AD #3282 – Cadillac Business Update; All OEMs Will Raise Car Prices Soon; China Policy Causing Production Stoppage

March 16th, 2022 at 11:55am

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Listen to “AD #3282 – Cadillac Business Update; All OEMs Will Raise Car Prices Soon; China Policy Causing Production Stoppage” on Spreaker.

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Runtime: 10:02

0:07 China Zero-COVID Causing Production Stoppage
0:33 Shipping Costs Are Skyrocketing
1:01 Prediction: All Automakers Will Raise Car Prices Soon
1:57 Cadillac Business Update
2:50 Global SAAR Down 20 Million Vehicles
3:26 Honda, GM, Nissan Make EPA List of Most Efficient Plants
4:07 XPeng Takes VTOL To Europe
4:42 Lynk & Co. Opens Metaverse Showroom
6:20 You Said It!

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17 Comments to “AD #3282 – Cadillac Business Update; All OEMs Will Raise Car Prices Soon; China Policy Causing Production Stoppage”

  1. S65AMG Says:

    https://carsandbids.com/auctions/9AW1bvJz/2006-lexus-ls-430

    This is a typical example of what used cars, and very old ones at that, fetch today at auction.

    This 2006 Lexus LS430 flagship model, 17 years old with a hefty 81,000 Miles, sold for a RI DI CU LOUS $19,250 just yesterday.

    I post this after reading Kit’s claim that he got such an excellent trade-in for his 4 year old Camry Hybrid (the Lexus is not even a hybrid, BTW). He may have believed this when he wrote it, but it is just another example of Kit’s “apples to watermelons” comparison. He 3was happy with it because in his previous trade-in he did not get as good a price. But today;s market has NOTHING in common with the market 2 or more years ago. And of course, you are paid in worthless inflated Biden $.

    Another interesting aspect of Kit’s trade was that while he could have bought a Sienna Hybrid Minivan, with a ton of space, far more than the Highlander, that could accommodate not only his current toy planes but any future much larger ones, he instead bought the CROSSOVER (and not a compact crossover at that!) he railed about for years HERE.

    And not that he is entitled to buy any vehicle he feels like, from the Corvette and the Cayman he never used as they are supposed to be used, to the SUV today.

    He is. What bugs me is the mind-boggling HYPOCRICY. He lamented the demise of the sedan, but he helped it when he bought his pile of junk so-called “collectible” Minivan back in the 80s.

    Recently he railed against people buying SUVs, EVEN SMALLER SUVS than his Highlander, even complained that the RAV4 Hybrid does not get as good MPG as this or that sedan (another apples to oranges comparison!), then he goes and BUYS an even worse SUV. And if anybody believes his claim that he will see an actual 35 MPG from his fatass Highlander, you need to get your head examined (no matter what the ‘official’ mpg is.

    So in conclusion, your dealer is a moron if he gave you more for your trade-in than current market prices, and will not be imn business long if he trades like that, but I am 99.9% sure he gave you MUCH, MUCH LESS than he will sell that Underpowered Slowpoke Camry Hybrid a few hours or days from now.

  2. wmb Says:

    I wonder why so many Cadillac dealerships back out of the brands transition to electric?! John or Sean, do either of you two have any theories? Was GM was demanding that they invest more of their capital to convert the dealership showroom and service department? Or were they just not convinced in the direction the brand is currently going in? Over the past 25-30 years, the GM brand has made a number of miscues, but most has stood by the OEM. For so many to just up and walk away, after having invested so much already, screams that there has got to be more to this story, IMHO.

  3. Kit Gerhart Says:

    1 Larry, I got about 75% of what it would cost to buy a new similarly equipped Camry for my 4 year old one, and I got the sales tax credit. What they gave me was obviously less than they could easily sell if for at that time, October 2021, but still good, for a 4 year old car. BTW, what you call an “Underpowered Slowpoke Camry Hybrid” has, basically, the same acceleration times as an E320 BLUETEC.

    As far as the FWD Highlander hybrid, it’s the closest thing you can get to a Camry hybrid wagon. Yeah, the Highlander is too tall, etc., but it has a flat floor with the seats folded down, and more than 80 inches of floor length, which is all I need. The RAV4 is noisier than the Highlander, and doesn’t have enough floor length for my toys. Also, the RAV hybrid has mandatory 4wd which I don’t want. I checked out the Sienna which has more room than the Highlander, especially 3rd row seating which I’d never use, but the second row seats don’t fold flat like the Highlander, and the Highlander has as much room as I need. The Highlander hybrid and Sienna get about the same mpg, and have similar “fast enough” ~8 second 0-60 times, and are priced similarly for the trim level I got.

