Jump to content
William Maley

Cadillac News: Cadillac Lays More Money On the Escalade's Hood

Recommended Posts

There's a war going on between Cadillac and Lincoln. With the new Navigator, Lincoln has a very compelling alternative to Cadillac's aging Escalade. But Cadillac is fighting back by dumping a bunch of cash on the hood.

Bloomberg obtained a memo sent to Cadillac dealers that announces a new promotion where current lease customers of 2016 Escalades are being offered a $10,000 discount on a new Escalade. Owners of 2016 Escalades have to make do with a $7,500 discount. The promotion runs until the end of May. GM Spokesman Jim Cain confirmed the promotion to Bloomberg.

This isn't the first time Cadillac has put a huge amount of money onto the hood of the Escalade. Back in November, Cadillac was offering owners of Lincoln models from 1999 to the current model year a $5,000 discount on an Escalade.

Cadillac still holds a significant edge over the Navigator in terms of sales - 8,111 Escalades vs. 4,062 Navigators through March. But Lincoln is gaining ground with Navigators only sitting on dealer lots 10 days on average. 

“GM is trying to keep Escalade buyers out of Navigators, for sure. You’ve got a fresh Navigator and you’ve got an Escalade that is not new and is starting to age,” said Jeff Schuster, an analyst at LMC Automotive.

“This is a particular battle that GM doesn’t want to lose ground in. It speaks to the importance of the Escalade.”

Source: Bloomberg


View full article

Share this post


Link to post
Share on other sites

Yea, time to up the battle with better product. Lets Go Cadillac!

Share this post


Link to post
Share on other sites

$7500 to $10000 on the hood because your greatest competitor puts up a NEW vehicle that directly competes with yours?  That sounds very pre-BK GM.  Only NEW (and better product) can arrest and correct that issue.

  • Upvote 2

Share this post


Link to post
Share on other sites
33 minutes ago, riviera74 said:

$7500 to $10000 on the hood because your greatest competitor puts up a NEW vehicle that directly competes with yours?  That sounds very pre-BK GM.  Only NEW (and better product) can arrest and correct that issue.

Yeah it sounds like something they should have held off for 6 months to see if the Navigator really steals any sales anyway. People still love the Escalade... Even if it is currently the worse of the two complete packages it's still a great overall vehicle. 

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, riviera74 said:

$7500 to $10000 on the hood because your greatest competitor puts up a NEW vehicle that directly competes with yours?  That sounds very pre-BK GM.  Only NEW (and better product) can arrest and correct that issue.

Agreed.  And when the new GLS and new X7 hit the market in the fall or winter they’ll have $10k off Escalades for all.

Share this post


Link to post
Share on other sites
2 hours ago, balthazar said:

$10K is nothing when the Escalade line is bringing in $1B in profit all by itself.

Escalade over the past 4 years has averaged high 30,000s in sales, even with a few export sales, let's call it 40,000 units.  They would have to make $25,000 profit per unit to hit $1 billion.  I know it is made of Silverado parts, but that still seems like a big margin on an $85,000 vehicle.    Pre $10,000 discount, maybe.   

But if the Escalade is responsible for $1 billion in profits, why did GM post a $330M profit for 2017 when factoring out the European sale/loss.  GM posted a $3.88B loss in 2017.   Even on 2015-2016 numbers where GM had a $9B profit, I find it hard to believe that the Escalade is 11% of their profit when it is less than 1% of their global sales volume.

Share this post


Link to post
Share on other sites

You always get it backwards.

Silverado has Escalade parts. 😁

And there's a lot more profit to be had when you look at the average and high-end MSRP Escalades, Cadillac sells some quantity stickering for over $100 grand.

- - - -
GM's 2017 EBIT profit was $12.8B, which matched 2016.
Per-share dividend was $6.62. UAW employees got up to $11K profit-sharing checks. Stock rose 6% on the announcement.

The Company is in very fine health. It's accounting mumbo-jumbo and a one-time $7.3B write down that resulted in a bottom line of a mere $300M profit.

  • Like 1

Share this post


Link to post
Share on other sites
16 hours ago, riviera74 said:

$7500 to $10000 on the hood because your greatest competitor puts up a NEW vehicle that directly competes with yours?  That sounds very pre-BK GM.  Only NEW (and better product) can arrest and correct that issue.

 

It's called panic. Would love to see these two battle it out again.....but a few cool packages might be a better choice at this point though....

Image will be an issue here...

Share this post


Link to post
Share on other sites
17 hours ago, balthazar said:

$10K is nothing when the Escalade line is bringing in $1B in profit all by itself.

It's a huge percentage regardless of how much revenue the car brings in. 

Share this post


Link to post
Share on other sites

The Escalade is a cash cow no doubt, I just don’t see it being 11% of GM’s total profit, though I would guess it has the highest per vehicle margin of any GM product.

