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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.

Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

GM lays off 450 at Lansing Grand River Assembly

General Motors will lay off 450 employees at its Lansing Grand River factory, The Detroit News reports, which is 100 more than the company said it'd be letting go last month. Lansing Grand River Assembly currently builds the Cadillac ATS and CTS, both of which have suffered sluggish sales, with the smaller sedan down 20 percent through last month and the larger model down 2.3 percent, The Detroit News reports. "We are adjusting plant production capacity to better align with market demand. Beginning in January 2015, the plant will operate on a single shift," a GM statement read, before explaining that not all the laid off Grand River employees will be jobless. Of the employees that have been laid off to make room for the single work shift, around 200 will transfer to the Lansing Delta Township factory, home of the Lambda-platform crossovers, GM's statement confirmed. The News expects this one-shift arrangement to continue until at least late next year, when the Alpha-platform Chevy Camaro transitions from General Motors' Oshawa, Ontario factory to Lansing. Cadillac President Johan de Nysschen said at last month's LA Auto Show, "It may not necessarily be permanent, a time may come when we've gained momentum and we can reinstate it. But for now, the adjustment to production capacity is in alignment with our plans for 2015."