2014 Cadillac Escalade Luxury on 2040-cars

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Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

Cadillac ELR getting massive discounts, some up to $14,000

Well, that didn't go as planned. General Motors had marketed the Cadillac ELR extended-range plug-in as a premium version of the Chevrolet Volt with some Caddy refinements. Now, it looks like that premium, at least from a price standpoint, is shrinking. Shoppers in a number of states are reporting that GM and its dealers are discounting the ELR in order to move more off dealer lots. The issue is that few people are biting at the official price tag of about $76,000, so GM has started offering as much as $8,000 worth of dealer and customer incentives, Transport Evolved reports. More recently, dealers in states such as Florida, Texas and Maryland are offering discounts in the $12,000-to-$14,000 range, and that's before any federal and state plug-in incentives kick in. It's not difficult to guess why. Through the first half of the year, GM sold fewer than 400 ELRs. Last month, Caddy moved just 97 units, or about as many as Tesla sells of its Model S in a day. Perpahs recent spy shots that reveal a test ELR that appears to up the sportiness quotient, with touches such as larger wheels and brakes, will also help sales. Check out Autoblog's "First Drive" impressions of the ELR here.

Cadillac to fight Audi A3, Mercedes CLA with small rear-drive sedan?

Compact luxury sedans are fast becoming the trend among upscale automakers. Mercedes has the new CLA (and its many platform-mates), BMW has the 1 Series and 2 Series, Audi has the A3 and, though Lexus apparently isn't interested in anything smaller than its CT 200h, Infiniti is getting in on the action with a compact model of its own. It would only follow logically, then, that Cadillac should launch a competitor, and according to the latest reports, that's just what it has in store.
Speaking with Car and Driver, Cadillac marketing chief Uwe Ellinghaus confirmed that such a project is in the works. But unlike its rivals, Cadillac aims to go with a rear-wheel-drive layout. This despite research that apparently indicates that a surprising 80 percent of owners think that their BMW 1 Series is front-drive. It's the driving dynamics and styling proportions that motivate Ellinghaus and his colleagues to stick with rear-drive, however.
The new model would in all likelihood be based on the same GM Alpha architecture that underpins the ATS and CTS - a platform that has helped Cadillac keep the weight down on both models and which is expected to underpin the next-generation Chevy Camaro, as well. The sub-ATS could be positioned as a four-door 2+2, however, as the ATS grows a little larger in its next iteration in order to make room for its new baby brother.