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Cadillac chief marketer admits ELR is 'a big disappointment'

During the Cadillac XT5 global launch in Dubai, Automobile interviewed Cadillac Chief Marketing Officer Uwe Ellinghaus and got the CMO to touch on just about every major issue affecting the brand and the industry. After two years on the job, having come from 15 years at BMW, Ellinghaus naturally started with the "passionate Cadillac customers" and "iconic brand" spiel, then they got into a top-down look at where America's preeminent luxury brand stands. Ellinghaus said Cadillac is in a period of transition, lately focused on smaller and more performance-oriented vehicles, which has alienated a chunk of veteran customers and left others trying to figure out what Cadillac is about. He believes that "for a few more years, the products will probably be stronger than the brand," while he does his work of conveying what the company has to offer. But the brand had to make the switch, because "Generation X and Y will make 80 percent of all actual buyers in the next five years..." On top of that, he'll be working on making sure the customer and dealership experiences are where they need to be. Speaking of dealers, Ellinghaus thinks the future will not be brick-and-mortar shops, but digital pickup-and-delivery services. "Nobody wants to go to a dealership for service and maintenance," he says. He said the ELR has been "a big disappointment," but it has taught Cadillac that converting its existing line-up to plug-in hybrids is a better way forward. However, he characterized the plug-in hybrid as "the next all-wheel drive," in that everyone's going to offer it soon, so it will be "an entry ticket into luxury automobiles rather than a differentiating aspect." The CMO thinks the CTS is suffering because of the decline in the US midsize luxury sedan market in general thanks to the SUV and crossover craze, so the brand really needs another small SUV. Head over to Automobile for more of Ellinghaus' intriguing answers, like "I do believe that very long-term hydrogen is really the way," and "it's time to get real" in Europe. Taking a dig at Volkswagen on that last matter, he also said, "I think the absence of the diesel is not as much of an issue as it was eight weeks ago." Related Video:

Autoblog Podcast #326

Easter Jeep Safari concepts, Shelby 1000, 2014 Cadillac CTS and Mercedes CLA45 AMG leaks
Episode #326 of the Autoblog Podcast is here, and this week, Dan Roth and Zach Bowman talk about this year's Easter Jeep Safari concepts, the 1,200-horsepower Shelby 1000 and leaked images of the 2014 Cadillac CTS and Mercedes-Benz CLA45 AMG. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #326:

Cadillac dealers get $5,000 incentive for ELR test drives

The 530 Cadillac dealers - out of 940 total dealers - that signed on to sell the brand's ELR for $75,000 or lease it for $699 per month have managed to move 247 of them in the last five months. That's a little less than two cars for each dealer more than two dealers for each car if you need help with the math. With inventories of the luxury plug-in hybrid building up - Automotive News reports a 725-day supply - General Motors has created the Demonstrator Allowance Program to billow the sails on that slow moving ship, giving dealers $5,000 to promote ELR test drives.
A dealer with one ELR in its test fleet that racks up 750 test driven miles between May 1 and June 2 earns the fifty Benjamins, a dealer with two ELRs in the test fleet will get one hundred Benjamins. That will be added to summer incentives for dealers that pay $2,000 for units sold in July and $1,000 for units sold in August, while on the customer side, Cadillac has put "customer discount certificates" worth $3,000 on the hood for buyers and lessees.
Cadillac suggests this is about raising awareness of the ELR, but the question is how much dealers will be able to do for a car that observers - and buyers, apparently - still consider highly overpriced.