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Cadillac Escalade gets $10,000 discount to ward off Navigator

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Old 04-16-18, 04:59 PM
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Default Cadillac Escalade gets $10,000 discount to ward off Navigator

War of the luxury behemoth SUVs

Cadillac is once again defending its full-size luxury Escalade SUV from assault by the hot-selling Lincoln Navigator, offering $10,000 discounts to some current customers to keep them from switching brands.

The discount, reported by Bloomberg, applies to lessees of 2016 model-year Escalades, with a $7,500 discount offered to owners, through May 31.

It's at least the second time GM has resorted to incentives to keep customers in its cash-cow luxury
SUV since Ford launched the all-new 2018 Navigator late last year. In November, Cadillac offered a $5,000 discount on the purchase or lease of the Escalade to any buyer who traded in a 1999 or newer Lincoln model.

Analysts have estimated that the Escalade produces nearly $1 billion in yearly profit for GM.

Escalade sales were up 14 percent in March and 8 percent during the first quarter, with retail sales up by double-digit percentages in both periods, higher transaction prices and market share expected to climb by 2 percent year-to-date, according to GM. That's impressive for a vehicle that has received only minor updates since the current generation went on sale for 2015.

While it still trails the Escalade in sales, the Navigator has been riding a 63 percent increase in deliveries this year, with new models lasting on dealer lots an average of only 10 days and average prices ballooning to $82,500, according to Bloomberg. Ford earlier this year announced it was pouring $25 million into its Kentucky Truck Plant in Louisville to boost production of the Navigator and Ford Expedition.
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Old 04-16-18, 05:12 PM
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mmarshall
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Most Navigator buyers are probably scooping them up simply because it is simply a better vehicle, in several areas, than the Escalade. That's not likely to change just because the bean-counters at GM decided to try and bribe people into showrooms. IMO, GM would be wiser to take that 10K they would lose on each potential Escalade sale and put the money into improvements for the vehicle instead....that way, the Escalade would sell on its own merits, not because of bribes. For one, they could start by dumping the CUE system and using a better infotainment package, like Buick's Intellink which is already a GM in-house system.

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Old 04-16-18, 10:39 PM
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Originally Posted by Hoovey2411
Analysts have estimated that the Escalade produces nearly $1 billion in yearly profit for GM.
considering my friend works on these and i hear what he says about them, i can understand why. they're piles of cheaply made crap!
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Old 04-17-18, 04:41 PM
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mmarshall
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Originally Posted by Stroock639
considering my friend works on these and i hear what he says about them, i can understand why. they're piles of cheaply made crap!

I wouldn't go so far as to call them crap.....they are actually quite a nice luxury SUV inside, and their truck-based/body-on-frame construction and live rear axle allows heavy payloads to be carried and towed. But they have had some engineering and assembly-line goofs, the latest one being a drumming-noise problem from a defective roof design/insulation. And Consumer Reports gives them a worse-than-average reliability rating.
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Old 04-17-18, 08:12 PM
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These SUVs are cash cows. Even with compact SUVs, it's easy profit, and car makers are laughing all the way to the bank.
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Old 04-18-18, 12:53 AM
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Originally Posted by mmarshall
I wouldn't go so far as to call them crap.....they are actually quite a nice luxury SUV inside, and their truck-based/body-on-frame construction and live rear axle allows heavy payloads to be carried and towed. But they have had some engineering and assembly-line goofs, the latest one being a drumming-noise problem from a defective roof design/insulation. And Consumer Reports gives them a worse-than-average reliability rating.
i never said they weren't nice, the interior is certainly a nice place to be. i'm just saying build quality is very poor. it's not uncommon for me to hear him say how an engine needed to be rebuilt after like only 40,000 miles or something. much more common is various electricals / screens on the inside to have issues and many recall jobs. once he was test driving a buick enclave (i think it was an enclave) after doing a repair to something and the throttle got stuck wide open as he's out on a major road! even still as i type this i'm laughing about that... just know i would never wish such a fate on someone, but considering the circumstances of this particular case it's actually quite funny. one of those you had to be there kinda things i guess... anyway my point was just that GM makes quite a bit of profit on each since they apparently cut so many corners during assembly and manufacturing processes.
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Old 04-18-18, 05:33 AM
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Did they ever fix the wind buffet sound, I stopped following and assumed the answer was no. It always killed me to see a cable dangling off that live axle in the rear left, like GM wanted to leave a hint of 1978 on the 100k car. The only weakness I have even heard about the new Navigator is the brakes, and maybe V6 for purists, otherwise the interior is top notch.

Also, don't ask me how I know, but the alternator output in 2011 was < that of a crossover, from 2008. By 10A-25A. Talk about dated.

edit: 10-25

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Old 04-18-18, 05:36 AM
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Originally Posted by Stroock639
i never said they weren't nice, the interior is certainly a nice place to be. i'm just saying build quality is very poor. it's not uncommon for me to hear him say how an engine needed to be rebuilt after like only 40,000 miles or something. much more common is various electricals / screens on the inside to have issues and many recall jobs. once he was test driving a buick enclave (i think it was an enclave) after doing a repair to something and the throttle got stuck wide open as he's out on a major road! even still as i type this i'm laughing about that... just know i would never wish such a fate on someone, but considering the circumstances of this particular case it's actually quite funny. one of those you had to be there kinda things i guess... anyway my point was just that GM makes quite a bit of profit on each since they apparently cut so many corners during assembly and manufacturing processes.
GM and Ford both make a ton of profit on every full-size truck-based vehicle they sell. The Escalade is certainly no exception. That's probably how they can discount it 10K and still probably not lose much, if any money.
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Old 04-18-18, 05:47 AM
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Originally Posted by mmarshall
GM and Ford both make a ton of profit on every full-size truck-based vehicle they sell. The Escalade is certainly no exception. That's probably how they can discount it 10K and still probably not lose much, if any money.
Is 10k a lot? My dad got 8k off a brand new Envision, which had a list just over 39k. Proportionally the discount should be almost 25k. GM list pricing has always been uber inflated, so they can do the you pay what we pay as employee thing, and still a person would say huh, you pay that much?
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Old 04-18-18, 10:24 AM
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Cadillac Escalade gets $10,000 discount to ward off Navigator
A big part of it, is that Escalade and it's Tahoe/Suburban/Yukon/YukonXL siblings are dated now. I don't blame people who have switched thus far though, the new Navigator is really nice. As is the Aviator. Cadillac will bounce back though come redesign, then it will be Lincoln's turn to up the ante.
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