By on February 3, 2017

BOOK by Cadillac Website

General Motors’ luxury division isn’t content with brewing coffee and showing off fashionable new threads at its new SoHo space — it also wants you to drive its cars.

Book by Cadillac, a monthly subscription lease service that launched one month ago, aims to get more people in the metal to the tune of $1,500 a month — and 24/7 Wall St. is already calling it a “major flop.”

According to the self-described “financial news and opinion” website, “[Uwe] Ellinghaus [Cadillac’s chief marketing officer] in particular has to be humiliated,” as there aren’t enough subscriptions available to supply the demand.

Say what now?

24/7 Wall St.’s argument centers on Book’s supposedly discerning clientele and the service’s current waitlist.

Consumers with enough cash in hand to spend $1,500 a month on a luxury vehicle subscription service, the site argues, want what Cadillac is offering — but they want it now, and they don’t want to be placed on a waitlist.

It is worth reminding Cadillac that luxury car owners do want “white glove” service, and not a misstep that will put many people off enough that some may never become customers.

However, 24/7 Wall St.’s opinion writer seemingly ignores a generally accepted belief of success: if demand outstrips supply for a particular product or service, it’s considered a success and not a “major flop.”

Still, we reached out to Cadillac to find out what factors currently limit available subscriptions, how many people are on the waitlist, and what the automaker is doing to make more subscriptions available.

Cadillac responded with a nearly audible shrug.

Cadillac spokesperson David Caldwell said there’s “not much more to be said now” regarding Book, but “aspects surely will evolve” and the program “will be confirmed or adjusted based on learnings from the implementation” as “the team focuses on the new project and new customers.”

So much for clarity.

Book is only available in New York City as of today, and the program’s logistics — the delivery of vehicles, etc. — are handled by local Cadillac dealers. Cadillac has not announced a timeline for Book’s expansion to other markets.

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22 Comments on “24/7 Wall St. Declares ‘Book by Cadillac’ a Failure; Cadillac Shrugs Off Questions...”


  • avatar
    DeadWeight

    *cough*

  • avatar
    30-mile fetch

    Seems like an alternative title could be “Cadillac Surprised by, Unprepared For, Uncharacteristic Success”.

  • avatar
    JimZ

    “[Uwe] Ellinghaus [Cadillac’s chief marketing officer] in particular has to be humiliated,”

    people like him don’t get humiliated.

  • avatar
    LeMansteve

    Calling it a failure is a bit of a stretch.

    From what I gather, this is a brand new service, the first of its’ kind. That makes it difficult to accurately judge demand.

  • avatar
    orenwolf

    Did you guys have a falling out with that site or something? Couldn’t you have written just as good an article explaining that Book has a waitlist and while Cadillac doesn’t see it as a problem, some analysts disagree?

    There’s a creepy stalker-ish level of focus on the opinion of one site on this offering, though I suppose, perhaps they’re the only ones who care enough to cover it?

    • 0 avatar
      DeadWeight

      I CAN’T HOLD IT IN!

      http://www.yahoo.com/news/bp/cadillac-s-new-boss-writes-a-manifesto—pure-unadulterated-class-162527483.html

      http://www.bloomberg.com/news/articles/2014-09-25/what-i-wear-to-work-cadillacs-melody-lee

      http://www.coolhunting.com/design/cadillac-interview-uwe-ellinghaus-cmo-nyc

      http://www.coolhunting.com/design/cadillac-house-nyc-john-bricked

      http://www.newnownext.com/out-designer-jason-wu-stars-in-cadillac-dare-greatly-commercial/02/2015/

      wwd.com/eye/parties/cadillac-cfda-party-nyfw-mens-10486134/

      http://www.businessinsider.com/r-exclusive-gms-barra-faces-roadblocks-in-rebuilding-cadillac-brand-2015-2

      http://www.autonews.com/article/20151020/OEM01/151029991/acura-cadillac-fall-the-most-in-consumer-reports-reliability-survey

      247wallst.com/autos/2016/10/27/cadillac-escalade-at-bottom-of-least-reliable-cars-list/

      https://www.thetruthaboutcars.com/2016/03/cadillac-resale-values-still-haunted-troubling-past/

      http://www.carbuzz.com/news/2016/7/9/Cadillac-Is-In-Trouble-Again-And-This-Is-How-We-d-Save-It-7734393/

      http://www.autonews.com/article/20141006/OEM02/141009883/de-nysschen:-dont-mess-with-me

      WHEW! Feel much better!

    • 0 avatar
      NormSV650

      @orenwolf

      Right!

    • 0 avatar

      There’s no falling out. There was no relationship to begin with. I also wouldn’t call a sub-500 word piece a “creepy stalker-ish level of focus.” But when you call something a “major flop” just because it has a waitlist, well, maybe you don’t have much of a story.

      That said, I contacted Cadillac fully expecting the folks in SoHo to have some pretty simple answers to our questions. Instead, Cadillac (and Book) PR decided to deflect. Not sure why, but it’s weird and frustrating.

    • 0 avatar
      RobbiesRobot

      Excellent observation regarding who ever the sour puss “I Hate Cadillac’s No Matter What” that wrote this piece of “lets crap all over them” article. Glad this person wasn’t trying to form opinions of George Westinghouse. Your response was perfect, not to mention sophisticated & witty. I’m going to be looking for more of your on target opinions.

  • avatar
    PRNDLOL

    How about a service named Pamphlet where I can get any ATS for 100 bucks a month?

  • avatar
    Dan R

    They sold the brand down the river a long time ago.(Early 1950’s?)
    In this affluent area, black Cadillacs take you to the airport.

  • avatar
    DeadWeight

    I don’t believe there’s any “wait list.”

    If there is any issue, it’s probably that GM’s horrendous bureaucracy can’t even locate and deliver vehicles (from a massive stockpile of unwanted vehicles, no less) in a sensible, orderly manner, for the few people who actually signed up for this nonsense, in working with mismanaged franchise dealers.

  • avatar

    Dear Mary and Dan:

    $12 billion, huh?

    We are VERY concerned about ROI. You have to rethink this, NOW!

    Big-Deal Institutional Investors

  • avatar

    There’s a W2 mentality at work here. The customer at this price point writes off the car or charges it to a business. The costs of the car are thus hidden or moved to another entity. I see a bunch of W2 folks looking at the costs of ownership in NYC, not realizing the way the car is actually costed out. Yes, $900 per month garage, $2500 per year insurance, etc, adds up fast, but that car is also registered outside NYC-relative or vacation home, so those aren’t real numbers for many either.

  • avatar
    Bollocks666

    So much untrue in this article, for starters Cadillac dealers have nothing to do with this. Zero.
    Cadillac hired a high end fleet management firm to handle it. Clients will never have to deal with a “dealer” Cars are delivered to their doors.
    And when supply exceeds demand how is that a failure?

    Just stating few facts.

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