GM Offers Cadillac Dealers $5,000 To Push ELR Sales – Buyers and Lessees Get $3,000 Discount Certificate

3 years ago by Eric Loveday 32

Cadillac ELR Test Drive Tour

Cadillac ELR Test Drive Tour

Cadillac ELR Test Drive Tour

Cadillac ELR Test Drive Tour

Building on the early initial success of Cadillac’s West Coast mobile ELR test drive tour, General Motors has decided it will attempt to take the ELR test drive event to the nationwide level.

GM is counting on dealers for this nationwide effort and, as such, is willing to offer individual dealerships up to $10,000 for pushing the Cadillac ELR.

First, let’s revisit Cadillac ELR inventory levels so that we can get an understanding of GM’s inclination to promote ELR sales.

In early May, we reported that Cadillac ELR inventory had reached nearly 2,000 units, or a 2-year supply given the current average rate of ELR sales.

General Motors is obviously not pleased with ELR sales (247 units in 5 months), so it put in place a program that benefits dealers who promote the ELR and buyers/lessees who purchase the ELR.

Cadillac ELR

Cadillac ELR

According the the Wall Street Journal, the specifics of the ELR promotional program break down as follows:

Demonstrator Allowance Program

“The demonstrator allowance programs promises $5,000 for each ELR designated as a test vehicle between May 1 and June 2. Each vehicle must accumulate a minimum of 750 miles from test drives, which must be logged by the dealer.”

“Dealers who have fewer than seven unused ELR models in stock can designate one for the demonstrator program. Those who have more can put two ELRs in the program helping them collect $10,000. Dealers can collect an additional $2,000 for every ELR they sell in July and an extra $1,000 for every one sold in August.”

Cadillac spokesman David Caldwell stated:

“For many drivers, electrification is still foreign to them.  The program gives dealers the freedom to give customers that experience. This [ plug-in hybrid] is also a different idea around our brand and we need to take our time with this. We are still in the early days.”

That’s the dealer benefit part of the program, but we’re more interested in the deal now available for buyers/lessees of the Cadillac ELR.  That part of the program consists of a $3,000 customer discount certificate that can be applied to purchases and leases.

We predicted that Cadillac would be forced to offer deals on the ELR after announcing its MSRP of $75,995.  The deals are now beginning to surface.  We suspect additional ELR deals will come in the months ahead.  Maybe someday you’ll  be able to buy an ELR at a price that begins with the number 5…Maybe.

Source: Wall Street Journal

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32 responses to "GM Offers Cadillac Dealers $5,000 To Push ELR Sales – Buyers and Lessees Get $3,000 Discount Certificate"

  1. MDEV says:

    Another sample of why EVs sales can’t work in the dealer model.

  2. IDK says:

    It would be interesting to see the research that indicated this was a consumer wanted car! I have a gut feeling this will be an epic fail.

    1. kdawg says:

      “Awards and recognition
      In 2009, the Converj concept was awarded “Best Concept Vehicle” in the Eyes on Design Awards, “Most Significant Concept Vehicle of 2009” in the North American Concept Vehicle of the Year Awards and “Specialty Concept Vehicle of the Year” by the Southeast Automotive Media Organization.

      In 2012, Green Car Journal selected the ELR as one of the five finalists in the Green Car Vision Awards.

      In 2013, the ELR was awarded “Best Production Vehicle” in the Eyes on Design Awards”
      ———

      The question is; is it better to start w/a high price, then whittle it down to generate sales, or start w/a lower price? Apple seems to think it’s better to start w/a high price, then discount their products. We’ll see if this transitions well to cars.

      1. TomArt says:

        So far, so good for Tesla…the top-down approach to tech development and gaining capital seems to be working…

  3. QCO says:

    I wouldn’t even give it a look until there is $20k on the hood.

    1. Phatcat73 says:

      You’re a generous man

  4. Phatcat73 says:

    I wonder what the GM product manager is thinking after comparing the car to a Tesla before the ELR hit the showrooms.

    1. QCO says:

      “Where is my next job….”

