Escalade does everything, except represent Cadillac's future

[Tragic Bronson]

http://www.autonews.com/article/201...-everything-except-represent-cadillacs-future

DETROIT -- On paper, the hulking Escalade SUV represents everything that Cadillac wants to leave behind about its brand image. It shares underpinnings with Chevys and GMCs. It's not sold in any real volume overseas. Its blinged-out, body-on-frame ride offers anything but nimble performance.

And yet, it's the one vehicle in the showroom that has what Cadillac executives desire most: the brand-name cachet to command top dollar, often from import-leaning customers who might not otherwise set foot in a Cadillac dealership.

Last month, buyers plunked down $85,000 on average for the ESV long wheelbase, 33 grand more than on Cadillac's next-closest nameplate, the CTS.

The Escalade "is the one car we have that import buyers won't even bat an eye to buy," said Keith Harvey, executive manager of Gold Coast Cadillac in Oakhurst, N.J. "They don't have to worry what people will think when they pull up to the country club. It's an Escalade."

The Escalade's success since its spring 2014 redesign has given Cadillac and its dealers a glimpse of what life could be like under the long-term vision laid out by brand chief Johan de Nysschen. Restrained supply and tight inventories. Low incentives. Organic demand driven by desire, rather than the deal.

But the fact that Cadillac's most successful vehicle is also furthest from the brand's core performance mission is a paradox that makes Cadillac executives uneasy. While recently planning a new Escalade advertising campaign, marketing chief Uwe Ellinghaus worried that spotlighting the girthy SUV might undermine all the work that Cadillac has done over the past few years to burnish its performance credentials.

"As much as I want to feature that it is a great-looking and -driving car, and it's a cool Cadillac and we're proud of having it, ... we must avoid the impression that this sets the direction for Cadillac as the brand," Ellinghaus said in a recent interview.

So where does Cadillac take Escalade from here? How can it leverage the unlikeliest of halo vehicles to lift the rest of the lineup?

Undecided for now, executives are treading carefully.

Previous Cadillac chief Bob Ferguson, who left the post in 2014, once floated the idea of broadening the use of the Escalade name to include other vehicles, such as a big crossover. But de Nysschen and Ellinghaus have said they won't do that.

There has been talk of an ultra-premium Escalade model that would be priced higher than $100,000, to compete with the growing list of high-end luxury SUVs from Range Rover, Rolls-Royce, Bentley and others. But Ellinghaus said there are no near-term plans for an uber Escalade.

Stretching the nameplate a bit higher seems to be in the plan, though. De Nysschen, in an interview this summer, cited the possibility of an Escalade Vsport model, a sporty trim that is Cadillac's answer to Audi's S and BMW's M Sport packages.

Longer term, de Nysschen acknowledges some frustration over how to evolve his biggest profit engine.

"How do you balance the desire to bring it into alignment with where we're taking the brand and the equally intense desire not to screw up a good thing?" he wondered aloud last April.

$100,000 gateway?

Cadillac execs believe that the Escalade increasingly can serve as a portal to expose younger buyers to the rest of the growing lineup. That points up another paradox: The SUV is by far the priciest vehicle in Cadillac's lineup but also boasts the brand's youngest buyers, with an average age of 55 for the ESV, according to research firm Strategic Vision.

"That is something that Mercedes would love to see for the S Class," Ellinghaus said with a smile.

Cadillac could use more customers like the one who recently bought an Escalade from Crestview Cadillac in West Covina, Calif., near Los Angeles. The apparently well-off customer, in his late 20s or early 30s, wanted to see how much he could spend on his Escalade to compete with his buddies who drive loaded Mercedes SUVs. He pushed it to just north of $100,000, dealer principal Scott Allen said.

Allen says his inventory always seems to be a few Escalades short, which he sees as a good thing. It gives him confidence that Cadillac can pull off de Nysschen's strategy of building Cadillac's brand image to the point where all of the nameplates have some Escalade swagger in them.

"The Escalade helps to put us in the mindset that people will come in and pay a lot of money for these vehicles," Allen said. "They're expensive cars that aren't going to be on a fire sale. That helps the brand cachet."

Dealers are hopeful that the CT6 large sedan that goes on sale in the first quarter could be the car that finally grabs the attention of that 7-series or S-class owner who walks into a Cadillac showroom to buy an Escalade for his wife.

Harvey at Gold Coast Cadillac in New Jersey said: "I'm going to park the CT6 right next to the Escalade in the showroom, that's for sure."

