of the Year award winner. Cadillac will start taking orders for the Tennessee-built crossover this spring. The final release date hasn't been announced yet, though. That information, along with pricing, should come closer to when the crossover begins production. Related Video:

A few signs that Cadillac's revival is taking hold

Only a flatworm would not have predicted the Cadillac ATS would help increase sales for America's erstwhile luxury brand of record; however, even the best automotive oracles didn't realize by how much: The ATS fueled a 49-percent increase of the brand's year-on-year sales in March, the sixth straight month of growth for Cadillac. The momentum helped push General Motors to post a 6.4-increase in sales in March versus 2012, leading its domestic competitors.
Dealership salesmen are among the first to register the shift occurring at Cadillac. A Texas dealer related an incident in which he helped a mother affix a baby seat in a car for a test drive, explaining that as opposed to the older buyers that are still a Cadillac mainstay he's getting "a pretty diverse group that's coming through the door now" who are "younger and better educated." Aided by incentives on the ATS, Cadillac's sales are up 38 percent so far this year, overtaking Acura as the fourth best selling luxury brand, and GM stock is benefiting with incremental gains because of it. Based on early response, the new 2014 Cadillac CTS should keep things going in the same direction.
The trend at the Wreath and Crest is part of a larger sales trend happening among domestics - with other models like the Dodge Dart and Ford Fusion doing well - and overall US car sales. Head over to Bloomberg for the big picture and role the ATS plays in it.