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Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

U.S. new-vehicle sales in 2018 rise slightly to 17.27 million [UPDATE]

DETROIT — Sales of new vehicles in the U.S. rose slightly in 2018, defying predictions and highlighting a strong economy. Automakers reported an increase of 0.3 percent over a year ago to 17.27 million vehicles. The increase came despite rising interest rates, a volatile stock market, and rising car and truck prices that pushed some buyers out of the new-vehicle market. Industry analysts and automakers said strong economic fundamentals pushed up sales and should keep them near historic highs in 2019. "Economic conditions in the U.S. are favorable and should continue to be supportive of vehicle sales at or around their current run rate," Ford Chief Economist Emily Kolinski Morris said after the company and other automakers announced their sales numbers Thursday. That auto sales remain near the 2016 record of 17.55 million is a testimonial to the strength of the economy, said Mark Zandi, chief economist at Moody's Analytics. The job market, he said, has created new employment, and wage growth has accelerated. "That's fundamental to selling anything," he said. "If there are lots of jobs and people are getting bigger paychecks, they will buy more." The unemployment rate is 3.7 percent, a 49-year low. The economy is thought to have grown close to 3 percent last year, its best performance in more than a decade. Consumers, the main driver of the economy, are spending freely. The Federal Reserve raised its key interest rate four times in 2018 but is only expected to raise it twice this year. Auto sales also were helped by low gasoline prices and rising home values, Zandi said. It all means that people are likely to keep buying new vehicles this year even as they grow more expensive. The Edmunds.com auto-pricing site estimates that the average new vehicle price hit a record $35,957 in December, about 2 percent higher than the previous year. It will be harder for automakers to keep the sales pace above 17 million because they have been enticing buyers for several years now with low-interest financing and other incentives, Zandi said. He predicts more deals in the coming year as job growth slows and credit tightens for higher-risk buyers. Edmunds, which provides content, including automotive tips and reviews, for distribution by The Associated Press, predicts that sales will drop this year to 16.9 million.

2017 Cadillac XT5 cuts weight, adds room over SRX [UPDATE]

UPDATE: This post has been updated with a full set of official photos. Impressions on the interior and exterior have also been added. The attention of Cadillac fans may be focused on the new CT6 sedan, but the most important new vehicle in the New York-based company's quiver might be the all-new XT5. Cadillac officially unveiled the SRX replacement today ahead of its full debut in Los Angeles next week. Short for Crossover Touring 5, the new XT5 drops 278 pounds over the old SRX, while offering an extra 3.2 inches of interior space. The XT5's face balances the best parts of the Escalade and CT6's fascias, with a strong egg-crate grille and prominent LED accent lights. It looks good scaled to a vehicle of this size. The taillights curve up and over the rear haunches, which feed into a strong shoulder line that runs towards the front of the car. It's a solid look, and one we're looking forward to seeing in person. The interior looks very, very nice, with warm leather and wood trimmings. The steering wheel, with its large, central wood accent, looks remarkably good. In fact, it might be one of our favor parts, if only because it's such a bold piece of design. We aren't crazy about the sheer abundance of buttons on the wheel, though. All four spokes are covered, and it just looks kind of cluttered. As is the trend nowadays, the center console features a floating bridge design with plenty of storage space underneath. Our early impression of the leather-wrapped dash is positive, although as is so often the case, we need to get a hands on before rendering a final judgment. There are no major surprises under the hood. Like the current SRX, the XT5 utilizes the same 3.6-liter V6 as the CTS and ATS sedans. Start/stop has been fitted, which should provide a boost in fuel economy although no mileage figures have been published yet. Cadillac will also offer a standard 2.0-liter turbocharged four-cylinder XT5, although for reasons that aren't clear, it's only for the Chinese market. This seems like a misstep in our eyes, considering the XT5 will challenge the likes of the BMW X3, Audi Q5, and Mercedes-Benz GLC – all of which offer four-cylinder turbos. With the V6, the XT5 delivers 310 horsepower and 270 pound-feet of torque. While there's more total horsepower than the Lexus, Audi, or BMW, the 3.6 still faces a torque deficiency versus the turbocharged X3 xDrive35i or supercharged Audi V6. The XT5 has a standard eight-speed automatic transmission.