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Consumer Reports finds little justification for the Cadillac ELR's high price

Consumer Reports has laid its hands on the 2015 Cadillac ELR plug-in hybrid and spent ten days testing out the high-end hybrid vehicle. The publication says that after ten days of driving the car, it's hard to categorize.
 
While the Chevrolet Volt costs around $34,000 before a $7,500 federal tax credit, the Cadillac ELR with the same drivetrain starts at $75,000. Consumer Reports says that the massive sticker price for the ELR doesn’t add up.
 
The publication says that the rear seats in the ELR are much tighter than the rear seats in the Volt, which were already nearly too small for adults. Consumer Reports does say that the ELR is much nicer to drive than the Volt, and that you can barely hear the gas engine when it turns on.

 
The interior is also "sumptuous" and beautifully finished according to the publication. In the end, Consumer Reports felt that the car was "rather ordinary" and lacks the "zip" you expect in a high-end coupe. The publication says they would rather be rolling around in the roomier and better performing Tesla Model S, granted the Model S can be much more expensive than the ELR and is hindered by the range of its battery pack and reliance on recharging.
 
The ELR can go for 35 miles thanks to its 16.5 kWh battery and has an 84hp gas engine to assist on longer trips.
 
GM wants people to compare the Cadillac ELR to the BMW 6-Series Grand Coupe that carries a price of $88,000.

Source: Consumer Reports



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Newsflash
By Motoman on 12/11/2013 12:03:53 PM , Rating: 4
People in the market for a $75k passenger car aren't all that interested in the cost-effectiveness of their purchase.




RE: Newsflash
By Mint on 12/11/2013 12:31:50 PM , Rating: 3
The ELR isn't about cost effectiveness. This is just GM trying to milk a niche for whatever they can while they're one of the only players. I wouldn't be surprised if they have 40% gross margins on the ELR.

There are some people that want a luxurious interior, a smooth and quiet EV ride for most miles, and zero range anxiety. Maybe some of them care about foreign oil, a domestic brand, and/or emissions. It looks awesome, too.

If you think about it, that's really not any more absurd than spending $200k for 0.2s faster 0-60 times, engine sounds, etc.

But there's really not that many people that fit into this niche, which is why they're projecting 1/10th the sales of Tesla. I guess GM figures 3000 * $30k profit is better than 10000 * $5k profit.


RE: Newsflash
By grooves21 on 12/18/2013 3:06:29 AM , Rating: 2
But, the people that fall in that category are going to buy a much better performing Tesla, not an upscaled Volt at twice the price.

At $50k-ish... it might make sense. At $75K, these are going to be lucky to reach 5-digit sales figures.


RE: Newsflash
By Spuke on 12/11/2013 12:40:06 PM , Rating: 2
quote:
People in the market for a $75k passenger car aren't all that interested in the cost-effectiveness of their purchase.
Yes they are actually. How do you think wealthy get/keep their wealth? BTW, I suggest everyone read Millionaire Next Door. The vast majority (and I mean WELL over 90%) of America's wealthy DON'T drive Veyron's and live in $20m mansions. Hint: the average price of a home of the rich is $750k.


RE: Newsflash
By Motoman on 12/11/2013 1:26:32 PM , Rating: 2
Nope.

If you were concerned with the cost-effectiveness of your car purchase, you wouldn't be looking at $75k cars...period.

Indeed, this is how "rich" people get rich...well, one way anyway...is being wise with their money.

Buying a $75k car is never a "wise" use of money, because a vastly cheaper car will perform that function every bit as well.

People will, of course, buy this car...and other $75k cars. They buy it for cache. For looks. For a "luxurious interior." Etc. The one thing they won't be buying for, though, is cost-effectiveness.


RE: Newsflash
By Spuke on 12/11/2013 1:30:36 PM , Rating: 1
quote:
The one thing they won't be buying for, though, is cost-effectiveness.
I didn't say THIS car was cost effective. I DID say rich people DO figure in cost effectiveness when buying cars. MOST rich people are not "ballin out of control". Turn off the friggin TV.


RE: Newsflash
By Motoman on 12/11/2013 2:00:40 PM , Rating: 2
I think we're in agreement. But I'm not sure.

I would assert that even if you were a zillionaire, you couldn't possibly buy a $75k car and say that you made a cost-effective purchase. Cost-effectiveness is getting the most bang for your buck, to paraphrase a bit.

The $34k Volt (before tax subsidy) could fairly easily be described as cost-effective - at least if you presume the market requirement is a hybrid passenger vehicle. The "bang for your buck" is just about 100% more on the Volt than on the Cadillac.

