Business

Target is adding Starbucks drinks and food to curbside pickup at stores across the country.
The big-box retailer wants to jolt sales as shoppers spend more on experiences and buy fewer discretionary items.
The company will report quarterly earnings next week.

A worker delivers an order to a drive-up customer at a Target store in Miami, Florida, Aug. 19, 2020.
Joe Raedle | Getty Images

Target is looking to jolt sales by adding Starbucks drinks and food to its curbside pickup service at stores across the country.
The big-box retailer on Wednesday said it will expand that offer to its more than 1,700 stores that have Starbucks cafes and Drive Up, its curbside pickup service. That’s the vast majority of its nearly 2,000 locations. The company said it will begin the chain-wide rollout this summer and will have the new feature across stores by October.

Target has experimented with ways to sweeten the shopping experience and deepen customer loyalty, especially as consumers buy fewer discretionary items and prioritize spending on experiences such as concerts and dining out. Among its strategies, the discounter has opened more mini Ulta Beauty shops, debuted curbside returns and invested in speedier shipping.
Target has a licensing agreement with Starbucks. Baristas at its stores are employed by Target.
The retailer began testing the Starbucks curbside pickup service at some stores in the fall. The feature allows shoppers to tack on a coffee drink or another Starbucks menu item when picking up groceries, a birthday present or any other curbside pickup order they made online.
Target said it proved popular. The Iced brown sugar oat milk shaken espresso, birthday cake pop and iced caramel macchiato topped the list of most commonly ordered items.
Target’s curbside pickup service, Drive Up, helped fuel the company’s e-commerce and sales growth during the Covid-19 pandemic. The company’s annual revenue shot up about $31 billion, or nearly 40%, from the fiscal year that ended in January 2020 to the fiscal year that ended January 2023.

The company declined to say how much Starbucks lifted sales and visits at the nearly 250 stores where it tested, citing the quiet period before it reports earnings.
Yet, according to Target, curbside pickup has led to more business. Customers who try Drive Up for the first time end up spending 20% to 30% more at Target than they did previously, the company said. That explains why Target has added other features and more items to curbside pickup, including beer and wine.
But Target has had a rocky stretch over the past year. It missed Wall Street’s earnings expectations three out of four quarters in the most recent fiscal year as it coped with a glut of unsold inventory and higher-than-expected markdowns.
Target will report its fiscal second-quarter earnings next Wednesday. The company said in May that it anticipates slower sales to continue, even as its profit margins improve.
It predicted comparable sales will range from a low-single-digit decline to a low-single-digit increase for the fiscal year. Target said its full-year earnings per share will range between $7.75 and $8.75. 
Shares of Target are down about 12% this year, lagging the approximately 17% gain of the S&P 500 during the same period. The company’s stock closed Tuesday at $130.98, down about 1%.
For its part, Starbucks has been diversifying its store formats in recent years as customers spend less time lingering inside its cafes and more time ordering from their phones or in drive-thru lanes. The coffee giant has opened cafes reserved for mobile orders, with walk-up windows, and inside Amazon Go locations.
The cafe locations inside grocery and Target stores drive sales for Starbucks, and incremental traffic for those retailers, even as their customers pulled back on visits and spending, Starbucks’ then-CEO Howard Schultz said in February.
— CNBC’s Amelia Lucas contributed this report. More

Penn Entertainment is partnering with Disney’s ESPN to rebrand and relaunch its sportsbook as ESPN Bet.
The move comes as ESPN has been exploring further moves in the sports-betting space in recent years.
Penn is rebranding the Barstool Sportsbook as ESPN Bet, and will be divesting its stock in Barstool Sports.

SportsCenter at ESPN Headquarters.
The Washington Post | The Washington Post | Getty Images

Disney’s ESPN is launching a betting sportsbook, putting the sports entertainment unit deeper into the wagering world.
U.S. gambling company Penn Entertainment said it is partnering with ESPN to rebrand and relaunch its sportsbook as ESPN Bet. It’s the first time ESPN’s brand will be on a sports-betting platform.