 

[mikeavelli]

Wow, I read an article like this maybe 10 years ago. I never understood why Caddy went sporty, it isn't working. They should embrace who they are and offer nice American luxury, comfier, larger than the competition with tons of tech. Now mind you, selling a SUV isn't exactly rocket science today, most any SUV sells. Cadillac has done a great job updating the Escalade each generation. Is it an image issue? Many people still make jokes about the rapper/celebrity or soccer mom image it brings instead of the sports car image they want. But I don't think they would ever get that sporty image and those celebrities and soccer moms have bought generation after generation.

I say embrace it and make a Escalade V!!!

 

[Gecko]

Every brand has their Escalade. Lexus has the RX, BMW has the 3 series, Acura has the MDX, etc.

While these vehicles may not be conceived or realized in the main vein of a brand's existence, they go a long way towards financing the other vehicles and projects that do. That's really all that matters.

 

[IS-SV]

^ Yes, Porsche has the Cayenne (and recently added Mecan) along same lines....

 

[mmcartalk]

^ Yes, Porsche has the Cayenne (and recently added Mecan) along same lines....

Macan.

No problem, though.....I make typos, too.

 

[mmcartalk]

Wow, I read an article like this maybe 10 years ago. I never understood why Caddy went sporty, it isn't working. They should embrace who they are and offer nice American luxury, comfier, larger than the competition with tons of tech.

I generally agree, but let's see how the CT6 turns out. It may (?) be just that nice flagship vehicle you're refering to. I'm going to review one as soon as possible, and you'll probably do a write-up of your own, won't you?

Is it an image issue? Many people still make jokes about the rapper/celebrity or soccer mom image it brings instead of the sports car image they want. But I don't think they would ever get that sporty image and those celebrities and soccer moms have bought generation after generation.

I say embrace it and make an Escalade V

Interesting concept, but I'm not sure it would work. Chrysler tried a big (almost full-size) high-performance SUV with the Shelby Dodge Durango, and though obviously not as upscale as an Escalade, had little success with it. Somewhat more successful has been the Jeep Grand Cherokee SRT-8, though, again, it doesn't have the Escalade's bling. Mercedes, of course, does an G-Wagen AMG, but that vehicle dates back to the 1980s, and it probably won't be around much longer.

Then one has to wonder what an Escalade V would cost. Present-model Escalades can START as high as 96K, without options. An Escalade V would probably be priced well into Mercedes AMG territory.[/quote]

 

[IS-SV]

Macan.

No problem, though.....I make typos, too.

Yes, it would be nice if my latest IPad software would have corrected that Macan spelling. Maybe next version will...

 

[mmcartalk]

Its blinged-out, body-on-frame ride offers anything but nimble performance.

True, but I don't see that as a valid argument against its existence. Most of the buyers who get an Escalade (or consider one) are not looking for what one would call "performance". If they were doing so, they would probably not be looking at something that large or heavy.

 

[GoHuskers]

True, but I don't see that as a valid argument against its existence. Most of the buyers who get an Escalade (or consider one) are not looking for what one would call "performance". If they were doing so, they would probably not be looking at something that large or heavy.

True that...Both my brother and sister have the 'Slade and for them those are the Best...(Bling Bling factors)

 

[Bulldog 1]

Wow, I read an article like this maybe 10 years ago. I never understood why Caddy went sporty, it isn't working. They should embrace who they are and offer nice American luxury, comfier, larger than the competition with tons of tech. Now mind you, selling a SUV isn't exactly rocket science today, most any SUV sells. Cadillac has done a great job updating the Escalade each generation. Is it an image issue? Many people still make jokes about the rapper/celebrity or soccer mom image it brings instead of the sports car image they want. But I don't think they would ever get that sporty image and those celebrities and soccer moms have bought generation after generation.

I say embrace it and make a Escalade V!!!

Its the essential problem with General Motors. They are perpetually mired in the quicksand of indecision.
The "new" GM that emerged from bankruptcy never really firmly set upon a clear vision for half its portfolio.
GMC is all trucks all the time. Done.
Chevrolet is and always will be GM's Wal-Mart. Offer everything possible in an automotive lineup at a perceived affordable price point. Except current pricing undermines that perception. The new Camaro SS average mid 40's approaching $50K for a completely loaded model. And somehow the Stingray fits in the middle of it all.
Buick and Cadillac went in different directions and more or less lost their way.
They both went off on a tangent seeking new markets at the expense of their tried and true customer base.
They both continue to bleed market share to this day.
Buick fills the gap between Chevy and Cadillac, but their product mix is a mess n
Cadillac got sucked into the alphabet soup name game and likewise suffered for it.
If a bloated, gas guzzling, overpriced behemoth like the Escalade "brings the boys to the yard" /Kelis, I agree with the LexFather. Embrace it, pocket the obscene amount of money it sells for, and continue to advertise it.
Outside of the price leader ATS that seems to be everywhere, what else are you selling, Cadillac?

