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    Cadillac's Marketing Chief Admits the ELR Price Was A Bit Too Much


    • Uwe Ellinghaus Admits the ELR was priced too high

    You don't hear a lot of executives admit when they or their company has made a blunder. When they do, it comes as a bit of a shock and helps you realize they are somewhat human. Case in point is Cadillac's marketing chief Uwe Ellinghaus telling Bloomberg they bit off bit a more than they could chew with the ELR pricing.

     

    "The MSRP was, indeed, a mouthful. We overestimated that customers would realize our competitors were naked at that price," said Ellinghaus.

     

    So why did Cadillac price the ELR so high? Well product planners believed if the ELR was close to the price of the Chevrolet Volt, people would go for the Volt. Also, the high price was seen as to signal this was a special car from Cadillac.

     

    "We just wanted to make this a statement for the brand of how progressive we are," said Ellinghaus.

     

    Sadly it hasn't worked with just 1,835 ELRs being sold in North America within the past 18 months. Also, dealers have been piling on incentives to get them off their lot.

     

    Source: Bloomberg

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    "The MSRP was, indeed, a mouthful." 

     

    Um, I think potential buyers were more concerned with another bodily orifice when they saw the $75,000.00 price tag.

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    Also, dealers have been piling on incentives to get them off their lot.

     

     

    Seems we've heard & heard this before....

     

     

    Cort :) www.oldcarsstronghearts.com

    1979 & 1989 Caprice Classics | pigValve, paceMaker, cowValve
    "Promises mean everything" __ Everclear __ 'Wonderful'
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    Call up all the GM, Cadillac, and EV haters because we gotta 'nother live one. Some people love to hear this kinda thing. Its actually a bit weird.

     

    ELR at $75K was fine IF Cadillac only wanted to sell them to niche buyers. They didn't. They FAILED to sell the intended 3000 (last year about 1/2 of that)  units annually because they did nothing to market this car after "Poolside" went viral and let's be honest, its a 2-seater (eff the back seat in any of these sports coupes/Verts from Cadillac to Benz), it has no sunroof, which is insane considering the market for this car would seemingly be the well-to-do, Silicon Valley, greenie types who love to show up in something sexy that lets their hair blow around in the wind. 

     
    This car.. THIS CAR.. should have been a sub-ATS sports car, with a convertible roof or sunroof having coupe, with a TT 2.0L 270HP and 350HP VSeries version, and ta hell with EV. The Voltec should have gone in the XTS. The XTS, with Voltec would have made sense. The XTS with Voltec would have added numbers in the realm of what Tesla sell because it would be in a car that could actually seat 5, maybe 6, with a trunk that could house a bunch of Golf Clubs.
     
    Anyway, the CT6 Hybrid rights this wrong. The ELR, will return in a proper form, and a different name. I'm thinking CT7. The CT6, with 335 hp and 432 lb-ft of torque, not to mention light weight will be pretty refreshing   

    And another thing I wish people would stop always bringing up the Tesla Model S. The comparison of the Tesla Model S to the Cadillac ELR was a dumb one created by idiots in the first place simply because of price and they both being EVs. 

     
    Tesla Model S is a 7-Seater. ELR is a 4 Seater. 
    Tesla Model S is a sedan. ELR is a Coupe
    Tesla Model S is a Full-Sizer. ELR is a Compact
    Tesla Model S is a 100% EV. ELR is a Plug-in Hybrid
     
     
    Lets start comparing Pick-ups to Dirt-Bikes.
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    To top it off, the Model S may sell in steadily, slightly increasing volume, but it still doesn't make the company one thin dime. They have to keep it going because it's the ONLY vehicle they have. Cadillac/GM, of course, have the room to speak on the ELR because it's one of a hundred vehicles built.

     

    Still, these guys don't understand marketing. It's one thing to (appear) candid in an interview, it's another to openly admit 'mistakes'. It gains you nothing.

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    No kidding Sherlock, where was the voice of reason when that came to that insane price to begin with.  They missed the opportunity to price it between $55k and $60k.  Cadillac needs to take a page from Lexus of the past and price their cars at a reasonable low price as not to be perceived as low rent.  Then work their way up and people would have been more tolerate of the pricing environment.  I love Gm and  Cadillac but there is a perception problem they have to work around and doing business as usual is not going to make it go away.

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    This car should have been $49,995 base price, but come fully loaded with no options.  It's a Volt, asking $50k is even stretching.

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    Perhaps there are some brains at GM, afterall. It was obvious from the beginning that the price was completely unjustified. The funny thing is... A lot of you guys tried to justify it in the beginning. Watching the backpedaling and further attempts of justification is about as good as any C&G movie gets. 

