In part due to its Chevrolet roots, the Cadillac ELR is now selling for up to 35 percent less than its original $76,000 price tag.
Out of all of the electric and plug-in hybrid vehicles selling below MSRP due to lower fuel prices at the pump, the current ELR has seen the largest discount from the original sticker, Bloomberg reports. Nearly 2,000 units have left the showroom over the past 18 months, with some dealerships going as low as $50,000 to make room for a model that will actually leave in a few days (i.e. the Escalade).
Cadillac originally established the high price of admission for its Tesla fighter because of the standard features it offered, despite its PHEV technology coming from the $35,000 Chevrolet Volt. Thus, the brand “overestimated” its customers would discover its competitors “were naked at that price,” according to marketing boss Uwe Ellinghaus.
Another justification was if the ELR were priced closely above the Volt, PHEV shoppers would have gone for the latter instead. Branding also played a role in the pricing, intending to signal to consumers the ELR was a Cadillac through and through, from its badging and design, to the olive wood trim and 10-speaker Bose audio system.
Though these failures have guaranteed the PHEV will not see a second generation, the 2016 edition will at least begin the model’s ride into the sunset on a more even keel. Pricing is set to begin at $66,000 before federal incentives, while power will increase to 233 horsepower and 373 lb-ft of torque from the current edition’s 217 horses and 295 lb-ft of torque.
[Photo credit: Cadillac]
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