Cadillac hikes output of Escalade SUV over strong demand

Article by Andrew Christian, on January 16, 2015

Strong demand for the Cadillac Escalade SUV amid has prompted the carmaker to increase its output. According to Cadillac chief Johan de Nysschen, production of Escalades at GM’s Arlington, Texas, assembly site will be expanded to bring over 2,000 more SUVs – which means the luxury brand has an annual supply of 32,000 trucks.

In 2013, Cadillac managed to sell 30,469 MY2014-2015 Escalade and Escalade ESV models. Supply for the Escalade has been tight since its launch last year, with dealers saying that customers who purchased the SUV had to wait for a month or more before receiving their units since the vehicles were being held at the plant for quality inspections and last-minute fixes.

GM product chief Mark Reuss remarked that the carmaker has taken extra time to get the SUV’s hand-stitched interior right. “We’re learning how to make that at rate with high quality,” Reuss said.

Likewise, De Nysschen disclosed that that axle supply has been limited, thereby restricting the SUV’s availability. He noted that Cadillac dealers only have around a 15-day supply of Escalades.

He told Automotive News that Cadillac’s supplier is “challenged to ramp up production quickly.” Dealers, meanwhile, have divulged that most customers of the MY2015 Escalade have been paying the full sticker price. The base MY2015 Escalade has a starting price of $74,960 while the Platinum model carries a tag $96,865.

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