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    This car should have been $49,995 base price, but come fully loaded with no options.  It's a Volt, asking $50k is even stretching.

     

     

    Agreed. It does not offer much more either.

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    55-60 MSRP would have been fine. The interior is gorgeous as is the exterior. Based on style alone, it would have sold alright out of the box marketed that way.

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    The ELR interior should have been in the ATS.   Would have made the ATS more competitive.  The ELR wouldn't have sold at anything over $50k, the Volt is a slow seller, a luxury Volt was always going to be an even slower seller.

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    Perhaps there are some brains at GM, afterall. It was obvious from the beginning that the price was completely unjustified. The funny thing is... A lot of you guys tried to justify it in the beginning. Watching the backpedaling and further attempts of justification is about as good as any C&G movie gets. 

     

     

     

    Please. The technology is sound,.. the packaging was the issue. What exactly justifies the price of any luxury car over a competent mainstream competitor??? Can U really tell me why a 328i is justified in costing $20K more than a Camry???  

     

    I would have sold the ELR for $75K.. I just would have made the ELR a different, more substantial car for the main reason why going green makes since.. in all segments.. to be environmentally friendly. The configuration is wrong. Tesla had another model that was a failure because since when is a two seater environmentally friendly??? Must carry up to 4 Comfortably whether it be a Model S, ELR, or Chevy Tahoe. Yup.. Chevy Tahoe. Fill one up with people and it could be as fuel efficient as a Prius

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    The ELR interior should have been in the ATS.   Would have made the ATS more competitive.  The ELR wouldn't have sold at anything over $50k, the Volt is a slow seller, a luxury Volt was always going to be an even slower seller.

     

     

    No it shouldn't have been The ELR has an interior that features materials that make the S-Class seem overpriced. The ATS interior is not the reason for its sales issues. This price point now presented will go a nice way to getting more sales for the ELR. 

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    The S-class isn't overpriced, if it were then people would stop buying it.  But it has been the global sales leader for about 40 years, people must think it is a good buy.  Unlike the ELR that will spend about 4 years on market with no sales and be killed off.

     

    The ATS interior doesn't drive away sales, but I don't think it is bringing people in either.  The ATS is a poor seller, it needs something that is a wow factor to bring in more buyers.

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    We've been over this : if the S-class weren't overpriced, it wouldn't need heavy incentives.

    Last gen was sometimes hitting $15 grand off sticker.

     

    ATS physically doesn't need anything glaring or major, it's not the product that's deficient.

    There's also no wow factor from the germans in this segment.

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    In most months the S-class outsells its closest 3 competitors COMBINED and at a higher transaction price.  It creates $1 billion a year in profit for Daimler, there are no problems in the cash making department with the S-class.

     

    There is a new A4 coming next year, along with the mild refresh the 3-series, and the Jag XE is coming.  Competition is only increasing.  The ATS doesn't sell now, and they have another 3-4 years in this life cycle.  Dressing up the interior an extra level would help.  I don't see a downside to taking much of the design and materials for the ELR interior and putting it into the ATS which is a similar sized car.

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    ATS= fix Cue, fix pricing and packages, new dash but most importantly, give the car some leg room in the back.  The ATS-L body should become the ATS sedan.  American lux car intenders have always wanted some room in their car and the ATS doesn't have enough and it would improve sales if it did.

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    In most months the S-class outsells its closest 3 competitors COMBINED and at a higher transaction price.  It creates $1 billion a year in profit for Daimler, there are no problems in the cash making department with the S-class.

     

    There is a new A4 coming next year, along with the mild refresh the 3-series, and the Jag XE is coming.  Competition is only increasing.  The ATS doesn't sell now, and they have another 3-4 years in this life cycle.  Dressing up the interior an extra level would help.  I don't see a downside to taking much of the design and materials for the ELR interior and putting it into the ATS which is a similar sized car.

     

     

     

    U really are delusional. Your argument of sales is ridiculous.. as the Camry outsells several cars in its segment 3:1. The fact that with its numbers.. it generates $1 Billion in profit.. proves my original, and Balthazar's supporting assertion about it being overpriced. That is.. essentially how U make profit. Only a fool would pay full price for an S-Class... when U can get one for about $30K off a year later. I can find U a '13 S550 with 23K miles for under $60K. That's a fact

    Edited by Cmicasa the Great
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    ATS= fix Cue, fix pricing and packages, new dash but most importantly, give the car some leg room in the back.  The ATS-L body should become the ATS sedan.  American lux car intenders have always wanted some room in their car and the ATS doesn't have enough and it would improve sales if it did.

