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Cadillac's Conundrum: Dare To Change Escalade?

18K views 165 replies 78 participants last post by  CJH 
#1 ·
Automotive News

April 20, 2015



Article Quotes:

To say the redesigned Cadillac Escalade is a hit would be an understatement.

A year after it reached showrooms, buyers are spending about $83,000 on average, up about $13,000 from the last generation. Sales more than doubled in the first quarter, to 7,901. Buyers have been snapping the ESV long-wheelbase model off the lot in less than a month on average.

Cadillac's product planners already are mulling the next iteration of the hulking SUV, says Cadillac boss Johan de Nysschen.

That's where it gets tricky.

The Escalade embodies almost none of the brand attributes Cadillac is using to transform itself. It's not a performance vehicle. It's not laden with new technology. It doesn't have a Cadillac-exclusive engine.

At the New York auto show last month, de Nysschen called the Escalade "an iconic subbrand" and "amazingly successful." He also acknowledged the delicacy in planning an encore.

"Can you think of the interesting conversations that take place in our planning meetings?" de Nysschen said. "How do you balance the desire to bring it into alignment with where we're taking the brand and the equally intense desire not to screw up a good thing?"
 
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#2 ·
"Can you think of the interesting conversations that take place in our planning meetings?" de Nysschen said. "How do you balance the desire to bring it into alignment with where we're taking the brand and the equally intense desire not to screw up a good thing?"
Of the many, many problems that Cadillac currently has, at least one is a very good problem to have.

So what to do? Does the next generation Escalade go its own way, or does the design, concept and reputation fold into Cadillac's new image?
 
#57 ·
Escalade must evolve to more closely fit the new Cadillac vision. But it has to be done with care and in a very slow manner.

You can't just change the premise of the Escalade over night. You'll shock the market.
But offering an Escalade that is tuned for performance would be a good way getting the market acclimated to the idea.

Also... raise the damn price of Escalade. Too much money is left on the table.
 
#3 ·
The new Escalade is selling like crazy for sure. I have seen a ton here in the Tampa Bay area and I have only seen 1 new Navigator. It is amazing I thought for sure sales would drop because of the increased price but the exact opposite has happened. Hats off to GM and Cadillac hopefully they don't screw it up on the next gen.
 
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#6 ·
They need to make more powerful, opulent and unique versions and charge accordingly.
They're doing crappy job of leveraging the Escalade. The need to move beyond these "off the rack" versions and into bespoke territory.
 
#35 ·
Yes. I think it's pretty easy to keep moving Escalade. Don't change it, just build on it.

Some modifications...

Powertrains

4.5TT V8
500/500 (base Escalade)

LT4
650/650 (Vsport)

Configurations

I would repackage the options and do away with the pleb trim levels.

All options are standalone:

Panaray – $3500
Driver Assist Package – $1100
Driver Assist Package Plus – $1900
Adaptive Cruise Control – $1200
Night Vision – $1500
Rear Entertainment System – $1800
Signature Lighting Package – $1000
Power-Retractable Assist Steps –*$1700
Panoramic sunroof*– $1500
Perfumer – $500

(+ $15700)

Platinum Editions would include all of the above and make the following available:

Sliding curtains – $3000
Humidor – $4500
Leather headliner – $3500
Executive Rear Seat Package –*$6000

(+ $17000)

Standard Escalades are the usual captain's chairs or bench rear seat, third rows, yadayada. Normal pleb Escalade.

Platinums get a hardwood cargo floor standard as well as the usual little visual upgrades. They come standard with every option in the (wait for it) standard Escalades.

Technologies

New technologies would include the CT6 mirror, upgraded CUE, auto parallel/perpendicular parking, CT6 recording tech, OTA updates via CUE, soft close doors, all-wheel steer.

Standard tech would include all of the above, current standard equipment, plus HUD, Automatic Seat-Belt Tightening, and Automatic Collision Prep.

Price Range
SWB
$80,000 –*$95,700

SWB 6.2L SC V8 Vsport
$100,000 – $115,700

Platinum
$100,000 – $117,000

Vsport Platinum
$120,000 – $137,000

LWB
+ $5,000 standard, +*$7,500 Platinum

AWD
+ $3,000

Sooo... a LWB Vsport Platinum with AWD would end up being ~$150,000, but only if you add ridiculous options.

