Book by Cadillac is, well, closing its books temporarily. According to Cadillac, the brand will cease its car subscription service on December 1.
The Wall Street Journal first reported on Book’s hiatus and said the brand will “cancel” its service. A Cadillac spokesperson told GM Authority:
Following nearly two years of service, Cadillac will temporarily pause the Book by Cadillac program effective December 1, 2018. Book by Cadillac launched as a pilot program, providing the brand with valuable insights and contributing to Cadillac’s ongoing commitment in identifying new and innovative luxury experiences for their customers. The brand will use these insights to make adjustments to the Book by Cadillac strategy moving forward. Additional details will be made available at a later date.
While Cadillac insisted the program will be suspended temporarily, the WSJ reported a handful of cost factors led the brand to shelve the Book subscription service. Sources familiar with the program cited mounting costs associated with the back-end technology to run the system, often time-consuming and tedious functions.
Additionally, ensuring maintenance, repairs and detailing services were executed within 24 hours also added costs to the program. Expanding such a service outside of its pilot markets may have been deemed too costly to continue.
Book by Cadillac debuted in January 2017 as one of the first car-subscription services. Joining the program awarded a member the ability to swap cars up to 18 times per year, insurance coverage, maintenance, detailing, white-glove delivery and more for $1,800 per month. The service initially launched in New York City but expanded to Los Angeles and Dallas in November of last year.
Since then, numerous other luxury brands have jumped onboard with their own subscription services. Porsche, Audi, BMW, Mercedes-Benz, and others have launched similar services. However, Book’s demise may be proof that it’s difficult for automakers to diversify outside of the time-tested idea of selling and repairing automobiles.
Comments
And again, Cadillac decides to not be a legit luxury brand. Care by Volvo, Mercedes-Benz Subscription, Access by BMW, Audi Select, Porsche Passport. Cadillac is going from trying to be the pinnacle of luxury to the pinnacle of mediocrity! Dare greatly? They’re daring with how little they can offer and how little they can push the boundaries into new luxury services. Things are not looking up in Warren.
“Care by Volvo, Mercedes-Benz Subscription, Access by BMW, Audi Select, Porsche Passport. Cadillac is going from trying to be the pinnacle of luxury to the pinnacle of mediocrity!”
^ This.
Anyone who is applauding this announcement is someone who thinks that a luxury car experience begins and ends in the driveway and goes no further.
Everyone here gets mad at be because I call out GM on the Cadillac brand but seriously how many more things do people need to see to understand that GM is just unwilling to bring back the Cadillac brand to Tier One Luxury Status. The Bean Counters within GM will simply will not allow this to happen.
So basically what just happened was, Johan came up with a great idea that now all the other Luxury Brands jumped on but Cadillac is the one that Bowed out. You honestly cannot make this stuff up.
How many more reasons do people need to see what is actually happening.
All the recent Cadillac news is honestly disheartening to say the least. I so wanted the new 3 Series fighter (whatever they will call it) to be my next car. I did not want to be that 3 Series guy but it is what it is. I love the Alfa but that interior and Infotainment System is completely Subpar. Shocking that Alfa isn’t selling a lot of them.
I have been saying for the last 3/5 years now on this site that current customers mostly care about Interior Quality and Technology. The reason being is that those are really the two things that all customers can see and understand. You do not need to be a Gear Head to tell the difference Between a Chevrolet Cruze to a Honda Civic interior lets say. You can feel and see the difference. The unfortunate thing is GM simply doesn’t get it.
I watched Autoline the other day and the GM Head of the Big Truck Program literally admitted that the Ram interior is much more Luxurious. That is insane and unacceptable in my mind. They cost about the same so get it together GM.
I am still a Die Hard GM fan but I’m done making excuses for them.
Just Follow the VW/Audi Rule Book. Offer better Quality, more, more, more, and then even more than the competition for less and eventually you will be considered on the same level. How hard is this.
Why be first to market just to be first out of the market? This is like EV1 all over again!
Sounds like they need to get their back of house in order; perhaps a move to Cluth Technologies platform is in the plans?
I still love the idea of monthly membership and unlimited trades; particularly as Cadillac expands its portfolio.
Cadillac, i want to be a customer but you keep making decisions that forces me to your competitors!
Bean Counters is why. Very Simple.
GM has decided that the Stock price is more important to them at this time than the potential New Customers.
We’ve all seen how this movie plays out when you put profit above Customer Satisfaction. But that is the Current Business World we live in. As long as the board is happy who cares about the Future.
You know I believe for almost 60 plus years that GM is the best, and the are. But why don’t they believe it?
Shocking …. Not. The beancounters strike again.
For once Cadillac pioneered something in recent times & beat zee Germans to it, but noooooo GM couldn’t stand aside & watch Cadillac make something of themselves & had to pull the plug. Its as if they’re deliberately sabotaging Cadillac’s efforts into becoming a successful world class marque again & keeping them dependent on GM.
I wonder what’s next? CH Seoul? CH Shanghai? The V track day experience? I won’t be surprised if they kill the Cadillac Racing program next. Or the Cadillac brand itself when they need another bailout in the future.
There’s a special place in car hell for GM management & beancounters.
The service is placed on hold temporarily so Cadillac can learn from it and tweak it in the near future.
It is not cancelled out completely. Just like any new start-up company that offer a service or product, it is going to fail and does not always guarantee that it will be successful from the start.
However, I’m more curious of how many subscribed to the program?
I like that hardly anyone is reading between the lines of all the latest GM news.