Why Is GM Tries A Subscription Plan For Cadillac's Latest Addiction?

Netflix is the world’s newest addiction. The ability to watch anything the heart desires for a set price every month is the consumer’s dream. Consumers can switch movies at the touch of a button and hold all the power with on-demand access. Noticing this, General Motors has decided to create a program where customers can trade between Cadillac’s 10 models up to 18 times a year for $1,500 a month. This price includes all possible switches and ownership costs, including insurance and repair costs. GM is calling this “Book by Cadillac” and subscribers are paying monthly to avoid any lengthy commitment. Several other car companies have also begun using this methodology in issuing vehicles, though these services are only available in large cities.

Colias covers the automotive industry and General Motors Company for the Wall Street Journal. Prior to this, he spent several years at Automotive News where he also covered General Motors. With much experience reporting on the automotive industry and General Motors Company, he is a qualified reporter. By spending so much time reporting on GM, he may feel a connection and be subconsciously compelled to write about them in a more positive and slightly biased light. However, this is not evident in this article. Colias employs mostly facts about GM and other automotive companies. The article essentially strives to compare the ways in which automotive companies are differentiating themselves in a market that is slowly diminishing due to the increased use of ride-sharing and the invention of self-driving cars. The statistics and quotes utilized in the article come from credible and established sources such as senior analysts at Kelley Blue Book, a capital analyst, and executives in established automotive companies. Each statement that Colias makes is qualified by a quote from a worthy source. While the article is titled to greatly feature GM’s new service “Cadillac’s Book,” the article also largely focuses on other companies and how they are differentiating themselves in the market. It offers a description of the service and how it works, but since it is still very new to the market and not yet researched, there is no evidence on whether the service itself profitable or even has a large enough market. The only mention of financial results regards a competitor of GM and the only statement is that analysists believe the model is unprofitable as of now. A large weakness in this article is the fact that it focuses on many other companies and that the services are extremely new and have no research to help answer whether this strategy effectively