You could break $160,000 with $5,500 per bespoke interior or exterior color.

A "designo" color option line could cost you ~$2,500 per "designo" metallic and ~$4,000 per "designo" matte and interior. Their "designo" equivalent would be basically an expanded line of color options. Just like designo.

I don't care what you call it. Platinum could have reduced-cost "designo" colors.
It'd preserve the normal Escalade but also leverage it 50% higher than it goes now. This doesn't include special editions... that are not tape packages.

They don't need to move it to Omega to do all that. The only things they need to changes is give it more engine options and an Omega-level interior. They can then charge much more for it.
I agree, moving to Omega would basically end up being deleterious to its image and diminish its character.
 
#7 ·
Well the Escalade magic formula works by leveraging the high volume Chevy & GMC utilities, Cadillac then tarts them up and generates a whopping profit by nearly doubling transaction prices while adding perhaps 20% to costs. There isn't an automaker in the world who wouldn't like to have the problem of where to go next with this money making machine. If they break substantially from this formula it is difficult to imagine the earnings being as lucrative. DFIU GM!
 
#9 ·
I'm thinking the balance that Cadillac could reach is using the Omega platform for the next-gen Escalade SUV/CUV.

1. Would still be a large, imposing, and dynamically styled vehicle.
2. Retain the RWD ruggedness, with optional AWD/4WD system(s).
3. Improved dynamic handling with Independent Rear Suspension.
4. Improved fuel economy.
5. Flexibility for wide range of models, Standard V8, Plug-in Hybrid, and a V-Series.
 
#13 ·
I'm thinking the balance that Cadillac could reach is using the Omega platform for the next-gen Escalade SUV/CUV.

1. Would still be a large, imposing, and dynamically styled vehicle.
2. Retain the RWD ruggedness, with optional AWD/4WD system(s).
3. Improved dynamic handling with Independent Rear Suspension.
4. Improved fuel economy.
5. Flexibility for wide range of model, Standard V8, Plug-in Hybrid, and a V-Series.

They don't need to move it to Omega to do all that. The only things they need to changes is give it more engine options and an Omega-level interior. They can then charge much more for it.
 
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#10 ·
Only 'conundrum' is the fact that everything Johan thinks you need to succeed isn't on the Escalade, and it is the most successful vehicle.

Conundrum is the notion that Cadillac has to make a Bimmer three imitator - or that the 'flagship' can't have a big and powerful 'chevy' V8 engine standard, but instead has to have a four banger.
 
#11 ·
JDN is really impressive. Any old GM exec would've either cancelled the Escalade because "they can do something better" or realize how much profit they were making and decide to make it even more similar to the Chevy to get more short term profits at the expense of the long term Escalade name. He's smart enough to realize what the Escalade is - a profit making anomaly that he needs to be careful with.

I think the Escalade's popularity is telling GM that practicality, boat hauling capability and size is desired, so keeping it on the chassis shared with GMC and Chevy is ok. I don't think the styling differences between the Suburban and the Escalade are fooling anyone, so keeping the shared chassis is ok.

But it's popularity is also telling GM that people are willing to pay extra $$ for the luxury version of the Suburban. With that Cadillac should up the exclusiveness via unique engines and even more opulent interiors. Cram in whatever gee whiz tech that is possible while still keeping it the same chassis as the Suburban - can they do 4 wheel steer and independent rear suspension? Maybe ad the Volt system in there to save some gas and improved acceleration. As much as it is contrary to every EPA requirement, make a V12. Keep the base price where it is, but have available tons of options that can take the Escalade up to something like $130,000+. Can they do aluminum or carbon fiber "sheet metal" to lighten the truck? Make all these luxury changes and it will be within Cadillac's new direction while further distancing it from GM's regular brands.
 
#19 ·
I say keep this torque monster exactly how it is......an extreme luxury hauler. In my opinion, the large version of the new SRX or XT whatever should be a Range Rover competitor focusing on purpose performance of off-roading in a luxurious package. The lower trim version could even compete with higher end Grand Cherokees.
 
#17 ·
It doesn't have a Cadillac-exclusive engine.
does any caddy have a caddy esclusive engine? the 3.6 DI engine in every CTS from my understanding is the same or similar as the one i had in my 2012 Impala. from my understanding there is no engine that is exclusive as the northstar engine was.
 