The same could be said about the Cavalier vs. the Cimmaron - although it needn't necessarily be the same base model. A Hyndai Elantra is vastly more cost-effective than a Corvette too.

At the end of the day, cost-effectiveness disappears once you get past the first few models in any given manufacturer's lineup. After that, you're no longer concerned with cost-effectiveness - regardless of how much disposable money you have.


RE: Newsflash
By Arkive on 12/11/2013 3:58:52 PM , Rating: 2
Lol, not sure why you're so offended by his response. If this car wasn't cost-effective in your mind why even make the comparison? You're both right to a degree. I think the truth is somewhere in the middle.


RE: Newsflash
By Murloc on 12/11/2013 1:54:57 PM , Rating: 2
well-off people accumulated wealth because they prioritize their spending correctly.

I don't think this car does that, but maybe some rich people hate traveling and will spend money on this instead.


RE: Newsflash
By Motoman on 12/11/2013 2:03:05 PM , Rating: 2
quote:
well-off people accumulated wealth because they prioritize their spending correctly.


Yes.

quote:
I don't think this car does that, but maybe some rich people hate traveling and will spend money on this instead.


Well...no. You can't declare purchasing this Cadillac to be cost-effective if you did it instead of taking a vacation to Maccu Pichu. Because spending $75k on the car is, in and of itself, not a cost-effective transaction. Doesn't matter if you "saved" money by not buying something else. That might justify getting it into whatever budget you're working with - but that doesn't magically make it cost-effective.


RE: Newsflash
By rountad on 12/12/2013 1:35:11 PM , Rating: 2
You can't possibly know that.

Maybe the person is a real estate agent for a wealthy area and clients just feel more at home or affinity with the agent who drives a premium car.

You kind of seem to be slipping into a judgmental, I know best, phase lately with some of your tirades :-)


RE: Newsflash
By Motoman on 12/12/2013 2:18:03 PM , Rating: 2
quote:
Maybe the person is a real estate agent for a wealthy area and clients just feel more at home or affinity with the agent who drives a premium car.


That doesn't magically make the car cost-effective. What you're pointing out is that the Cadillac may appeal more to people who aren't all that concerned with cost-effectiveness. Like the people shopping for real estate in a wealty area.

You're fundamentally not addressing the issue. There's not a judgement call being made here...either something is cost-effective, or it isn't. That fact doesn't change with whether or not a real estate agent thinks she should buy a non-cost-effective car in order to cater to the Stepford Wives types.


RE: Newsflash
By rountad on 12/12/2013 2:37:11 PM , Rating: 2
No, I think that I am.

Good value and cost-effectiveness do not equal cheap. It means that it delivers what you need and want at a good price (and maybe the best price when ALL costs and benefits are considered).

If something costs twice as much, but lasts three times as long and you want to use all of that extra lifespan, then it's a better value and more cost-effective.

In the same way, if the person's business is adversely affected by the wrong choice of car, then the right choice of car might be completely logical and cost-effective.


RE: Newsflash
By rountad on 12/12/2013 2:39:55 PM , Rating: 2
If the agent makes twice as much money based on her clothes and car, then spending that extra money might very well have been cost effective.


RE: Newsflash
By Flunk on 12/11/2013 12:57:06 PM , Rating: 1
Sure they are, compare what you can get for that price... This looks like a pretty bad buy. You can get a BMW 4 series (which is even slightly larger inside) starting at $40,000. Comparing to the enormous high-end 6 series is laughable.

GMs issues with this car are: Cadillac is not seen as a premium brand by most people, performance is not great, you can buy nearly the same car for half the price (Volt), Cadillac sells the CTS Coupe for about half the price, even BMW and Mercedes equivalent coupes are less money.

All in, this car is a real turkey.


RE: Newsflash
By M'n'M on 12/11/2013 1:38:33 PM , Rating: 3
quote:
Consumer Reports says that the massive sticker price for the ELR doesn’t add up.

In next months incisive issue CR exposes that downtown Manhattan condos are expensive !

Don't Miss It !!!!


RE: Newsflash
By stm1185 on 12/11/2013 3:33:22 PM , Rating: 2
Why are they making these instead of paying us back that $10,000,000,000 we lost bailing them out after they made crap for 3 decades?


RE: Newsflash
By Icaarus on 12/11/2013 5:49:46 PM , Rating: 2
Redundancy department of redundancy
By chµck on 12/11/2013 12:11:51 PM , Rating: 2
Second to last paragraph
quote:
to assist on longer trips long trips.