     

     

     

    I agree about the legroom. Not because I would ever have anymore than 2 people in my sport sedan or hate the idea of chauffeuring anyone... but because apparently more and more people are buying small compact luxury sedans and trying to squeeze their lazy ass friends in the rear to be chauffeured, when they could have just bought a larger CTS..

    Edited by Cmicasa the Great
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    In most months the S-class outsells its closest 3 competitors COMBINED and at a higher transaction price.  It creates $1 billion a year in profit for Daimler, there are no problems in the cash making department with the S-class.

     

    There is a new A4 coming next year, along with the mild refresh the 3-series, and the Jag XE is coming.  Competition is only increasing.  The ATS doesn't sell now, and they have another 3-4 years in this life cycle.  Dressing up the interior an extra level would help.  I don't see a downside to taking much of the design and materials for the ELR interior and putting it into the ATS which is a similar sized car.

     

     

     

    U really are delusional. Your argument of sales is ridiculous.. as the Camry outsells several cars in its segment 3:1. The fact that with its numbers.. it generates $1 Billion in profit.. proves my original, and Balthazar's supporting assertion about it being overpriced. That is.. essentially how U make profit. Only a fool would pay full price for an S-Class... when U can get one for about $30K off a year later. I can find U a '13 S550 with 23K miles for under $60K. That's a fact

     

    But the Camry doesn't outsell the Accord, Altima and Fusion combined, and cost 20% more than those 3.  If buyers thought the S-class was over priced or a rip off then it wouldn't sell.  S-class has over 40 years on top of the mountain, no one has knocked it off yet.   They have sold about 3 million S-classes since 1972 when they actually started using the S-class name.  There must have been a lot of fools walking into Mercedes dealerships since then.

     

    I am sure the bean counters at GM would have loved if the ELR sold 1,000 units a month at their $75,000 price tag so they turned a profit.   Rather than having almost no sales and having to kill the product off as another one and done.

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    Jag XE is competition for nobody; no one buys Jags in this country.  

    True, hardly anyone buys a Jag, but they'll sell like 1,000 a month, they will have to steal that off someone.  People bought the X-type and it was terrible.  I don't think it is a big threat either, but it might take 200 cars a month away from Cadillac, BMW, Lexus and Mercedes. 

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    They barely sell 1000 /mnth now with multiple models. XE isn't going to reach anywhere near 1000/mn- there's just no "wow factor" and no one is clamoring for any more Jags. Niche brand, not competition.

