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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.

GM laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.

Cadillac cancels sponsorship of Trump's PGA event

Cadillac has ended its sponsorship of the PGA's World Golf Championship, which has incited a response from Donald Trump, the presumptive Republican presidential nominee. Without the automaker's money to run the event at a property owned by Trump in Miami, the PGA announced it will move the WGC to Mexico City. Trump responded by saying, "Cadillac's been a great sponsor, but they're moving it to Mexico. They're moving it to Mexico City which, by the way, I hope they have kidnapping insurance. They're moving it to Mexico City. And I'm saying, you know, what's going on here? It is so sad when you look at what's going on with our country." In 2010, the PGA announced a multi-year deal with Cadillac to sponsor the WGC, starting in 2011. Since 2007, the event has been held at what is now known as the Trump National Doral Miami location. Trump took ownership of the property in 2012. Cadillac issued a statement to Autoblog that says: "We are proud to have been the title sponsor of the World Golf Championships-Cadillac Championship since 2011. We have made the decision, however, not to extend our sponsorship beyond this year. We thank the PGA TOUR for a great six years with the Cadillac Championship." Related Video: News Source: Talking Points MemoImage Credit: Elijah Nouvelage/Getty Images Auto News Government/Legal Cadillac Mexico City