General Motors is sticking to pricing strategy for Cadillac ELR

Article by Anita Panait, on August 29, 2013

Despite a decision of many carmakers to trim the sticker price of their electrified vehicle offerings, General Motors remains bullish of the pricing for its Cadillac ELR plug-in hybrid. When GM unveiled the ELR in January, it executives said they plan to fix a lofty sticker price to convey exclusivity. But GM and its rivals has been cutting prices of their own EVs.

For instance, GM trimmed $5,000 off the sticker price of the Chevrolet Volt, which shares its powertrain with the ELR. Also, the BMW priced its new i3 EV at $42,275 including shipping, which is only $2,280 pricier that the previous tag for the Volt. Despite the recent occurrences, Bob Ferguson, senior vice president of global Cadillac told Automotive News that that they have not revised their pricing plans for the ELR plug-in hybrid, which will be rolled out in March 2014. Ferguson said that they are "really confident about that vehicle," adding that there will be "a scramble" for the ELR.

Ferguson remarked that was encouraged by the success Tesla Motors, a sign that pricing is holding up far better in the luxury segment than in mainstream brands. IHS Automotive expects GM to sell just 2,100 ELRs in the US in 2014 and 2,700 in 2015. According to Jim Hall, principal of research firm 2953 Analytics Inc., the ELR will be a halo car for Cadillac, while the i3 has a different role in BMW's lineup. He noted that Cadillac's pricing strategy for the ELR is not driven by volume, but by image.

He said that the ELR could be among Cadillac's highest-priced vehicles. Escalade models and the CTS V series are priced from the mid-$60,000s to higher than $70,000.The ELR uses the Volt's underpinnings but has edgier styling and extra touches, such as real wood accents, a suede headliner and a storage compartment accessed through an electronic cover.

If you liked the article, share on:

Comments

Recommended

If this design study leads to the eventual and much-awaited BMW 8 Series grand tourer, then we wouldn’t complain. After all, it looks so promising. It isn’t the final version...
by - May 26, 2017
After successfully closing a deal with Volvo in 2010, China’s Geely is now securing full ownership of Lotus -- the maker of Exige, Evora, Elise and 3-Eleven. The Chinese car...
by - May 26, 2017
Volkswagen of America has a nice surprise for potential customers of the new VW Tiguan (2018 model year). The latest iteration of the Tiguan – set to arrive in the...
by - May 25, 2017
Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries