Cadillac’s Struggling ELR Wins Some Financial Support From Up Top
Despite being launched over five months ago now, sales of Cadillac’s (NYSE:GM) ELR plug-in hybrid have been moving along at a snails’ pace. So slow, in fact, that GM is now incentivizing dealers with $5,000 just to get potential buyers to park it in the front seat, even if temporarily.
It’s known internally as the Demonstrator Allowance Program, and it is designed as a tactical move to help register more test drives, Cadillac spokesperson David Caldwell told Automotive News. He also said it probably will take awhile for widespread consumer awareness about the ELR. “We want to do it because of the newness of the ELR,” Caldwell said. “It’s a different brand.”
Some might say that the ELR looks like a million bucks, but in reality, its MSRP of $75,000 has been hard to swallow for consumers. Despite its luxurious interior and added horsepower, many can’t get by the fact that General Motors is asking twice the price of a Chevy Volt despite the ELR being what is essentially a really nice Chevy Volt. With two fewer doors. Last week, The Wall Street Journal reported that Cadillac was offering $3,000 towards purchase or lease of the vehicle.
GM had 1,700 ELR coupe models in stock at the end of April. According to the Automotive News Data Center, that’s a 725-day supply of vehicles — a colossally high number, exacerbated by the fact that only about half of Cadillac’s dealer network is carrying the car.