GM cuts production of sluggish-selling Cadillac XLR halo car
03-02-05, 02:58 PM
#1
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GM cuts production of sluggish-selling Cadillac XLR halo car
http://www.autoweek.com/news.cms?newsId=101909
GM cuts production of sluggish-selling Cadillac XLR halo car
JASON STEIN | Automotive News and ROBERT SHEREFKIN | Automotive News
Posted Date: 3/2/05
Last summer customers waited in line to buy Cadillac's hot XLR. Now dealers are waiting to sell them.
GM has reduced XLR production at its Bowling Green, Ky., plant from 23 vehicles a day to 12, union officials say.
As of Feb. 1, Cadillac had a 200-day supply of the $76,200 vehicle -- about 1,700 units.
Cadillac once hoped to sell 6,000 XLRs annually. But through 18 months, Cadillac has sold just 4,744.
As recently as last August, Cadillac executives wanted to increase production of the XLR -- Cadillac's halo car -- because the division couldn't meet demand. David Leone, chief engineer for the Cadillac Sigma prestige vehicle architecture team, said then that dealer orders were "five times what we can build."
Leone said production would increase before the 2006 model year. But those plans have changed.
Says GM spokesman Stefan Weinmann: "We're very careful to make sure that on a brand like Cadillac, the inventory levels are more closely managed than some other brands in order to maintain its cachet." GM has never offered sales incentives on the XLR and has no plans to do so.
Eldon Renaud, president of UAW Local 2164, says there will be no layoffs at the Bowling Green plant, which employs 1,015 workers. He said GM trimmed production Feb. 8. Output of the Chevrolet Corvette, built at the same plant, will remain unchanged.
The cutback could be painful to some suppliers.
Meridian Automotive Systems Inc. of Dearborn, Mich., will build just half of the molded door panels it expected for the XLR. Idle capacity is expensive, but Meridian cannot use that equipment for other customers because at some point GM may resume higher XLR production.
Production slowdowns also make it tough for suppliers to recoup their costs.
In December 1999, HP Pelzer Automotive Systems Group of Troy, Mich., won the contract to supply acoustic and flooring material for the Chevrolet Malibu and Pontiac Grand AM -- on the condition that it also take on the much smaller XLR and Corvette programs.
"It's a pain in the neck," says an industry executive familiar with that contract. "The tools you put in place cost more than the parts you sell" for the smaller programs, the executive said.
Adds the CEO of one XLR supplier, "We're all in the doldrums."
Jacques Moore, owner of Moore Cadillac in Richmond, Va., admits XLR demand has slowed, but adds: "It's important to remember it's a seasonal product."
Moore says an oversupply of XLRs is not good.
"The last thing we want to do is have a couple of dealers with three, four or five on the ground and then they need to have a sale," says Moore. "That would be the wrong idea."
GM cuts production of sluggish-selling Cadillac XLR halo car
JASON STEIN | Automotive News and ROBERT SHEREFKIN | Automotive News
Posted Date: 3/2/05
Last summer customers waited in line to buy Cadillac's hot XLR. Now dealers are waiting to sell them.
GM has reduced XLR production at its Bowling Green, Ky., plant from 23 vehicles a day to 12, union officials say.
As of Feb. 1, Cadillac had a 200-day supply of the $76,200 vehicle -- about 1,700 units.
Cadillac once hoped to sell 6,000 XLRs annually. But through 18 months, Cadillac has sold just 4,744.
As recently as last August, Cadillac executives wanted to increase production of the XLR -- Cadillac's halo car -- because the division couldn't meet demand. David Leone, chief engineer for the Cadillac Sigma prestige vehicle architecture team, said then that dealer orders were "five times what we can build."
Leone said production would increase before the 2006 model year. But those plans have changed.
Says GM spokesman Stefan Weinmann: "We're very careful to make sure that on a brand like Cadillac, the inventory levels are more closely managed than some other brands in order to maintain its cachet." GM has never offered sales incentives on the XLR and has no plans to do so.
Eldon Renaud, president of UAW Local 2164, says there will be no layoffs at the Bowling Green plant, which employs 1,015 workers. He said GM trimmed production Feb. 8. Output of the Chevrolet Corvette, built at the same plant, will remain unchanged.
The cutback could be painful to some suppliers.
Meridian Automotive Systems Inc. of Dearborn, Mich., will build just half of the molded door panels it expected for the XLR. Idle capacity is expensive, but Meridian cannot use that equipment for other customers because at some point GM may resume higher XLR production.
Production slowdowns also make it tough for suppliers to recoup their costs.
In December 1999, HP Pelzer Automotive Systems Group of Troy, Mich., won the contract to supply acoustic and flooring material for the Chevrolet Malibu and Pontiac Grand AM -- on the condition that it also take on the much smaller XLR and Corvette programs.