ESPN Bet will take over Penn’s Barstool Sportsbook and become ESPN’s exclusive operation. It will launch this fall in the 16 legalized betting states.
ESPN had been looking for a partner in the sports-betting business for sometime. Last fall, former Disney CEO Bob Chapek said that while ESPN will never take bets itself, it wanted to partner with a gambling company.
The deal gives ESPN another revenue stream as cord-cutting weighs on the traditional TV business. Meanwhile, the deal allows Disney to shore up cash as it loses money on its streaming unit and is likely to acquire Comcast’s stake in Hulu early next year.
Disney CEO Bob Iger also recently signaled on CNBC that the company is looking for a strategic partner and is open to offloading its cable TV networks.
The deal, announced Tuesday, gives Penn the exclusive right to the ESPN Bet trademark in the U.S. for 10 years, which may be extended another 10 years if the two come to a mutual agreement.

As part of the deal, Penn will pay ESPN $1.5 billion in cash over the 10-year period. The agreement also grants ESPN about $500 million of warrants to buy approximately 31.8 million Penn common shares that will vest over the same period.
ESPN will also have the option to designate one nonvoting board observer to Penn’s board, or after three years, designate a board member subject to certain regulatory approvals and a minimum ownership threshold.
Penn will be divesting its stock in Barstool Sports to founder David Portnoy. Penn became sole owner of Barstool in February when the company completed its acquisition of Barstool for $388 million.
Through the latest agreement, Penn will have the right to 50% of the gross proceeds that Portnoy receives in any future sale or other monetization of Barstool.
Penn’s stock was up roughly 20% in after-hours trading Tuesday, while Disney was slightly up. Disney and Penn both report earnings on Wednesday.
Penn said in Tuesday’s release the deal will add an estimated $500 million to $1 billion in annual long-term adjusted earnings potential in its interactive segment.
In February, Penn reported that its sports-betting business turned a profit in the final three months of the fiscal year, the first U.S. sports gambling company to do so during that period. Typically it’s harder for a sportsbook to post a profit during the third and fourth quarters because companies spend more on marketing and promotions during the football season.
At the time, Penn had attributed the profitability to its marketing approach and relying on cross-platform promotion from Barstool.
— CNBC’s Alex Sherman contributed to this report.
Correction: Penn Entertainment reported in February that its sports-betting business turned a profit in the final three months of the fiscal year. An earlier version misstated the month. More

Rocket Lab reported quarterly results on Tuesday that largely met Wall Street’s expectations.
“The second quarter saw strong performance across Rocket Lab’s launch and space systems businesses,” Rocket Lab founder and CEO Peter Beck said in a statement.
The company also added contracts for 10 more Electron rocket launches in the year ahead.

Rocket Lab

Rocket Lab on Tuesday reported second-quarter results that largely met Wall Street’s expectations, and the company said it added contracts for 10 more launches in 2023 and 2024.
“The second quarter saw strong performance across Rocket Lab’s launch and space systems businesses with three successful Electron [rocket] launches, more than 17 spacecraft featuring Rocket Lab satellite components deployed to orbit, and multiple new launch contracts signed with new and returning customers,” Rocket Lab founder and CEO Peter Beck said in a statement.

The company reported a net loss of $45.9 million, or 10 cents per share, compared with a loss of 9 cents a share expected, according to analysts surveyed by Refinitiv. That was wider than the loss of 8 cents a share in the same quarter a year earlier.
Revenue grew 12% year over year in the second quarter to $62 million, versus $61.8 million expected by analysts surveyed by Refinitiv.
Rocket Lab’s launch business saw $22.5 million in revenue in the second quarter, while its space systems unit brought in $39.6 million. Its contract backlog increased from the previous quarter, rising by $40.1 million to $534.3 million.
On the company’s call with investors, Rocket Lab CFO Adam Spice said the space systems business had “a bit of a timing issue with … [recognizing] revenue over certain programs on the satellite manufacturer side.”
“We expect to make up a lot of that ground in the fourth quarter,” Spice said.

Rocket Lab stock rose about 3% in after-hours trading from its close at $6.66 a share. The stock is the top performing pure-play space stock in 2023, up 77% year-to-date.
For the third quarter, Rocket Lab expects revenue to grow to between $73 million and $77 million.