I don’t know they never went above the Ecalade, why did they stop?  Cadillac could easily have an SUV In the $125-175,000 range.  Go above the Navigator and make it 2nd rate.

Edited by smk4565

Share this post


Link to post
Share on other sites

As was stated, they go into the low $100Ks already.
Just as the V8TT was predicted and now has been confirmed; even higher up Escalades are in the pipeline.
 

Share this post


Link to post
Share on other sites

I'm sure the next gen of GM full size SUVs can't be too far off...2020-2021?  

Share this post


Link to post
Share on other sites
5 hours ago, balthazar said:

As was stated, they go into the low $100Ks already.
Just as the V8TT was predicted and now has been confirmed; even higher up Escalades are in the pipeline.
 

I don't mean a higher trim Escalade, I mean a vehicle above Escalade.  Something like a Lamborghini Urus competitor with more luxury than an Escalade and more performance than a CT6 V-sport.  And maybe Escala will become a $150,000 base price SUV, I dunno, but I think if Cadillac wants to march upward, then SUV is where you do it.

Share this post


Link to post
Share on other sites

Lambo is projecting worldwide 2018 sales of the Urus to be 1000 units. Is that worthy of building a competitor to? Other than the Cayenne GTS, I don't see any other sporting hi-po SUVs out there at this level.

The next generation Escalade can easily be positioned 25% higher right off the bat... then Cadillac should add performance & packages well above that. 4.2TT has the EXACT same torque output as the Urus, piece of cake to slide one into an Escalade V-Sport.

And Cadillac IS marching upward.

  • Upvote 2

Share this post


Link to post
Share on other sites

They'll top 1,000 Urus's easy, I think Lambo will double their worldwide volume of 3,500 units, Urus will easily be their top selling model.  Ferrari is going to make an SUV too, Bentley has one.

The Escalade needs a $10k price cut to compete with Navigator, but they are going to magically raise the price $20,000 for the new one?    That  is in effect $30k more than the current sale price.  I don't see it happening, they tried to push the CTS up 20% in price and sales collapsed.

 I think a model better than Escalade is needed, leave the Escalade where it is.  But if they want to make a base Escalade $125,000 with a $200,000 V-sport to go against the G-wagen bring it on.  And good for Cadillac if they do it, if you can take a Tahoe and charge and extra $70k then take the money and run.

Share this post


Link to post
Share on other sites

• It would be really sad if the urus becomes the top selling Lambo.

• Navigator is competing with the Escalade, not the other way around. Escalade almost buried the Navigator- Cadillac is not going to lower the price on it, you're dreaming. But yes, I could see... OK not 25% ($18K) but a $10K raise for the next generation, then expand the range upward. And basically that price raise is accomplished by just increasing standard features. Don't need another SUV above it, the next gen Escalade will be the "better Escalade". Isn't it due in like 18 months?

• Of course CTS sales decreased- it moved upmarket. S<E<C, 7<5<3. If BMW increased the price of the 3 to the 5, it's volume would lower also.

• Remember: the Tahoe uses Escalade parts.

Share this post


Link to post
Share on other sites
10 hours ago, balthazar said:

• It would be really sad if the urus becomes the top selling Lambo.

 

• Of course CTS sales decreased- it moved upmarket. S<E<C, 7<5<3. If BMW increased the price of the 3 to the 5, it's volume would lower also.

• Remember: the Tahoe uses Escalade parts.

I bet it will be.. 

Actually, you have the '<' (less than) backwards above---  should read C<E<S, and 3<5<7.  

  • Upvote 1

Share this post


Link to post
Share on other sites
12 hours ago, balthazar said:

• Remember: the Tahoe uses Escalade parts.

Wouldn't they both be built with Silverado parts as it's the newest vehicle? 

Share this post


Link to post
Share on other sites
12 hours ago, balthazar said:

• It would be really sad if the urus becomes the top selling Lambo.

• Of course CTS sales decreased- it moved upmarket. S<E<C, 7<5<3. If BMW increased the price of the 3 to the 5, it's volume would lower also.

Dealers are already selling out of their Urus allotments and the thing doesn’t even arrive for 6 months.  It will be their best seller for sure.

The CTS thing is exactly my point, the CTS should have stayed a 3-Series fighter and they should have had a new product above it.  Same with Escalade, it should stay at its current price and a new SUV should go above it.  

Share this post


Link to post
Share on other sites
17 minutes ago, smk4565 said:

Dealers are already selling out of their Urus allotments and the thing doesn’t even arrive for 6 months.  It will be their best seller for sure.

The CTS thing is exactly my point, the CTS should have stayed a 3-Series fighter and they should have had a new product above it.  Same with Escalade, it should stay at its current price and a new SUV should go above it.  