"It's a pain in the neck," says an industry executive familiar with that contract. "The tools you put in place cost more than the parts you sell" for the smaller programs, the executive said.
Adds the CEO of one XLR supplier, "We're all in the doldrums."
Jacques Moore, owner of Moore Cadillac in Richmond, Va., admits XLR demand has slowed, but adds: "It's important to remember it's a seasonal product."
Moore says an oversupply of XLRs is not good.
"The last thing we want to do is have a couple of dealers with three, four or five on the ground and then they need to have a sale," says Moore. "That would be the wrong idea."
03-02-05, 03:18 PM
#2
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They either...
1. Still dont know how to successfully market and sell a Caddy Convertible in modern day time
2. Most people dont buy Convertibles in the winter
3. GM is just royally messing up. They should have tried to catch up to demand when they had the chance. Now they cant sell a damn thing.
I'm hoping its number 2. However, Caddy sales have been down for the first 2 months of this year. So maybe this was expected. Didnt they stop production of the CTS and SRX not to long ago because it wasnt selling??
To me the new Art & Design theme seems to get old pretty fast. It doesnt have that instant classic look like certain Lexuses, MB, and old school BMW's have.. Or shall I say outdated looks. I dont know about you, but I'm already tired of the new look of Caddies. Especially the CTS. My Dad and I used to like this car very much, now it gets more unattractive everytime I see it.
1. Still dont know how to successfully market and sell a Caddy Convertible in modern day time
2. Most people dont buy Convertibles in the winter
3. GM is just royally messing up. They should have tried to catch up to demand when they had the chance. Now they cant sell a damn thing.
I'm hoping its number 2. However, Caddy sales have been down for the first 2 months of this year. So maybe this was expected. Didnt they stop production of the CTS and SRX not to long ago because it wasnt selling??
To me the new Art & Design theme seems to get old pretty fast. It doesnt have that instant classic look like certain Lexuses, MB, and old school BMW's have.. Or shall I say outdated looks. I dont know about you, but I'm already tired of the new look of Caddies. Especially the CTS. My Dad and I used to like this car very much, now it gets more unattractive everytime I see it.
03-02-05, 03:37 PM
#3
I am not surprised. Here in S. Fl where we see high end cars all the time....there should be lots of these cars around here. I see about one bi-weekly. I see more Ferrari's than that. Lambo's too. I'd bet they sell a boatload of em for $50-60K. The first time I saw the price I thought immediately, that's too high for an unproven Caddy. Caddy's have very poor history of reliability problems. I think most would buy a SL500.....at least you get the prestegious name for your troubles for $80K.
Also, I still think Cadillac is associated with older people and the XLR may not suit the older crowd. Young people are buying the SUV but not the cars. When I hear Cadillac I think of my granddad.
Also, I still think Cadillac is associated with older people and the XLR may not suit the older crowd. Young people are buying the SUV but not the cars. When I hear Cadillac I think of my granddad.
Last edited by Ice350; 03-02-05 at 04:17 PM.
03-02-05, 05:11 PM
#5
Originally Posted by reggiek
... I think most would buy a SL500.....at least you get the prestegious name for your troubles for $80K.
Also, I still think Cadillac is associated with older people and the XLR may not suit the older crowd. Young people are buying the SUV but not the cars. When I hear Cadillac I think of my granddad.
Also, I still think Cadillac is associated with older people and the XLR may not suit the older crowd. Young people are buying the SUV but not the cars. When I hear Cadillac I think of my granddad.
For that pice range for a luxury convertible/ roadster, there are many other and better? choices out there: SL, Porsche, 6-series....
I have not seen one young person (under 60
) in this car 
Edit: Here, you DON'T get what you paid for
Last edited by GS3Tek; 03-02-05 at 06:16 PM.
03-02-05, 05:22 PM
#6
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I remember test driving the XLR during the Lexus test drive event. They paired it up against a sc430.
The first thing I noticed when I sat inside was the awfully cheap plastic interior, for 80k car, I would have expected more.
Then when I drove it, it handled horribly, acceleration was sluggish, but worst of all, the brakes were horrible for a car of that size and weight.
I was wondering why people would pay 80k for this car, I figured sooner or later, the hype would die down and people will realize that they can get a much better car for the money.
The first thing I noticed when I sat inside was the awfully cheap plastic interior, for 80k car, I would have expected more.
Then when I drove it, it handled horribly, acceleration was sluggish, but worst of all, the brakes were horrible for a car of that size and weight.
I was wondering why people would pay 80k for this car, I figured sooner or later, the hype would die down and people will realize that they can get a much better car for the money.
03-02-05, 05:43 PM
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Originally Posted by Thomas C
I remember test driving the XLR during the Lexus test drive event. They paired it up against a sc430.