  5. Nelson says:

    GM should be straight forward (transparent) and put out a statement saying they have fired the management team responsible for pricing the ELR so high and have re-priced the vehicle from $55-$65K. They should also offer early buyer’s price adjusted refunds. GM needs to bite the bullet before it’s too late.

    NPNS! SBF!
    Volt#671

    1. vdiv says:

      The problem with the ELR is not so much the price. It is the existence of the more practical and more efficient Volt. GM should have pushed the envelope with the ELR’s drivetrain further. Imagine a 60+ mile AER ELR with a 6.6 kW onboard charger, CCS plug, and a heat pump.

      Instead they opted for economy of scale, reusing the parts bin, and that does not bode well when trying to sell a “luxury” car.

      1. kdawg says:

        Heat pumps don’t work when it’s -10 out. There’s more differences than most think. People always like to say “they just put lipstick on a Volt”, but that’s not the case.

        Also, almost every luxury car has a lower-priced version under a different brand, but the luxury models still sell for a reason.

        1. vdiv says:

          There is a lot of time in the year when the temperatures are between 60 and -10 deg F where a good heat pump would do wonders to efficiency and range.

          The “lipstick” aside the issue with the ELR is more in the “foundation”.

          Had the next Volt’s technology premiered in the ELR it would be doing much better now, even at $76k.

        2. HVACman says:

          Actually, some of the new ductless mini-split heat pumps we specify are rated down to -7 deg. F with a COP of almost 2.0 and have worked in real-life conditions below -15 deg. F.

          I’m sure any EV with a heat pump will also have a backup electric resistance heat strip for those “extreme” conditions. In the big picture, a heat pump in an EV means that instead of taking a big AER hit due to heating loads in half of the world for 40% of the year, an EV would be inefficient for 10% of the world for 20% of the year. That is a huge improvement and well worth the effort.

      2. TomArt says:

        Don’t forget boosting performance…

        1. vdiv says:

          I have yet to meet a Volt driver who thinks their car has a deficient performance. Handling maybe, but the performance is just peachy. The ELR to its credit improves slightly on both.

  6. GeorgeS says:

    I wonder what the best monthly lease rate is now? It’s a little like the Volt. If you look at the sticker you get sticker shock but the lease deals make it more manageable.

    1. Thomas J. Thias says:

      You are so right GeorgeS!

      Spring, 2011, the Chevy Volt EREV Lease, Ally Bank | US Bank:
      $399.00 Month, 12,000 miles/year, $3,120.00 up front.

      Spring, 2012, the Chevy Volt EREV Lease,
      Ally Bank | US Bank:
      $359.00 month, 12,000 miles/year, $2,650.00
      up front. ( When I jumped in! Figured I’d save $200.00 month in fuel after bout a buck a day electric fuel. I have- Net Cost To Drive, $149.00!

      Spring, 2014, the Chevy Volt EREV Lease,
      Ally Bank | U.S. Bank | GM Financial
      $269.00 a month, 12,0000 miles/year, $2,679
      up front. ( Were I to lease NOW saveing $200.00 month in fuel after bout a buck a day electric fuel. I have- Net Cost To Drive, $49.00!)

      Link Goes To Chevrolet Volt EREV Finance And Product Information Pages-

      http://www.chevrolet.com/volt-electric-car.html

      While I coined the term, Net Cost To Drive (NCD) to establish the heavy costs benefits of electric fuel over the alternative fuels of gas or diesel, Elon Musk, C.E.O. of Tesla Motors pitches NCD as, “The True Cost Of Ownership/Effective Monthly Cost.”

      Check out his “Effective Monthly Cost” calculator. This formula, like mine can reduce the cost of a buy and especially a lease of an Electric Fueled Vehicle massively!

      Link Goes To Tesla Motors, “True Cost To Own,” Formula Page-
      Scroll Down For The Tesla Formula Of Cost Reduction-

      http://www.teslamotors.com/true-cost-of-ownership

      Best-

      Thomas J. Thias

      Sundance Chevrolet Inc.

      517-749-0532

      Twitter.com/AmazingChevVolt

      1. Thomas J. Thias says:

        GeorgeS-

        To answer your question.

