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GM admits Cadillac ELR no real competition for Tesla Model S

Last year, then-CEO of General Motors, Dan Akerson, made it clear that the company lookouts at the Ren Cen had California automaker Tesla in their sights. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," he said. So, given the fact that the Cadillac ELR has a plug and sells for roughly the same price at the Tesla Model S ($75,000 vs $69,900, before incentives) and that Cadillac doesn't have any other electric vehicle on the horizon, you'd be forgiven if you thought that the way that Akerson wanted to challenge Tesla's EV success was with the ELR. Well, you'd apparently be wrong. "The ELR is a different car, it's a different price point. It's way-different technology." - GM's Mark Reuss Speaking yesterday in Detroit, GM's head of global product development, Mark Reuss, admitted that the ELR is not the Tesla competitor that Akerson promised. "People like to say the ELR is [competition for the Model S], but it's really not. It's a different car, it's a different price point. It's way-different technology." So, if we follow that logic to conclusion with Akerson's quote from last year, then the only way that Cadillac can eventually compete with Tesla is with a pure electric car, and that seems an outside chance, at best, for the foreseeable future. Through the end of July, Cadillac has sold 578 ELRs since it went on sale earlier this year. Tesla doesn't break out monthly US sales, but has sold 15,114 Model S EVs around the world in the first six months of 2014. For his part, Tesla CEO Elon Musk has already said that GM is headed down the wrong path with plug-in hybrids like the ELR or the Chevy Volt. Speaking about the Volt last year, Musk said, Chevy "sort of created something that's a bit of amphibian," which resulted in a car that's, "Okay but not great."

GM recalls Chevy Impala, Cadillac XTS for braking problem

Back in April, General Motors launched an investigation into braking issues affecting the 2014 Chevy Impala. Now there's a recall of both the Impala and the Cadillac XTS with which it shares its Epsilon II platform.
The issue apparently revolves around the electronic parking brake, which may not properly disengage. As a result, the rear brake pads could rub the rotor even while the vehicle is in motion, causing "significant heat, smoke and sparks." The earlier investigation had been launched following a complaint regarding the forward collision avoidance system, which is now either appears to have been unrelated or possibly a symptom of this larger issue.
The recall affects 2013-15 XTS models manufactured between February 14, 2012, and August 22, 2014, as well as 2014-15 Impalas manufactured between January 15, 2013, and August 22, 2014. The total number of affected vehicles reported by the National Highway Traffic Safety Administration comes to precisely 132,921 units, while The Detroit News reports a higher total of 205,000 units - the difference potentially coming down to the scope within the US and more broadly across North America. Dealers will contact owners to update the software in order to fix the problem.

Cadillac's Butler announces surprise departure

The Detroit Free Press is reporting that Cadillac's vice president of global strategic development, Don Butler, has resigned. Butler has held the position since April, after a term as vice president of US marketing for General Motor's luxury brand.
As the report explains, the timing here is pretty unfortunate for Cadillac. Butler is the third high-profile member of Cadillac's brass to depart in recent months, following the firing of US sales boss Chase Hawkins and the pending departure of Susan Docherty. Cadillac spokesman David Caldwell told the Detroit paper, "Bob [Ferguson]," global boss for Cadillac, "and other leaders asked him to stay on. Don's here in the office today - and told our team that his decision is purely on a personal level. After three years of putting everything into Cadillac, he is stepping away for some personal time, and to consider new avenues in his life."
Butler says his decision is part of a decision to "recalibrate, reassess my priorities." Whatever the reason, it's an unpleasant surprise for Cadillac, which has been on a surge in 2013, with 30-percent jump in sales on the heels of the hot-selling ATS.