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2018 Cadillac XT7 three-row crossover spied [UPDATE]

UPDATE: Upon further consideration, and after speaking to some industry insiders, it appears this might not actually be a new Cadillac, but instead just a mule of the new Chevy Traverse. One source points out that the foglights are fixed, round units, which would be production spec and would not suggest Cadillac. Another source says the Cadillac version of the Traverse/Acadia/Enclave was cancelled, and development has stopped. Yes, a Cadillac of this size is expected to arrive – and elements of this prototype sure do look Cadillac to us – but it might be too early for this to be it. Cadillac is expanding its portfolio with a three-row crossover. This is it. Expected to be called the XT7, the new vehicle will give Cadillac an entry above the XT5 and below the hulking Escalade. Though the XT7 is heavily covered, we can see Cadillac's (?) bold grille and what looks like strong proportions. It'll probably look like a larger XT5, and you can sort of (maybe) see a similar roofline if you squint. Spy shooters caught it testing with the new Chevy Traverse and Buick Enclave, and they're all expected to use the new General Motors 3.6-liter V6 engine, like the recently revealed GMC Acadia. The XT7 could show up as soon as late this year or early in 2017. Its part of GM's push to capitalize on the red-hot crossover segment that has been fueled by low gas prices and Americans' thirst for utility. The XT7 would likely represent GM's most profitable play in this segment. Simply affixing the Cadillac badge on the front adds thousands of dollars to the sticker compared to a Chevy or Buick product. The XT7 will also give Cadillac a significant opportunity for growth – and perhaps allow it to gain on Mercedes and BMW on the sales charts. While the CTS and ATS have had mixed success, Americans have continued to show a willingness to buy Cadillac utility vehicles. The XT7 is the latest in Cadillac's product blitz following the XT5 and the CT6 range-topping sedan. Those two are the most critical Caddys, but the XT7 isn't far off. Related Video: Featured Gallery 2018 Cadillac XT7 View 11 Photos Image Credit: Brian Williams / SpiedBilde Spy Photos Cadillac SUV

2017 Cadillac XT5 First Drive

Thousands of feet above the Pacific Ocean, the winding roads that lead to the summit of Palomar Mountain turn from undulating curves to tight, blind, hairpin bends. Most drivers along this route are looking for a chance to exploit the limits of their cars' handling as much as one can on public roads, while taking in the bucolic views and endless blue skies. Up here, taking the thrilling curves at high speed is best left for drivers of performance cars who have platinum health insurance, lest the possibility of rolling a vertical mile toward Hellhole Canyon Preserve (we are not making this up) is not a deterrent. How different the experience is when you've chosen to climb the mountain in the 2017 Cadillac XT5, the crossover that replaces the SRX in a growing lineup of refined and redefined XT-named utility vehicles. An instant reminder that this SUV is not a Lotus comes as we enter a corner with a smidgen too much gusto, the tires begin to claw for traction, and the seatbelts tighten with the grip of sudden death. A quick tap of the brakes releases the belts, but not before a bead of sweat forms on the forehead. The overwhelming feeling is one of being unsure if this exercise is out of the XT5's comfort zone, despite Cadillac's goal of hitting the high-achieving sweet spot of the sport-luxury crossover segment. You'll know that an XT5 isn't an SRX when you first see one, although the differences are harder to tell when the two are parked side by side. The XT5 is the second Cadillac model to arrive since the brand learned to speak with a New York accent (albeit an affected Soho dialect) and it's a key pillar to the brand's chances at worldwide success. In 2015, the final year of sales for the five-year-old SRX, Cadillac managed to sell almost 100,000 of them around the world – no small feat for a model about to be replaced, and proof of the crossover's relative freshness and its popularity in export markets like China. Like the SRX that precedes it, the XT5 will be available with either front- or all-wheel drive (a $2,645 option), but that's one of few commonalities with the outgoing model. A new, lighter chassis helps the XT5 shed about 300 pounds, although Cadillac favors high-strength steel for bodywork and leaves aluminum for the engine and interior trim. In line with the revised brand guidelines for naming, SRX evolved into XT5, leaving room for larger and smaller utility vehicles to eventually join the lineup.

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.