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      The leather used for the seats feel quite supple and help fix the issue of uncomfortable seats in the SRX. Interior space has grown, thanks to a two-inch increase in the wheelbase. Rear legroom has grown 3.2 inches and it allows anyone sitting back there to stretch out. Headroom is still slightly tight thanks in part to our tester coming with the optional panoramic sunroof. But this can be alleviated by recalling the rear seat slightly. Cargo space in smack dab in the middle - 30 cubic feet with the rear seats up and 63 cubic feet when folded.
      Cadillac User Interface (CUE) has been one of our least favorite infotainment systems to use since it was introduced a few years ago. The litany of problems ranging from a touch sensitive buttons not responding to inputs to the system crashing have dragged Cadillac down. But the system has been getting a number of changes and updates over the past few years. For starters, Cadillac has removed most of the touch-sensitive buttons from the system. Being able to press an actual button to turn on the heated/ventilated seats or adjust the temperature is really nice. It is a shame Cadillac didn’t bring back an actual volume knob for CUE - the touch-sensitive strip is still there. But at least there are volume controls on the steering wheel that allow you to avoid it. The system itself has been overhauled with a faster processor and a slightly improved interface. The changes make a difference as the system is snappier and a little bit easier to understand. If you still find CUE a bit overwhelming, you’ll be happy to know that CUE now features Apple CarPlay and Android Auto integration.
      Cadillac bucks the trend in the midsize luxury crossover class by only offering one engine - a 3.6L V6 producing 310 horsepower and 271 pound-feet of torque (@ 5,000 rpm). This comes paired with an eight-speed automatic and the choice of front or all-wheel drive. The V6 is the weak link in the XT5. When leaving a stop, it takes a moment for the engine to realize the accelerator pedal has been pressed before it starts working. This is even worse when you’re trying to make a pass as it seems the engine was busy taking a nap before it was hastily woken up. Once the engine is awake, it takes its time to get up to speed. There is a positive to the V6 engine and that is the stop-start system. Unlike some previous systems that are slow to restart the engine or do so in a very rough fashion, Cadillac’s system is quick and smooth when you let off the brake. The eight-speed automatic seems reluctant to downshift at times. We’re guessing this transmission was calibrated for fuel economy. At least the eight-speed automatic delivers smooth shifts.
      Fuel economy figures for the 2017 Cadillac XT5 all-wheel drive stand at 18 City/26 Highway/21 Combined. Our average fuel economy for the week landed around 22.3 mpg in mostly city driving. 
      One characteristic we liked about the SRX was its comfortable ride. Yes, it flies in the face of Cadillac’s message of beating the German’s at their own handling game. But buyers loved the smoothness on offer. Sadly, the XT5 loses a bit of the smoothness. Despite our tester featuring an adaptive suspension system, the XT5 wasn’t able to fully iron out bumps. Some of this can be attributed to 20-inch wheels fitted to our tester. At least the XT5 keeps road and wind noise out of the interior. Like the SRX, the XT5 isn’t sporty. Body motions are kept in check, but the light weight and nonexistent feel from the steering puts a halt to that idea. 
      An item Cadillac has been touting on the XT5 is the Rear Camera Mirror. Available only on the top-line Platinum, the mirror can stream the view from the rear camera by flicking a switch. We found this to be really helpful when backing out of parking lots as it gave a view that isn’t hindered by the thick rear pillars. Hopefully, Cadillac spreads this feature down to other trims of the XT5. 
      In some respects, the 2017 Cadillac XT5 is a step forward. The model improves on certain parts of the SRX such as a more luxurious and spacious interior, improved CUE system, and sharper looks. But in other respects, Cadillac messed up with the XT5. The 3.6L V6 needs to be shown the door and a new engine that offers better low-end performance to take its place. The loss of the smooth ride that the SRX was known for hurts the XT5 as well. Finally, there is the price. Our XT5 Platinum tester came with an as-tested price of $69,985. It is a nice crossover. But if we’re dropping close $70,000 on a luxury crossover, we can think of a few models that would be ahead of the XT5.
      It should be noted that the Cadillac XT5 has taken the place of the SRX of being the brand’s best selling model. At the end of 2016, Cadillac moved 39,485 XT5s. But unlike the SRX which we could recommend without hesitation, the XT5 comes with a number of caveats that we cannot do the same.
      Disclaimer: Cadillac Provided the XT5, Insurance, and One Tank of Gas
      Year: 2017
      Make: Cadillac
      Model: SRX
      Trim: Platinum
      Engine: 3.6L V6 VVT DI
      Driveline: Nine-Speed Automatic, All-Wheel Drive
      Horsepower @ RPM: 310 @ 6,700
      Torque @ RPM: 271 @ 5,000
      Fuel Economy: City/Highway/Combined - 18/26/21
      Curb Weight: N/A
      Location of Manufacture: Spring Hill, TN
      Base Price: $62,500
      As Tested Price: $69,985 (Includes $995.00 Destination Charge)
      Options:
      Driver Assist Package - $2,340.00
      20-inch Wheels - $2,095.00
      Trailering Equipment - $575.00
      Black Ice Body Side Moldings - $355.00
      Compact Spare Tire - $350.00
      Black Ice License Plate Bar - $310.00
      Black Roof Rails - $295.00
      Black Splash Guards - $170.00
    • By William Maley
      Cadillac is going to have a quiet 2017, but 2018 looks to be a blockbuster year as the first of their needed crossovers will launch - the compact XT3. Thanks to a spy photographer, we have gotten our first look at it.
      General Motors' camouflage department did a really good job of covering up the XT3, so we can't really tell much about the design except that it looks like an even smaller XT5. One detail they weren't able to cover up is the intercooler, leading us to believe that the XT3 will come with turbocharged power - most likely the 2.0L turbo. A nine-speed automatic and the choice of front or all-wheel drive is likely. Platform-wise, expect the XT3 to use the underpinnings of the Chevrolet Equinox and GMC Terrain.
      Source: Car and Driver

      View full article
    • By William Maley
      Cadillac is going to have a quiet 2017, but 2018 looks to be a blockbuster year as the first of their needed crossovers will launch - the compact XT3. Thanks to a spy photographer, we have gotten our first look at it.
      General Motors' camouflage department did a really good job of covering up the XT3, so we can't really tell much about the design except that it looks like an even smaller XT5. One detail they weren't able to cover up is the intercooler, leading us to believe that the XT3 will come with turbocharged power - most likely the 2.0L turbo. A nine-speed automatic and the choice of front or all-wheel drive is likely. Platform-wise, expect the XT3 to use the underpinnings of the Chevrolet Equinox and GMC Terrain.
      Source: Car and Driver
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