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The company said it passed “significant milestones” in the development of its coming Neutron rocket. Those developments included completing a second stage tank for the rocket, as well as finishing construction of a stand to conduct cryogenic tank tests – key for verifying the rocket’s design ahead of a first launch. Rocket Lab also expects to begin construction of Neutron’s launch site in Virginia in the third quarter.
Beck told CNBC after the report that recent changes to Neutron’s design came partially from customers pushing to use more of the rocket’s capability on each launch.
“We’ve seen customers push for fewer and fewer launches, even if the economics are the same, and do downrange landings and use the full ‘throw’ of the vehicle,” Beck said. “The fastest route to getting the vehicle fully commercial is in fact to land it downrange on a barge.”
A key part of Rocket Lab’s progress toward the first Neutron launch is the development of its Archimedes line of rocket engines. Beck told CNBC that Archimedes features “new manufacturing technologies” that Rocket Lab “hasn’t really disclosed in any great detail.” They “enable a much lower cost per engine” and “are coming along nicely,” he said.
“We’ll be pulling it all together here for the end of the year for a big engine test,” Beck said.

Rocket Lab

Rocket Lab added orders for 10 launches of its Electron rocket since the end of the first quarter. Commercial satellite companies BlackSky and Synspective booked five and two Electron launches, respectively, while “a government customer” purchased two launches and “a confidential customer” ordered a “HASTE” mission. The launches are largely expected to happen in 2024.
HASTE is a modified Electron rocket that flies hypersonic test missions, rather than carry satellites to orbit. The company launched its inaugural HASTE mission in June, flying for its customer Dynetics’ Leidos under a contract from the Pentagon.
Rocket Lab has “multiple relationships with multiple customers” for HASTE missions, Beck said, but the classified nature of the launches makes it “difficult to give too much insight.” He added that “we see a healthy pipeline of these kinds of missions.”
“We have a longstanding relationship with some of these customers. They know who we are, they know the quality of the work they get from us,” Beck said, adding that “the U.S. has lagged thoroughly behind in hypersonics for a long time and this capability is incredibly affordable.” More

UAW President Shawn Fain heavily criticized early -bargaining proposals from Stellantis before throwing the packet of papers into a trash can.
He defended lofty demands for its members working for the Detroit automakers, including significant pay increases.
The current national agreements between the UAW and GM, Ford and Stellantis expire Sept. 14.

During a Facebook Live on Aug. 8, 2023, UAW President Shawn Fain
Screenshot

The leader of the United Auto Workers on Tuesday adamantly defended lofty demands for the union’s members who work for the Detroit automakers, while calling recent contract proposals from Stellantis “trash.”
UAW President Shawn Fain during a Facebook Live webcast heavily criticized early-bargaining proposals from the Chrysler and Jeep parent company before throwing the packet of papers into a garbage can.

Fain laid out reported changes to the contract involving holiday and vacation days, absenteeism, 401(k) contributions, profit-sharing payments and other proposals that he described as “concessionary.”
“Stellantis’ proposals are a slap in the face. They’re an insult to our members’ hard work over the last four years,” Fain said. “Rather than honoring the sacrifice made by the employees [during the Covid pandemic], management’s chosen to spit in our faces.”
Stellantis did not immediately respond for comment.
The theatrics are the latest and most elaborate by the union leader since negotiations began in earnest last month with Stellantis, Ford Motor and General Motors.
They come a week after the UAW publicly said it wants double-digit pay raises and defined-benefit pensions for all workers, citing 40% pay raises on average over the last four years for the CEOs of the companies.

Fain on Tuesday called proposed pay increases “well deserved.” The union last week said it presented its  economic demands that included “big wage increases,” more paid time off and reestablishing retiree medical benefits as well as cost-of-living-adjustments.
The current contracts between the UAW and Detroit automakers expire on Sept. 14.
Contract talks between the union and automakers usually begin in earnest in July ahead of mid-September expirations of the previous four-year agreements. Typically, one of the three automakers is the lead, or target, company that the union selects to negotiate with first and the others extend their deadlines. However, Fain has said this year may be different, without going into specific details.
Fain reiterated Tuesday that Sept.14 “is a deadline, it’s not a reference point.”
“To the Big Three, the clock is ticking. It’s time to get down to business,” Fain said during the Facebook event.
Fain also criticized Stellantis CEO Carlos Tavares for not meeting with union leaders to open the negotiations. Tavares, who is based in Europe, has publicly said that he did not plan to be involved in the day to day of the bargaining, instead relying on his regional leaders. More

EV maker Rivian Automotive reported a loss for the second quarter that was narrower than expected.
Rivian now expects to build about 52,000 vehicles in 2023, more than twice the number it made in 2022.
The EV maker had $10.2 billion in cash remaining as of June 30.

