Why Caddy has 2 ways to play the ELR pricing game

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Thread: Why Caddy has 2 ways to play the ELR pricing game

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    Why Caddy has 2 ways to play the ELR pricing game

    Why Caddy has 2 ways to play the ELR pricing game
    Automotive News
    January 17, 2013
    by Mike Colias

    DETROIT -- The most common question on the lips of onlookers who saw Cadillac unveil its flashy and fuel-sipping ELR plug-in hybrid at the auto show was: "How much?"

    It's too early for General Motors execs to discuss price. The coupe won't hit showrooms for about a year. But the guessing has begun.

    I've heard estimates anywhere from the low $50,000s to north of $70,000.

    How could the spread be that big? Because GM could look at the decision in two very different ways:

    1. Put a relatively inexpensive sticker on it -- let's say low $50,000s. That would show that GM wants to get some modest volumes from the ELR so it can continue to drive down per-unit component costs of the Volt powertrain.

    2. Slap a big sticker on it -- say mid-$60,000s or higher -- to test just how rejuvenated the Cadillac brand is.

    Full article at link.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Going #2 is always a dubious choice.

    This is clearly a niche market vehicle and despite the packaging, elevating the price into Model S territory will bring with it invariable comparisons that the ELR can't win.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    I think Option #1 as the ELR offers little that is not offered in others IE MODEL S or VOLT and I do not think the ELR has the "GREEN cred" to usurp the Prius as the "GREEN ACCESSORY" for the hollywood IMAGE types

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    #1 for business
    #2 for ego (You feelin lucky? Well are ya?)

    Either way, it's a big wager. I hope the Volt price drops significantly into the $30s as the ELR begins at about $50k. This is enough gap to be healthy, but not overly competitive. Equally, a Volt interior update is welcomed to bring it up to speed with their new direction.
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    Re: Why Caddy has 2 ways to play the ELR pricing game

    I think GM should aim for the lowerish end of that range.

    I still say 57,495 should be the base price (including destination). That way they can advertise starting under $50K after rebate.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Quote Originally Posted by donmateo View Post
    #1 for business
    #2 for ego (You feelin lucky? Well are ya?)

    Either way, it's a big wager. I hope the Volt price drops significantly into the $30s as the ELR begins at about $50k. This is enough gap to be healthy, but not overly competitive. Equally, a Volt interior update is welcomed to bring it up to speed with their new direction.
    With an all new Volt coming in the next few years I don't see major changes to the current one. A small price drop is possible. Maybe to 37,495 (including destination)? But I don't see anything major happening to the Volt untill 2.0 launches on D2UX.

    If anything GM should keep the price the same and drop the invoice price of the Volt. This would give the dealers more motivation to move them and get them to stop bitching about tools.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Quote Originally Posted by nruggiero View Post
    How could the spread be that big? Because GM could look at the decision in two very different ways:

    1. Put a relatively inexpensive sticker on it -- let's say low $50,000s. That would show that GM wants to get some modest volumes from the ELR so it can continue to drive down per-unit component costs of the Volt powertrain.

    2. Slap a big sticker on it -- say mid-$60,000s or higher -- to test just how rejuvenated the Cadillac brand is.
    They should do #1 but will probably do #2. GM's latest strategy seems to be sticker-price everything to the moon... and then come in with cheapo lease deals if sales lag.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    I hope it doesn't go over $60k. I can't picture this vehicle commanding such a ridiculous price.

    I really don't want another XLR repeat. Hopefully, they learned from that experience and will be smarter this time.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    I think it should be about $6-8k more than a loaded Volt, because a Cadillac should not be any more than that. To me some of the pricing on the escalade is ridiculous compared to the tahoe and the xts
    Pricing was even more ridiculous when compared to the corvette.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    North of $70K? Why are they limiting this. It LOOKS 1,000 times better than the Volt and it does the same thing? Keep it low, take the sales niche tag off (that's just an excuse in case they don't sell anyhow) and see how many people buy it. Of course, with gas relatively cheap still, a nice loaded ATS seems good too.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Quote Originally Posted by nruggiero View Post
    I hope it doesn't go over $60k. I can't picture this vehicle commanding such a ridiculous price.

    I really don't want another XLR repeat. Hopefully, they learned from that experience and will be smarter this time.
    I agree. $10,000 more or so than the Volt will be about right or they will sit and GM will lose all the benefits of actually doing this car.

    They are already fighting an uphill battle with an excellent ATS and CTS. Different cars to be sure but pricing is pricing.

    There's really only one way to go with pricing if GM actually wants these out on the street for everyone to ogle.
    Last edited by big swede; 01-19-2013 at 05:37 PM.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Cadillac need prestige. Option #2 is a prestige generating move. The interior and exterior design seem to be world class. I can see them justifying asking $60k-68k

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    Sounds about right, $20-30k more for a Cadillac over a similar Chevrolet.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    My guess is they will price it at $59950.

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    Re: Why Caddy has 2 ways to play the ELR pricing game

    I say start it under $50K, say $49,890, and drop the Volt to $35,400

    This is before the $995 special paint (applied by humming birds?) and custom-fitted Louis Vuitton luggage...

    Let the $70K be for the Neiman Marcus Christmas 2013 Special Edition, in Purple Ozone tri-coat.
    Last edited by sfdenny; 01-19-2013 at 07:34 PM.

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