        Now using The Tesla True Cost To Own Formula posted above, the Stunning Cadillac ELR Extended Range Electric Luxury Coupe, to lease now drops to $459.00 month, 10,500 miles a year, $6,000.00 up front.

        Link Goes To Cadillac ELR Extended Range Electric LC Current Offers Page-

        http://www.cadillac.com/current-offers.html?x-zipcode=48842&x-bodystyle=elr&x-carline=elr&x-year=2014

        Know that the above announced rebates, dealer cash and new incentives are NOT figured into these payments as dealers must opt in to offer, thus does not effect the ad posting.

        Best In Electric Fueled Vehicles Net Cost To Drive, (NCD, Savings-

        Thomas J. Thias

        Sundance Chevrolet Inc.

        517-749-0532

        Twitter.com/AmazingChevVolt

        1. GeorgeS says:

          That’s pretty decent.

  7. pjwood says:

    BMW is short on numbers, and quick to suggest high demand. They are managing their product, as it should be.

    GM puts numbers everywhere, over-building and over-pricing. The commentary practically sets itself up.

  8. Dr. Kenneth Noisewater says:

    $5k?

    Quintuple that, maybe we’ll talk.

  9. kdawg says:

    Does this apply to the Cadillac ELR Saks Fifth Avenue Special Edition? Or did all 100 of those sell?

    1. Andrew says:

      There’s 35 of the Saks cars listed for sale on Cars.com right now, so at most they sold 65. They were all to be delivered in March if pre-ordered.

      I believe the ELR is the only car in history not to sell out its Saks holiday promotion (or Niemans for that matter, usually in a matter of minutes.) Hell, even clueless old GM sold through their 100 overpriced purple Camaro convertibles at Nieman’s in, what, a day or two?

  10. Ocean Railroader says:

    I don’t think a price cut of $5000 dollars is going to save this car’s sales. What they should have done was start selling this car at $50,000. In that now they are in Tesla’s fish tank now at $75,000.

    1. kdawg says:

      My prediction was $62,000 before pricing was announced.. so maybe they will get there.

      The Model S is a different animal than the ELR. It’s a large sedan and doesn’t have a range extender. These things could be good or bad depending on what you want/need.

      But for a $75K car, the Model S interior isn’t nearly as refined as the ELR IMO. I chalk this up to Tesla still learning how to build/design cars. Hopefully they get the kinks worked out by Gen 3.

      1. TomArt says:

        It’s not kinks in the Model S design, it’s just simply the lack of many luxury features now taken for granted at those price points – adaptive cruise control, HUDs, etc.

      2. Tesla Model S says:

        the model s is a premium sedan not a luxury car. And the interior is simple and gorgeous. The main focus is the touchscreen, Model S is pure simplicity which is the best

        1. kdawg says:

          I’d expect more comfortable seats, higher quality materials, a more integrated look, and more standard features. The exterior styling is very bland too, and not sure what’s going on with the nose cone.

          These are all things Tesla can overcome with more iterations.

          1. Chris B says:

            Agreed, although I have no real complaints about the exterior. Sure they could have gone a bit further, but let me list the better looking electrics…there, I’m done. In reality, it looks better than the majority of non-electrics too (although that falls apart a bit when you compare like-priced ICEs). Still noting offensive or controversial like the i3, Leaf, etc.

          2. Ambulator says:

            I find the nose on the ELR much more disconcerting. Are we supposed to look at that giant grill and go “Ooh! Shiny!”?

  11. Just_chris says:

    $10k to the dealer, this will be interesting. $3k isn’t really very much off the price so it will be really interesting to see what happens now.

    Same technology, almost the same asking price but a bonus for the salesman. I am hoping this will have little effect but I suspect it will change everything.

  12. webdbbt says:

    I just did a search in my area: 20 Volts, 27 ELRs. The ELR has the highest MSRP of any Cadillac, $4.5K more than an Escalade. The ELRs in my area are listed for $79K to $80K+. GM marketing does not make any sense–unless they DON’T want to sell Voltec technology.