#71 ·
Exclusive to Cadillac, Pontiac, and Oldsmobile. I think Buick got them too.....
 
#20 ·
From what I have been told by folks who have been in JDN's executive meetings Cadillac is in a quandary over the Escalade. They hate it because it is not consistent with the brand they want to create or the customers they want to attract. The quandary for GM is that the big SUVs make too much money but are screwing up CAFE. GM can't build enough trucks and SUVs. However, I predict that the Escalade, Tahoe and Yukon will be downsized in order to meet the upcoming CAFE standards.
 
#21 ·
However, I predict that the Escalade, Tahoe and Yukon will be downsized in order to meet the upcoming CAFE standards.
I used to think a massive downsize was the only direction GM could go. But after seeing what they did with the CT6 and it's mixed material construction. I'd rather them utilize that before downsizing. I bet they could save major tonnage off the SUV/Trucks if they used the same construction methods.
 
#22 ·
If the Esco is selling for $83k, they need a 'baby Esco' that sells for $50-60k. A little higher than the Buick Enclave so they don't cannibalize, but affordable for upper middle class types and even people who can afford an Escalade but maybe don't want the stigma associated with it. Then the redesign (finally) the SRX, and add a sub-SRX to compete with the Q3/X1/GLA from ze Germans. 4 trucks and Cadillac can finally start making money. Cuz the cars ain't sellin'.

Small truck (XT3?)$30-40K
SRX replacement (XT5) $40-50k
baby Escalade (XT7) $50-70K
Escalade (no name change please) $75-100k

Look at me, I'm a product planner!
 
#29 ·
Seems to me they could make a few upgrades - an independent rear end, perhaps, or a differentiated engine (maybe a supercharged version that could do battle with RR), air suspension.

Make improvements within the basic format of the pick-up derived machine that's such a success.

Some would say: yeah, but its selling without those. I would say: eventually, content wins. Keep the Escalade a badge engineered Chevy, and eventually its reputation will sour. Keep it updated, and the money machine could go on a long time.
 
#32 ·
The Escalade embodies almost none of the brand attributes Cadillac is using to transform itself. It's not a performance vehicle. It's not laden with new technology. It doesn't have a Cadillac-exclusive engine.
At the New York auto show last month, de Nysschen called the Escalade "an iconic subbrand" and "amazingly successful." He also acknowledged the delicacy in planning an encore.

"Can you think of the interesting conversations that take place in our planning meetings?" de Nysschen said. "How do you balance the desire to bring it into alignment with where we're taking the brand and the equally intense desire not to screw up a good thing?"
Maybe Cadillac should be transforming more into Escalade than a Germany luxury knockoff.

Reminded of the phrase, "fix it til it's broke."
 
#33 ·
The current formula is working so it doesn't need to be changed. Leave it alone and use the same formula to build a flagship sedan. Why wouldn't it work? Apparently people aren't caring too much that the Escalade isn't a Range Rover. Sure, you can add technology, options and power to offer a more expensive version if you want. Maybe people will buy it. But that doesn't necessarily mean changing the formula. The same platform and engine can be used with a bump in power if desired but the important things are the appearance on the outside and the experience on the inside. That's why so many people are buying the Escalade.
 
#58 ·
The current formula is working so it doesn't need to be changed. Leave it alone and use the same formula to build a flagship sedan. Why wouldn't it work? Apparently people aren't caring too much that the Escalade isn't a Range Rover. Sure, you can add technology, options and power to offer a more expensive version if you want. Maybe people will buy it. But that doesn't necessarily mean changing the formula. The same platform and engine can be used with a bump in power if desired but the important things are the appearance on the outside and the experience on the inside. That's why so many people are buying the Escalade.

We already discovered people on GMI don't like that idea...





;)
 
#34 ·
The Escalade embodies almost none of the brand attributes Cadillac is using to transform itself
Cadillac is the most retarded company of GM.... The Escalade IS that a real Cadillac supposed to be... Big, Comfy, Quite hand Luxurious. REAL Cadillacs weren't known for Super Z28 Handling....Thats what V-Series were for ever since they came out.
 
#42 ·
Solid rear, get that out of there and engineer an IRS to the chassis.
 
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