    You really like giving people shit, when you probably haven’t even sat it either a Sienna or Highlander, and you obviously know little about either.

  4. GM Veteran Says:

    2 – there is more to the story. Cadillac demanded a very significant investment from all of their dealers, scaled to the expected volume they would sell. Most of the dealers that backed out were small volume dealers that couldn’t make the numbers work between the investment and expected return. Most of them also sell other GM brands. A few medium size dealers also declined. Cadillac actually wanted this to happen because they believe that the small volume dealers don’t deliver a true Cadillac experience to the buyers. However, Cadillac did not expect that many to decline. Their plan worked too well!

    The unfortunate thing is that this means there are now very large areas of the country with no Cadillac dealership to service current and future owners. This geographic coverage was one of the very few advantages Cadillac had over their other luxury competitors. It will cost them about 10-12% of their annual US sales. I think this was another blunder by Cadillac and GM management, but only time will tell.

  5. Kit Gerhart Says:

    John and Sean, can you post the number of dealerships the different car brands have in the US? It seems like Cadillac has a lot more than their competition, like Lexus, BMW, M-B, Lincoln, and Acura, but that might not be the reality. Also, it seems like VW has few dealers for a brand trying to go “mainstream” in the US, but maybe it’s just because they don’t have dealers where I am.

  6. Et Says:

    Since you have de died Not to remove S65AMG from your comments list (as requested by many others also), plus as stated that you would do if he didn’t change his posts-then Im gone.!

  7. MERKUR DRIVER Says:

    5) From some google searching, Ford has 3100 dealerships in the USA, GM has 4355 dealerships in the USA (Cadillac alone is 572). Toyota has 1700 dealerships(230 are Lexus dealers). VW has 650 dealerships. BMW has 339 Dealerships. Mercedes has 368 dealerships.

    Hope that helps.

  8. john o Says:

    the push to electric cars is to soon, people paying high fuel prices , to buy a new car is out of reach for many, looks like a depression coming

  9. Kit Gerhart Says:

    7 Thanks. I tried googling it a while back, but didn’t have much luck finding the information.

  10. MJB Says:

    John, I’m assuming, and quite frankly hoping, that all of these fly cars are LOADED with airbags everywhere, in the case of a crash landing.

    On the Metaverse question, at first glance, I’d say a big, fat, “No” to any car-buying decision hinged solely on a virtual test-drive or the like inside of this interactive platform.

    Hopefully the graphics catch up quickly with what people are sued to seeing, because from what I’m seeing thus far, the metaverse is looking like a first-gen 90′s video game. In this scenarios, I’d only buy a car through it if I had already decided on that purchase before hand.

  11. Kit Gerhart Says:

    10 I’d be more concerned about the flycars crashing and hitting people on the ground, if they fly over big cities. Also, if they fly at very low altitude, as seems likely, I’d expect them to be obnoxiously noisy, but time will tell about that.

    The only car I’ve ever ordered and bought without driving one like it, was the C8 Corvette. From the reviews, I was pretty sure I’d like it, and I knew that if I didn’t like it, I could easily sell if for more than I paid for it.

  12. John McElroy Says:

    #2. Cadillac has a lot of small dealers in small markets and they just couldn’t justify the cost of tools, training, etc. that they needed to invest to sell EVs. BTW, most of those are dual-brand dealers so it’s not as if they’re getting out of the business of selling cars.

  13. Drew Says:

    @6 ET – Sorry to read about your departure. The community is stronger when everyone shares their diverse perspectives. Admittedly, we are challenged by the assaults and erroneous math of one commenter. Ignore it. Gain insight and stimulation from the other fact-based and/or educated perspectives of all the others (except the one or two who fail at their claims of superior intelligence).

  14. Bobby T Says:

    13, we’ll said. Comment#1 is totally uncalled for. Kit has some of the most well thought out comments on this forum. “Larry’s “comments say all we need to know about him. Et: hang in there. Eventually Larry’s comments will get him kicked off. Let’s see, S65amg, Rey, Larry. Anyone care to guess what his next moniker will be?

  15. MJB Says:

    @11. Well, hey… With a car like that, who needs a test drive? That C8 is a no-brainer – much like a Bentley, I would imagine.

    Personally, I’ve bought 3 cars now (5 if you include the ones for my wife) without test drives. They were all AutoTrader finds in different states. I’ve never completed a purchase through AutoTrader, but instead use them to locate the car I want, then connect directly with the dealer and take it from there.

  16. Lambo2015 Says:

    I fail to see how VTOL’s will be any different than Helo’s Maybe less expensive and easier to fly I really doubt they will let just anyone fly them nor should they.

  17. Kit Gerhart Says:

    15 They might fly autonomously, like some of the small multirotor “drones” used to take pictures.