An EV Flagship, FTC Drops A Big Fine on a Dealer Group, 1B Hospitality

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Welcome to Wednesday as we talk about Cadillac’s return to the ultralux state. We also cover a major fine levied by the FTC on a Maryland Auto Group, as well as a $1B investment in hospitality for an upcoming F1 event in Vegas. 

• In a long awaited reveal on Monday, Cadillac unveiled their new flagship EV, the MSRP will be north of $300k ultra-luxury Celestiq which will begin production in late 2023
  • 600 hp , 640 ft/lb of torque, and 300 mi of range
  • “Celestiq is the purest expression of Cadillac, acknowledging our incredible history and driving us to a bolder and brighter future,” said Cadillac global vice president Rory Harvey in a press release. “It is a completely bespoke work of automotive art, built around the most advanced and innovative technology that we have ever engineered into an automobile.”
  • Hand built with no more than 6 being made at a time
  • Concierge design process where approved Dealers advise buyers as they and designers work together to craft a unique vehicle where “Each client will experience a personalized journey to make their vehicle exactly the way they desire.”
  • Features include standard rear-wheel steering and all-wheel drive, multi zone auto dimming sunroof and a 55” wide hi res display spanning the entirety of the dash
  • Tili: Is this an EV dev or a brand flex? Yes. 
• Passport Automotive Group which holds brands, BMW, Infiniti, Mini, Nissan, Mazda, and Toyota has been fined $3.38 M by the FTC in a discrimination suit involving charging illegal fees and engaging in lending discrimination
  • From AN “FTC alleged Passport advertised certified, reconditioned or inspected cars at specific prices but added extra certification, reconditioning or inspection fees it falsely claimed consumers were required to pay. For example, the FTC cited one case in which a vehicle advertised for $24,050 sold for $26,440 because of illegal add-on fees. “
  • “...also alleged Passport charged Black and Latino consumers about $291 and $235 more, respectively, in interest than white consumers
  • The fine will be paid by a combination of the group, as well as its president Everett Hellmuth and vice president Jay Klein
• Passport says it disagrees with the allegations in the strongest possible terms but noted that fighting the ruling "...ultimately would have distracted us from the important work we do. "That time, energy and money can be better utilized by continuing to invest in our communities," the dealership group said. "For that reason, we agreed to the settlement announced today."
• This is the second run in w the FTC for Passport. In 2018 they sent out 20k+ fake “Urgent recall” notices to drive dealership visits.
• The stratospheric growth of F1 in america is prompting a

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