BMW has not stayed there, 2 series is the old 3 series as they pushed every model up. Hell the current 3/4 series is what the old 5 series used to be. Even MB has pushed the size and features up on their models so that lower models are now what the upper older versions used to be.

  • Upvote 1

Share this post


Link to post
Share on other sites
2 hours ago, dfelt said:

BMW has not stayed there, 2 series is the old 3 series as they pushed every model up. Hell the current 3/4 series is what the old 5 series used to be. Even MB has pushed the size and features up on their models so that lower models are now what the upper older versions used to be.

There is size creep in all segments, but the CTS is larger than a 5-series.  The CTS-V is 197.6 inches long that is bigger than the STS.  The 3-series sedan is 184.5 inches long, it also doesn't have a sales problem like the CTS has.

Share this post


Link to post
Share on other sites
1 hour ago, smk4565 said:

There is size creep in all segments, but the CTS is larger than a 5-series.  The CTS-V is 197.6 inches long that is bigger than the STS.  The 3-series sedan is 184.5 inches long, it also doesn't have a sales problem like the CTS has.

The ATS is sized to compete w/ the 3-series. 

Share this post


Link to post
Share on other sites
9 minutes ago, Cubical-aka-Moltar said:

The ATS is sized to compete w/ the 3-series. 

The ATS is priced to compete with the 1/2 series and CLA. More space in a Cadillac is not a disadvantage.

The new Navigator has a much better interior than the current Escalade.  The Escalade is more nimble, but in this segment, that is a very relative statement anyway.   That said, I'm told the new Escalade will have an Escala looking interior.  Much less brash than the Navigator, but no less luxurious. 

Share this post


Link to post
Share on other sites

No need for Cadillac to worry, when the Maybach SUV goes on sale next year Lincoln will be giving $10,000 off on all Navigators with 0% financing.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By William Maley
      Back in November, General Motors announced that it would end production of six models in North America. One of the models listed was the Cadillac CT6 sedan. This surprised a number of people considering that the brand had only refreshed model, and announced some key improvements such as adding Super Cruise and a new twin-turbo V8 engine known as Blackwing.
      But GM President Mark Reuss and Cadillac President Steve Carlisle said they are looking into various options to keep the CT6 on sale in the U.S. The two explained that model was never meant to be on the chopping with other models such as the Buick LaCrosse and Chevrolet Impala. But officials at the time did not mention those plans in the original announcement in November. 
      "From the very beginning, we never said that CT6 was going away, because we're very keen on launching Blackwing and Super Cruise and all those sort of things," said Carlisle on the floor of the Detroit Auto Show.
      "We're working hard to find other alternatives to that. We have some time."
      What are the alternatives being considered? Automotive News reports that GM may move production to another plant (ultimately depending on the negotiations with the UAW to take place later this year), or import the model from China - an idea Carlisle said "would be the least-preferred option."
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Back in November, General Motors announced that it would end production of six models in North America. One of the models listed was the Cadillac CT6 sedan. This surprised a number of people considering that the brand had only refreshed model, and announced some key improvements such as adding Super Cruise and a new twin-turbo V8 engine known as Blackwing.
      But GM President Mark Reuss and Cadillac President Steve Carlisle said they are looking into various options to keep the CT6 on sale in the U.S. The two explained that model was never meant to be on the chopping with other models such as the Buick LaCrosse and Chevrolet Impala. But officials at the time did not mention those plans in the original announcement in November. 
      "From the very beginning, we never said that CT6 was going away, because we're very keen on launching Blackwing and Super Cruise and all those sort of things," said Carlisle on the floor of the Detroit Auto Show.
      "We're working hard to find other alternatives to that. We have some time."
      What are the alternatives being considered? Automotive News reports that GM may move production to another plant (ultimately depending on the negotiations with the UAW to take place later this year), or import the model from China - an idea Carlisle said "would be the least-preferred option."
      Source: Automotive News (Subscription Required)
    • By Drew Dowdell
      Cadillac released images and information on their all-new 2020 Cadillac XT6 today.  Based on the same chassis as the GMC Acadia, the new XT6 slots between the XT5 and the Escalade in terms of size and price.  Two trims are available, Premium Luxury and Sport.
      The XT6 is powered by the familiar 3.6 liter V6 with 310 hp. Active fuel management comes standard and allows the engine to run in 4-cylinder mode when V6 power is not needed.  All-Wheel Drive is available on the Premium Luxury and is standard on Sport. The Sport model's AWD is a more advanced active twin-clutch design.  Sport also comes with Continuous Damping Control (note: Not Magnetic ride control - DD) and a faster steering ratio for more enthusiastic performance.  Power is fed through a 9-speed automatic transmission with Electronic Precision Shift. 
      Inside the XT6 provides the driver and all passengers with "the best seat in the house". A contemporary interior aesthetic surround occupants with semi-aniline leather seating surfaces, carbon fiber trim on the Sport, and wood on Premium Luxury models.  Additionally available interior features include an in-cabin air ionizer, heated and ventilated front seats, heated second-row seats,  and a standard heated steering wheel. All models come with 6 USB ports for charging devices.
      Cadillac's CUE Infotainment system now includes 1-touch pairing with users' phones via near field communication and a new rotary controller with intuitive jog functionality. CUE will now allow drivers to store their profile in the cloud for customization across compatible vehicles. 
      Additional CUE features include:
      Updated navigation functionality with natural address entry. Capable of supporting SiriusXM 360L. 4G LTE Wi-Fi® hotspot (includes 3GB or three months of data, whichever comes first). Apple CarPlay and Android Auto for compatible smartphones. Next-generation, 15-watt wireless charging. Teen Driver. The 2020 Cadillac XT6  will be built in Spring Hill TN and will go on sale later this year.
      2020 Cadillac XT6 Debut.pdf