Production of electric Rivian R1T pickup trucks on April 11, 2022 at the company’s plant in Normal, Ill.
Michael Wayland / CNBC

Electric vehicle maker Rivian Automotive on Tuesday reported a loss for the second quarter that was narrower than expected and raised its production guidance for the full year.
It now expects to build about 52,000 vehicles in 2023, more than twice the number it made in 2022 and up from its previous production guidance of 50,000 vehicles.

Rivian delivered 12,640 vehicles during the second quarter, up 59% from its first-quarter total and well above the 4,467 EVs it delivered in the second quarter of 2022. It produced 13,992 vehicles in the quarter, up from 9,395 in the first quarter of 2023 and 4,401 in the second quarter of 2022.
Here are the key numbers from Rivian’s report, with consensus analyst estimates as reported by Refinitiv:

Adjusted loss per share: $1.08 vs. $1.41 expected.
Revenue: $1.12 billion vs. $1 billion expected.

Rivian’s net loss for the quarter was $1.2 billion, or $1.27 per share. A year ago, Rivian reported a net loss of $1.71 billion, or $1.89 per share. On an adjusted basis, Rivian reported a loss of $1.02 billion, or $1.08 per share.
Revenue in the second quarter rose to $1.12 billion from $364 million in the same period in 2022. Rivian’s second-quarter revenue included $34 million from the sale of regulatory credits.
“Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability,” CEO RJ Scaringe said in a statement to CNBC. “We have achieved meaningful reductions in both R1 and EDV vehicle unit cost across the key components, including material costs, overhead and logistics. It was a strong quarter, and we remain focused on ramping production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.”

Rivian’s gross loss, or negative gross profit, was $412 million in the quarter, down from $704 million a year ago and a roughly $35,000 per vehicle improvement from the first quarter of 2023. Increased production, with the related economies of scale, and “our continued efforts to drive material cost reductions through commercial negotiations and engineering design change” drove the improvement, it said.
Rivian reiterated that it expects to reach a positive gross profit sometime in 2024.
The EV maker had $10.2 billion in cash remaining as of June 30, down from $11.78 billion as of March 31. It also had about $1.1 billion in credit lines available as of quarter end, for total liquidity of $11.3 billion. Capital expenditures in the second quarter were $255 million, versus $359 million in the same period last year.
For the full year, Rivian now expects about $1.7 billion in capex, down from $2 billion in its prior guidance.
Rivian took a number of steps earlier this year to slow spending and bolster its balance sheet, including a 6% staff reduction in February and a $1.3 billion sale of convertible notes in March. The company also delayed the launch of its upcoming smaller R2 vehicle platform to 2026, from 2025.
Rivian produced roughly 23,400 vehicles in the first half of 2023. The company is currently building the R1T pickup, the R1S SUV and a series of electric delivery vans for Amazon at its factory in Normal, Illinois. More

Activist investment firm Barington Capital Group is calling on Hanesbrands to reduce its costs, generate cash and perhaps select a new CEO as it grapples with a shrinking market cap.
Hanesbrands, which is known for its line of basic T-shirts, underwear and bras, defended its strategy but said it is “open-minded” about changes.
Shares of Hanesbrands have fallen about 17% year to date.

A customer at a Target store in Chicago, Illinois shops for Hanes underwear
Tannen Maury | Bloomberg | Getty Images

Activist investment firm Barington Capital Group is pressuring Hanesbrands to reduce its costs, generate cash and perhaps pick a new CEO as the apparel maker’s market cap shrinks, the firm announced Tuesday.
In a Monday letter to Hanesbrands Chairman Ronald Nelson, Barington’s CEO, James Mitarotonda, outlined the issues facing the company and called for a series of changes.

“We believe that Hanesbrands currently sits at a critical juncture and must immediately focus on cash generation and debt reduction in order to create long-term value for shareholders,” he wrote. 
“We believe that management’s largely ineffective response to recent market challenges is responsible for the Company’s rapidly deteriorating results,” Mitarotonda added. “Further, Hanesbrands’ excessive debt burden appears to amplify the impact of poor operating performance on Hanesbrands’ ability to create value for shareholders.”
Hanesbrands, which is known for its line of basic T-shirts, bras and underwear, has seen its stock plummet about 17% this year. It has grappled with soft sales and plunging profits as wholesalers pull back on ordering.
The company’s shares closed 5% higher on Tuesday.
Barington wants to see Hanesbrands reduce selling, general and administrative expenses by at least $300 million per year and use the savings to pay down debt. It also wants the company to improve its inventory practices.

