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Cadillac chief marketer admits ELR is 'a big disappointment'

During the Cadillac XT5 global launch in Dubai, Automobile interviewed Cadillac Chief Marketing Officer Uwe Ellinghaus and got the CMO to touch on just about every major issue affecting the brand and the industry. After two years on the job, having come from 15 years at BMW, Ellinghaus naturally started with the "passionate Cadillac customers" and "iconic brand" spiel, then they got into a top-down look at where America's preeminent luxury brand stands. Ellinghaus said Cadillac is in a period of transition, lately focused on smaller and more performance-oriented vehicles, which has alienated a chunk of veteran customers and left others trying to figure out what Cadillac is about. He believes that "for a few more years, the products will probably be stronger than the brand," while he does his work of conveying what the company has to offer. But the brand had to make the switch, because "Generation X and Y will make 80 percent of all actual buyers in the next five years..." On top of that, he'll be working on making sure the customer and dealership experiences are where they need to be. Speaking of dealers, Ellinghaus thinks the future will not be brick-and-mortar shops, but digital pickup-and-delivery services. "Nobody wants to go to a dealership for service and maintenance," he says. He said the ELR has been "a big disappointment," but it has taught Cadillac that converting its existing line-up to plug-in hybrids is a better way forward. However, he characterized the plug-in hybrid as "the next all-wheel drive," in that everyone's going to offer it soon, so it will be "an entry ticket into luxury automobiles rather than a differentiating aspect." The CMO thinks the CTS is suffering because of the decline in the US midsize luxury sedan market in general thanks to the SUV and crossover craze, so the brand really needs another small SUV. Head over to Automobile for more of Ellinghaus' intriguing answers, like "I do believe that very long-term hydrogen is really the way," and "it's time to get real" in Europe. Taking a dig at Volkswagen on that last matter, he also said, "I think the absence of the diesel is not as much of an issue as it was eight weeks ago." Related Video:

2019 Cadillac XT4 interior has actual buttons, no more touch-sensitive panel

Cadillac makes some highly stylish cars that are excellent to drive. In the realm of infotainment, there was room for improvement. The CUE infotainment system is infamous for being complex and annoying. One particular sore point was the touch-sensitive panels used for basic functions and their unrefined, "haptic feedback" clunk. Thankfully, spy photos show that Cadillac is changing tack both with buttons and infotainment controls in general. As seen above, there don't appear to be any capacitive buttons in sight. Instead, the XT4 has the "piano-key" buttons that are in vogue now. The most prominent are metal-finish buttons that control climate settings indicated by corresponding symbols above the buttons. Below that are additional buttons for seat controls and at least one safety feature, the parking warning. These should be vastly easier to manipulate than tapping and hoping you've engaged the correct function. This doesn't mean there won't be any touch-sensitive controls available, but they've at least been minimized. Other physical controls we spotted are down on the center console near the shifter. It looks as though the CT6's odd touchpad won't be making an appearance in the XT4 as there seems to be a more conventional knob instead. If it's indeed for the infotainment system, it would be a redundant controller as the upper screen's home button and fingerprints would indicate it's very much touch-operated. Like other Cadillacs and GM products in general, it's safe to say that Apple CarPlay and Android Auto will be available and possibly standard. There are a couple other interesting additions besides the physical controls. There's a Near Field Communications (NFC) logo embossed in the dashboard, indicating the car will support NFC pairing of phones. The XT4 also dispatches the more traditional mechanical shifter for a more modern monostable joystick like the found in some Buicks, but with a different shape. We're currently expecting the XT4 to be revealed late in 2018. It will be based on the Chevy Malibu platform, it'll probably stick with turbocharged four-cylinder power, and offer front- and all-wheel drive. Related Video: Featured Gallery 2019 Cadillac XT4 spy shots View 19 Photos Image Credit: Brian Williams Spy Photos Cadillac Technology Infotainment Crossover SUV Luxury cue cadillac xt4 cadillac cue

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.