      View full article
    • By Drew Dowdell
      Cadillac released images and information on their all-new 2020 Cadillac XT6 today.  Based on the same chassis as the GMC Acadia, the new XT6 slots between the XT5 and the Escalade in terms of size and price.  Two trims are available, Premium Luxury and Sport.
      The XT6 is powered by the familiar 3.6 liter V6 with 310 hp. Active fuel management comes standard and allows the engine to run in 4-cylinder mode when V6 power is not needed.  All-Wheel Drive is available on the Premium Luxury and is standard on Sport. The Sport model's AWD is a more advanced active twin-clutch design.  Sport also comes with Continuous Damping Control (note: Not Magnetic ride control - DD) and a faster steering ratio for more enthusiastic performance.  Power is fed through a 9-speed automatic transmission with Electronic Precision Shift. 
      Inside the XT6 provides the driver and all passengers with "the best seat in the house". A contemporary interior aesthetic surround occupants with semi-aniline leather seating surfaces, carbon fiber trim on the Sport, and wood on Premium Luxury models.  Additionally available interior features include an in-cabin air ionizer, heated and ventilated front seats, heated second-row seats,  and a standard heated steering wheel. All models come with 6 USB ports for charging devices.
      Cadillac's CUE Infotainment system now includes 1-touch pairing with users' phones via near field communication and a new rotary controller with intuitive jog functionality. CUE will now allow drivers to store their profile in the cloud for customization across compatible vehicles. 
      Additional CUE features include:
      Updated navigation functionality with natural address entry. Capable of supporting SiriusXM 360L. 4G LTE Wi-Fi® hotspot (includes 3GB or three months of data, whichever comes first). Apple CarPlay and Android Auto for compatible smartphones. Next-generation, 15-watt wireless charging. Teen Driver. The 2020 Cadillac XT6  will be built in Spring Hill TN and will go on sale later this year.
      2020 Cadillac XT6 Debut.pdf
    • By William Maley
      2018 saw a continuation of near-record sales and large profits for automakers in the U.S., but that appears to be coming to an end. Bloomberg reports various factors are conspiring to end this trend such as increasing interest rates and the average price of a new vehicle hitting record highs. While some may point out that 2018 saw a 0.3 percent increase in vehicle deliveries (17.6 million according to AutoData), analysts point that this is due to the tax cuts brought by President Donald Trump last year and automakers selling more vehicles to fleets.
      Charlie Chesbrough, senior economist at Cox Automotive said that the big U.S. automakers saw deliveries fall at a faster rate "in the last three months of the year than for all of 2018."
      "For some automakers, the slowdown has already begun,” said Chesbrough.
      Look at General Motors as an example. For the fourth quarter, GM reported a 2.7 percent drop in sales - 785,229 vs. 806,739 for 2017.
      “We’ve had a gradually declining trend on retail even with the tax changes. That’s the kind of trajectory we would anticipate given continued headwinds on the economic side,” said Emily Kolinski Morris, Ford’s chief economist.
      What are we expecting in terms of sales for the coming year? It seems everyone agrees that it will be at or under 17 million vehicles, but estimates vary widely with one predicting 16.5 million due to reductions in fleet purchases. Executives are quick to caution that sales won't implode this year. Scott Keogh, president and chief executive officer of Volkswagen of America said on a conference call that unemployment is low and consumer confidence is high. But the issue uncertainty with Keogh saying consumers are watching "interest rates rise and are wary of what’s been a volatile stock market of late."
      “When the headlines say that the market has had the worst falloff since 2008, that will rattle consumer confidence,” he said.
      Source: Bloomberg (Subscription Required)

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×