The first thing I noticed when I sat inside was the awfully cheap plastic interior, for 80k car, I would have expected more.
The first thing I noticed when I sat inside was the awfully cheap plastic interior, for 80k car, I would have expected more.
That's Cadillac's problem more than anything. Cadillac the interior is horrible. I remember back in 2000 when I was looking to buy my wife a luxury SUV. I wanted to test drive the Escalade but as soon as I seen the interior I immediately closed the door. The salesman asked me what was wrong and I told him that I refused to pay $60,000 for a vehicle full of plastic. The next week I bought the LX470.
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03-02-05, 06:13 PM
#8
Lexus Fanatic
I just read an article in 'CAR" magazine which critisized the cheap and terrible design of the Caddy XLR interior and could'nt believe the car was priced anywhere near $70,000. There are cars that cost half that much with nicer higher quality interiors like an Acura TL, Lexus ES330, Audi tt, a4 etc. I believe the XLR is a little quicker then a base SL but nowhere near as desirable. I saw one in Dewey Beach, DE and when I looked inside I could not believe the uninspired design and cheap plastic.
03-02-05, 07:37 PM
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the interior of my 99 STS was really nice looking but it just didnt have the quality to it. It looked very nice, but for a $58,000 car it shouldnt have its main part of the dash board popping up, its just put together cheaply. The new sts however seems to have much better quality, I have yet to get in it and feel for myself yet but I'd like to. Another car to check out is that buick lacrosse, the interior is a blatant copy of the es330s but it actually is much more solid than any buick i've ever seen. Not a big fan of the car but the interior suprised me although still not up to par with bmw, lexus, and audi. Probably never will be , but at least they are trying.
03-02-05, 08:34 PM
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They had the same problem with the SRX, they initially produced like the bulk of the inventory with the V8 configuration but that did not fly price wise cause it was like mid 50's-60's and the V6 version ran just over 40k.
Here's a stupid question, reviews on the car have been alright, overweight, sluggish, blah blah blah, I thought the car was based or a rebadged Corvette.
The only 1 I've ever seen was driven by an old woman with a Silver wig, she came out of a parking lot, look right turn left
It's the price, do you think the V-Series cars will eventually get effected after the initial popularity dies down
Here's a stupid question, reviews on the car have been alright, overweight, sluggish, blah blah blah, I thought the car was based or a rebadged Corvette.
The only 1 I've ever seen was driven by an old woman with a Silver wig, she came out of a parking lot, look right turn left
It's the price, do you think the V-Series cars will eventually get effected after the initial popularity dies down
03-03-05, 04:32 AM
#12
Lexus Fanatic
Once again we get back to the old problem of auto stereotypes. I note the several comments about Cadillacs being "Grampa" cars. This is nonsense...there is no reason at all why younger people cannot buy Cadillacs ....even non-V-class ones....as long as they can afford them, of course. True, Caddy DOES have quality and reliability problems, but so do a lot of so-called youth-oriented cars.
The XLR's problem is that it is simply overpriced......IMO it simply is not worth what it costs, even with the folding trick top. This is also true of some other 2-seaters and coupes in this price range, including the Jaguar XK-series, and the Mercedes SL. Note that Lexus sells the V8-powered SC430 for some 15K less.....and it is a MUCH higher quality car ( trust me ) than any of these others. Besides, curtailing XLR production at the Bowling Green plant will free up more plant capacity and resources for Corvette production....there are currently waiting lines and markups at some dealerships for C6 Corvettes, and only time will tell what the demand for the new Z06 will be.
The XLR's problem is that it is simply overpriced......IMO it simply is not worth what it costs, even with the folding trick top. This is also true of some other 2-seaters and coupes in this price range, including the Jaguar XK-series, and the Mercedes SL. Note that Lexus sells the V8-powered SC430 for some 15K less.....and it is a MUCH higher quality car ( trust me ) than any of these others. Besides, curtailing XLR production at the Bowling Green plant will free up more plant capacity and resources for Corvette production....there are currently waiting lines and markups at some dealerships for C6 Corvettes, and only time will tell what the demand for the new Z06 will be.
03-03-05, 06:45 AM
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Z06 has no problem to sell, because it does what it was meant to do, its rediculously fast for a production car at that price, people buy a Z06 aren't going to care about luxury and such. But a XLR suppose to be one of those hush hush luxury convertible.
I really like the XLR's exterior, but just too bad about the price & interior quality.
I really like the XLR's exterior, but just too bad about the price & interior quality.
03-03-05, 08:27 AM
#15
Lexus Fanatic
Well, now that the XLR is being dropped it will be easier for you to get one.
Just don't block me in the left lane when I want to pass you in a Kia Rio.
Just don't block me in the left lane when I want to pass you in a Kia Rio.
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