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Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Buy a Mosler Twinstar, the V16 Cadillac you almost wanted [w/video]

Cadillac was once famous for opulent, V16 luxury vehicles, but this bizarre 16-cylinder 1999 Eldorado that's for auction on eBay Motors isn't much like its ancestors. Dubbed the TwinStar, this beast features a Northstar V8 with 275 horsepower to drive the front wheels and a second Northstar with 300 hp is in the trunk to spin the rear axle. Each mill has its own four-speed automatic gearbox, and the result is a total of 575 hp of all-wheel drive fury in an incredibly weird package. The TwinStar's interior and exterior certainly don't hide the odd powertrain setup. To fit the engine in the trunk, the builders pushed the rear wheels further back and lengthened the wheelbase. There are also scoops low on each side to funnel air to the V8. Inside, there's a second ignition on the side of the center stack, and a digital instrument cluster replaces the glove box. It's sure to confuse any passenger you can convince to take a ride in this thing. Mosler, the supercar company known for models like the MT900, built five TwinStars, according to the auction. The seller links to the original review by Car and Driver, and the magazine noted that the sensation of the two engines working in tandem was rather odd. However, the TwinStar was a capable performer and ran to 60 in 5 seconds in its test. If you want to start your new year with the oddest vehicle possible, the TwinStar's auction sits at $5,600 with the reserve not met as of this writing, and it ends January 2, 2016, at 8:00 PM ET. If you can't wait that long, the dealer lists the car online for $39,900. There's also a spirited conversation on Bring a Trailer about this automotive oddity.