RE: Redundancy department of redundancy
By Brandon Hill (blog) on 12/11/2013 12:24:51 PM , Rating: 5
What do you mean do you mean?

Thank you thank you :)


By espaghetti on 12/12/2013 1:47:45 AM , Rating: 2
If only we mere commentators had an edit feature!!


By Dr. Kenneth Noisewater on 12/11/2013 8:43:42 PM , Rating: 2
Did you go get the papers get the papers?


By stm1185 on 12/11/2013 10:19:17 PM , Rating: 2
I like to move it move it, to get the papers.


You guys are missing the point...
By SAN-Man on 12/11/2013 8:10:16 PM , Rating: 2
Caddy wants people talking about the brand, and they are. The ELR is getting people talking about the brand, and in the same sentence as the number 75,000. It doesn't matter if it's worth it or not. We're still talking about it.

Caddy is also trying to take the brand up a few notches in price. The "Art and Science" years have been good for Caddy, brought them back from the dead. Now, they want to be considered with BMW, Merc, Audi - and the truth is they deserve to be, their cars are as good and some times better.

Looks at the CTS. The outgoing car (2013) has a base MSRP of $39,095. For 2014, the redesigned model has a base MSRP of $45,100 that base model can be optioned well north of $60,000.00

Caddy marketing the last few years has worked. The ELR isn't worth $75K, of course not. Caddy knows it. It's all marketing folks, and you're (Daily Tech and the general public) eating it up.




RE: You guys are missing the point...
By Dr. Kenneth Noisewater on 12/11/2013 8:45:26 PM , Rating: 2
quote:
Caddy wants people talking about the brand, and they are. The ELR is getting people talking about the brand, and in the same sentence as the number 75,000. It doesn't matter if it's worth it or not. We're still talking about it.


I suppose, though most of that talk is mainly: "Man, can you believe GM wants $75k for that Cadillac ELR? That's at least $20k too much!"


By SAN-Man on 12/11/2013 10:17:18 PM , Rating: 2
Yeah, I agree with you but think about this - the fact that we think $55K is reasonable for essentially a Volt with two fewer doors, leather seats and a Caddy badge means the marketing has worked. :)

This type of thinking means that Caddy has really moved into "propeller" territory where it's selling an idea more than a car.


RE: You guys are missing the point...
By Reclaimer77 on 12/12/2013 1:24:08 PM , Rating: 2
A lot of "talk" happened for the Volt too. Hell they had the leader of the free world flapping his goddamn jaws about it every day.

It's still regarded a failure.

In America talk is still cheap.


By SAN-Man on 12/19/2013 5:22:14 PM , Rating: 2
It's regarded by you as a failure. No offence but I don't even know who you are...


yow
By Jeffk464 on 12/11/2013 12:03:37 PM , Rating: 2
It might be tempting at $45,000




DUH
By Dr of crap on 12/11/2013 12:54:46 PM , Rating: 2
Its a Caddy! You can't sell a Caddy at a Volt price, come on! And think of the profit margin!




By Captain Awesome on 12/11/2013 1:38:10 PM , Rating: 2
It looks better than the Volt at least...




Typo?
By waykizool on 12/11/2013 1:40:00 PM , Rating: 2
quote:
The ELR can go for 35 miles thanks to its 16.5 kWh battery and has an 84hp gas engine to assist on longer trips.


I hope it goes for more than 35 miles....or are we talking about a single charge ;)




GM gets it wrong again...
By OoklaTheMok on 12/11/2013 4:45:46 PM , Rating: 2
In my opinion, only Tesla has got the electric/hybrid business model well defined, by starting at the high-end and is working the technology down to lower price ranges.

GM could have done this as well when they were designing the Volt. They determined that some technologies/features would have been too expensive for a $30k price tag. What they should have done at that time, is to make the best hybrid they could reasonably make and branded it as a Cadillac. It would have seen lower volumes, but they could have then worked to mature the technology and ultimately produce it more cost effectively.

Taking this backwards approach is just like the Lexus CT 200h, which is just an uninspiring Prius with Lexus amenities. It doesn't really gain anything at all other than trying to monetize an existing platform.

Again.. snatching defeat from the jaws of victory...




overpriced
By trajan24 on 12/15/2013 3:51:58 AM , Rating: 2
For those dollars you could get something much better and more reliable.




But..it's a Cataract...
By DukeN on 12/11/2013 2:48:03 PM , Rating: 1
Sorry, would rather have a Camry, Avalon, Accord, etc.

Maybe I'll re-consider once I'm 85..




JOBS REQUIRED........
By debracra435 on 12/11/13, Rating: 0
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser














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