Further, Barington believes Hanesbrands needs new board members with “more relevant skills and experience,” and perhaps a new CEO, to turn its business around, the letter said. 
“We believe that the right board and management team and an immediate focus on cash generation and debt reduction can position Hanesbrands to become a best-in-class, vertically integrated apparel company and achieve durable profitable growth,” Mitarotonda wrote. 
In response, Hanesbrands, which is due to report earnings on Thursday, said it stands by its current growth plans but is “open-minded with regard to additional paths to improve performance and create value.” 
It also appeared resistant to any changes to its board.
“HanesBrands’ Board actively oversees the development and execution of our strategy, operations and capital allocation decisions, in collaboration with the management team. The Board and management team are deeply experienced in areas relevant to our strategy and portfolio,” the company said in a press release. 
“Further, the Board is committed to ongoing refreshment and having the right mix of expertise and diversity, as demonstrated by the addition of three independent directors to our Board over the last four years,” Hanesbrands said.
It’s not clear how large Barington’s stake in Hanesbrands is, and whether it will try to nominate any board members.  More

The MBA’s monthly index measuring credit availability dropped in July to the lowest level since 2013, indicating that lending standards are tightening even further.
While availability for all loan types dropped, jumbo loan availability decreased the most.

A man enters a Bank of America branch in New York.
Scott Mlyn | CNBC

As if higher mortgage rates weren’t enough, it was harder even to qualify for a mortgage in July than it has been in a decade, according to the Mortgage Bankers Association.
Its monthly index measuring credit availability dropped in July to the lowest level since 2013, indicating that lending standards are tightening even further.

While availability for all loan types dropped, the component of the index for jumbo loans fell the most, as banks face increasing liquidity issues. Jumbo loans cannot be sold to Fannie Mae and Freddie Mac, so they are usually held on bank balance sheets.
Higher mortgage rates have caused demand for home loans to drop. Mortgage applications to purchase a home are 26% lower than they were a year ago, and refinance demand is off 32%, according to the MBA’s most recent weekly survey.
“Declining origination volumes have led to lower profitability for many lenders, resulting in narrower loan product offerings to reduce operational costs,” said Joel Kan, an MBA economist, in a release.
A decline in cash-out refinance programs was a major component of the overall drop in credit availability.
The average rate on the 30-year fixed mortgage is now hovering around 7%, more than double what it was just two years ago when refinancing was booming.
Most borrowers today would rather not have to trade out a 3% rate for a 7% rate just to pull cash out of their homes. They are instead turning to home equity lines of credit, which are second liens. More

General Motors on Wednesday will reveal a new all-electric version of the Cadillac Escalade.
The new model will test the luxury SUV’s prestige for a new era of drivers and the company’s strategy to turn its most lucrative vehicles into money-making EVs.
GM has called the Escalade IQ, which is expected to share little to nothing with the traditional models, the “reinvention of an icon,” rather than a replacement, for now.

2023 Cadillac Escalade V-Series

NEW YORK – General Motors on Wednesday will reveal a new all-electric version of the Cadillac Escalade, testing the luxury SUV’s prestige for a new era of drivers and the company’s strategy to turn its most lucrative vehicles into money-making EVs.
GM CEO Mary Barra and other executives have promised Wall Street that the automaker’s new EVs will be profitable, targeting EV profits comparable to gas-powered models by mid-decade and annual EV revenue of $90 billion by 2030.

But slower-than-expected electric vehicle launches, inflated raw material costs and emerging concerns about consumer acceptance have some doubting the automaker’s ability to achieve the scale it needs to deliver on such targets.
The all-electric Escalade “IQ” will be an important proof point for reassuring investors.
The Escalade IQ is the first – and most important – traditional Cadillac model to be released as an EV. It’s set to eventually replace the current gas- and diesel-powered vehicles, unlike Cadillac’s Lyriq and Celestiq EVs that represented new entries for the brand.
“The Escalade is one of the lynchpin or capstone vehicles for GM. It is the sweet spot of their image and profitability,” said Tyson Jominy, J.D. Power vice president of data and analytics. “It certainly defines the Cadillac brand. Beyond that, it’s an extraordinarily profitable brand itself for General Motors.”

Cadillac plans to exclusively sell all-electric vehicles by 2030, making it GM’s luxury EV brand. Investors will be watching for how, or whether, the automaker can also transfer the Escalade’s lofty profit margins – estimated at upward of 30% – to the EV models.

