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Cadillac is returning to endurance racing with a new prototype in 2017

In two months, Cadillac will return to top-tier endurance racing with its all-new Daytona Prototype International racecar after 14 years away. The car, which adheres to IMSA's new DPi regulations, looks as long, low, and Cadillac-like as anyone could have hoped. It's set to debut at the Rolex 24 at Daytona and will compete head to head with the likes of Mazda and Nissan in what is shaping up to be one of the most diverse and exciting forms of American motor racing in years. The new car will be run by Wayne Taylor Racing, the team that previously fielded the Corvette Daytona Prototype. Wayne Taylor himself has won the 24 Hours of Daytona twice, in 1996 and 2005. He now manages the team and leaves the driving duties to his two sons, Ricky and Jordan. They'll be joined in the cockpit by Max Angelelli, Wayne Taylor's teammate in 2002 at Cadillac's last unsuccessful attempt at endurance racing. To understand Cadillac's new car, officially called the DPi-V.R., you need to understand IMSA's DPi category. Basically, manufacturers are allowed to base their car on one of four chassis that follow the FIA LMP2 regulations. The chassis come from either Dallara, Onroak Automotive, ORECA or Riley/Multimatic. Cadillac will base their car on the Dallara platform. The DPi regulation differ from the LMP2 in two major ways: non-standardized engines and the ability to change certain parts of the bodywork. The DPi regulations are intended to give the variety of the top-tier LMP1 cars at a fraction of the cost. When it came to choosing an engine, Cadillac wanted to power the new car with something kinda sorta production based. The new car will use a naturally aspirated 6.2-liter pushrod V8 that shares some base architecture with the engine in the current CTS-V. While the power output hasn't been announced, expect about 600 horsepower. While that's down compared to the CTS-V, there is far less mass to move around as the Dallara chassis is a svelte 2,050 lbs. Since all the teams will be running different engine configurations, expect restrictors of some sort to help balance the power disparity. The parts of the body work that can be modified - The nose, sidepods, rear wheel arches and rear valance - have all been designed to mimic Cadillac roadcar design elements. Even the wheels look like they were pulled straight from the CTS-V. The front splitter, the floor, and the diffuser are common elements shared with other DPi cars.

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:

Luxury car brands scrambling to avoid a blue Christmas

DETROIT — When financial markets surge to new records, sales of luxury cars usually rise, too. Instead, October U.S. auto sales reports on Wednesday showed that a collapse in sales of luxury sedans is accelerating. Consumers have gradually shifted over to luxury sport utility vehicles from sedans in the past decade, but the trend — which has occurred in both the non-luxury and luxury sedan segments of the auto market — was particularly pronounced in October. Sales of Daimler AG's Mercedes-Benz S-Class, long a global benchmark for large, premium sedans, plunged 49 percent in October, and are down 24.8 percent for the year to date. General Motors' Cadillac brand said it sold just 779 of its CTS sedans in October. Demand for that car, designed to compete with German luxury sedans, is down nearly 33 percent for the year. "There's still a significant portion of the market that wants a car, but I'm sure there were people who preferred a horse to a car at one point." Cadillac's best-selling model this year is the XT5 compact SUV, which has more than doubled sales from a year ago. The shift within the luxury vehicle market away from sedans toward SUVs of all sizes is forcing some of the most prestigious brands to scramble to add SUV models to their lineups or boost SUV production to meet demand. "In the short term, there will be pressure to add (consumer) incentives, cut production or both," said Cox Automotive analyst Michelle Krebs. "And we just don't see an end in sight to this trend." The Dow Jones Industrial Average has been trading at all-time highs, usually a good sign for luxury sedans, but as major automakers reported new U.S. vehicle sales for October on Wednesday, sales for passenger cars continued their slide while luxury SUV and crossover sales rose again. According to Kelley Blue Book data, in 2007 luxury sedans made up 7.6 percent of U.S. new vehicle sales, while luxury SUVs made up 4.2 percent. Through September this year, luxury SUVs made up just over 7 percent of the market, compared with 4.9 percent for luxury sedans. In the short term, luxury brands could use holiday season sales promotions to clear slow-selling sedans off dealer lots, analysts said. Toyota's Lexus brand said on Wednesday it will launch its "December to Remember" year-end sales promotion for the 18th straight year.