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GM CEO Akerson calls out Tesla, says Cadillac will compete on EVs

Cadillac will be taking on Tesla Motors, the underdog EV manufacturer that's seen heaps of critical acclaim and stock market buzz with its most recent sedan, the Model S. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," Dan Akerson, the chairman and CEO of General Motors, told media in Washington, according to The Detroit News.
Akerson continued, telling The News, "We'll sell more Volts and lose less money on the Volts than they'll lose on the Model S." He also took time to point out that Tesla getting vehicles out to customers isn't a guarantee of success or permanence, using Fisker as an example, saying "Does anybody even remember Fisker? I mean, there were a number of them; they are all gone."
This strong talk from Akerson comes after Doug Parks, another GM exec, let slip that the Detroit-based manufacturer has an EV in the works that will cover 200 miles per charge and only cost about $30,000, a massive upgrade over similarly priced EVs that struggle to top 100 miles per charge. Until that vehicle arrives, though, GM is preparing the Cadillac ELR, a small coupe that, like the Volt with which it shares technology, uses a gas engine as a mobile generator to recharge the batteries. Akerson took aim at Tesla again, saying, "But I do think when the ELR comes out late this year, early next - it's certainly the same postal code as Tesla, but now we're going to move up. It's not going to be a mass-produced car."

Cadillac abandons plans for six-digit flagship sedan

So much for that party. Cadillac has announced that it is walking away from plans to build a high-dollar, rear-wheel-drive ultraluxury sedan. The low-volume model would have been based on the lusty Ciel Concept, and the production iteration would have carried a price tag well over $100,000. Executives with the automaker reportedly claim the model wouldn't have bolstered the brand enough to be worth the investment.
Even so, Automotive News reports Cadillac is still on track to build a range-topping four-door to go head-to-head with the BMW 7 Series and Mercedes-Benz S-Class. That model will likely be constructed on the company's upcoming Omega rear-wheel-drive platform, but we won't see it bow until at least 2016. Right now, the front-wheel-drive XTS sits at the top of the Cadillac lineup, and while that machine and it's twin-turbocharged V6 variant makes a compelling argument against certain luxury entries, it falls short serving as a legitimate competitor for the likes of the 7 Series and S-Class for enthusiast drivers.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.