Cadillac Vice President John Roth declined to discuss Escalade profit margins but said the vehicle “certainly carries its fair share of weight” for the brand. Current models start from about $81,000 to $150,000 for a limited-edition performance variant.
The EV version is expected to be priced toward the upper end of that range. GM declined to comment on pricing ahead of the vehicle’s reveal Wednesday in New York City.
“When you make your franchise player an EV, you send a statement to the world that in no uncertain terms, Cadillac is going all-electric,” Roth, who started his current position in June, told CNBC.

‘Reinvention of an icon’

The Escalade SUVs, including a larger “ESV” model, are among the most expensive vehicles bought by U.S. consumers.
Auto insights firm Edmunds reports the average transaction price for an Escalade was $115,500 through the first half of this year. That places it below the industry-leading Mercedes-Benz G-Class SUV at more than $202,000, but above nearly 300 other vehicles, excluding exotics such as Ferrari and Lamborghini.
Sales of Escalades have grown in importance to the brand, representing upward of 30% of Cadillac’s U.S. sales in recent years. GM says it has sold more than 1 million Escalades globally since the vehicle was introduced in 1998, a vast majority of which have been sold in the U.S.
“The introduction of Escalade gave Cadillac a flagship. Realistically, over the years, Escalade has become an icon,” Michael Simcoe, GM’s global design chief, told CNBC. “It’s earned and deserves its position as a true luxury vehicle and the top of the Cadillac range now.”

GM Chair and CEO Mary Barra addresses investors Oct. 6, 2021 at the GM Tech Center in Warren, Michigan.
Photo by Steve Fecht for General Motors

GM has called the Escalade IQ, which is expected to share little to nothing with the traditional models, the “reinvention of an icon,” rather than a replacement, for now.
The automaker plans to initially sell the new electric Escalade IQ alongside the current traditional models.
Rory Harvey, who previously led Cadillac before becoming head of GM North America in June, described the strategy as “a stunning proposition in terms of having the two variants” that will allow the company to better juggle production with demand.
The electric Escalade will be produced at a factory in Detroit alongside EV versions of the GMC Hummer, Chevrolet Silverado and Cruise Origin shuttle. The vehicles all share GM’s new “Ultium” vehicle platform, batteries, motors and other components.
The traditional Escalade will continue to be produced at GM’s Arlington Assembly in Texas along with full-size SUVs from Chevrolet and GMC that share a vehicle platform and other components with the Escalade.

A close-up of the illuminated front end of the electric Cadillac Escalade IQ, including a black crystal shield badge.

A teaser video released by GM of the Escalade IQ appears to have more design elements similar to the automaker’s Cadillac Lyriq and Cadillac Celestiq than the traditional Escalade. The vehicle features an illuminated grille, vertical headlights and a potentially smoother exterior.
Simcoe, who has been with GM for roughly 40 years, said the goal of the IQ was to build upon the Escalade’s reputation without encroaching on the current models with internal combustion engines (ICE).
“The intention is to not take anything away from the ICE Escalade … and that’s one of the challenges. How do you do a vehicle as good as that and then up your game,” he told CNBC.

Status symbol

But the Escalade carries more significance to GM than just profits.
The vehicle has grown into a status symbol, highlighted in hundreds of songs, TV shows and movies for the rich, stylish and powerful.
Such appearances assisted the early adoption of the vehicle, according to Wayne Cherry, a former GM design chief who oversaw the first-generation Escalade. That led GM to increasingly differentiate the Escalade from its GMC and Chevrolet sibling SUVs despite largely sharing the same mechanical components.

The first-generation Cadillac Escalade was produced from 1998 through 2000 by General Motors.

“I think the design evolution has been excellent. It continues to look distinctive and recognizable and has evolved extremely well with the advances in technology,” Cherry said in an email.
GM regularly uses the Escalade to debut new technologies and design characteristics that then trickle down to the rest of the Cadillac brand or other vehicles in GM’s lineup.
Ivan Drury, senior manager of insights at Edmunds, believes the Escalade IQ could continue such trends for a new generation of Cadillac buyers, without the gas-guzzling stigma.
“The vehicle exudes excess. It’s meant to say, ‘I don’t care about the following things including being eco-conscious or -friendly,'” Drury said. “But the thing about IQ is you could potentially get all of those new eyeballs … It’s something that really does bring new blood to the brand.” More