 

[mmcartalk]

GMC is all trucks all the time. Done.

That's the one thing about the GM reorganization that I never understood....why they kept a division that did essentially nothing but sell rebadged (or very minimally-redone) Chevy trucks and SUVs. That's basically why Ford got rid of Mercury...for more or less the same reason. Most Mercury products were little more than rebadged Fords.

Buick and Cadillac went in different directions and more or less lost their way.

Buick fills the gap between Chevy and Cadillac, but their product mix is a mess

Cadillac got sucked into the alphabet soup name game and likewise suffered for it.

With the exception of the slow-selling Regal, most recent Buick products have been a success. They have had good sales, have good reliability ratings from Consumer Reports, and have succeeded, to some extent, in lowering the average buyer-age. Cadillac, I'll agree, has not had as much success recently, partly because they have overpriced some of their products, don't offer a true sedan flagship, and have the confusing alphabet soup.

 

[mikeavelli]

Cadillac doesn't seem to understand people want big, brash V-8 Caddy's. Not I-4 Caddy's, not expensive sport sedan caddy's. They need to master the XTS market and apply it all around. THERE IS NOTHING WRONG THERE. Who cares if its not cool if it makes money!?!?!?

The new CT6 seems to be priced right, it has good size but I have no idea why it lacks a V-8.

 

[mmcartalk]

Cadillac doesn't seem to understand people want big, brash V-8 Caddy's. Not I-4 Caddy's, not expensive sport sedan caddy's. They need to master the XTS market and apply it all around. THERE IS NOTHING WRONG THERE. Who cares if its not cool if it makes money!?!?!?

The new CT6 seems to be priced right, it has good size but I have no idea why it lacks a V-8.

The most likely reason (but not necessarily definite) is that, with the Escalade's big V8 and relatively poor mileage, and the CTS-V's high-performance V8, it was simply too difficult to add another one and still meet the upcoming CAFE standards coming up (probably the same, BTW, for Lincoln and the Navigator's V8, why the Continental Concept didn't have a V8). This topic has been discussed in a number of different places, and has a lot of people concerned. In fact, don't be surprised if we start to see even some full-size SUVs dumping V8s for turbo-V6s.

 

[mikeavelli]

The most likely reason (but not necessarily definite) is that, with the Escalade's big V8 and relatively poor mileage, and the CTS-V's high-performance V8, it was simply too difficult to add another one and still meet the upcoming CAFE standards coming up (probably the same, BTW, for Lincoln and the Navigator's V8, why the Continental Concept didn't have a V8). This topic has been discussed in a number of different places, and has a lot of people concerned. In fact, don't be surprised if we start to see even some full-size SUVs dumping V8s for turbo-V6s.

Probably not ideal but they have the LS7 from the base Corvette with about 465hp...

 

[mmcartalk]

Probably not ideal but they have the LS7 from the base Corvette with about 465hp...

I agree with you on the LS7 having spunk, but just imagine the press Cadillac would get if they stuck a push-rod engine in a 2016 sedan-flagship. Heck, they didn't even use a push-rod engine in the former XLR roadster, which WAS Corvette-based, preferring to stick with the Northstar.

 

[IS-SV]

True that...Both my brother and sister have the 'Slade and for them those are the Best...(Bling Bling factors)

Around here black Escalades are common for town car services.

But my family members selected full size Range Rover and Benz G wagon for their bling bling hulking SUV's. Didn't need 3rd row (since the Rover owner also has Suburban).

 

[mmcartalk]

Around here black Escalades are common for town car services.

If you watch the cable-TV show "Bait Car", among other vehicles, police detectives use specially-prepared/rigged Escalades on city streets where car-stealing is common. These escape-resistant vehicles catch petty car-thieves in their tracks. The Escalade is used in some areas because its bling attracts some potential thieves like a magnet...they jump at the chance for a joyride. The show is set and filmed in several different cities, but Compton, CA is one of the most common ones.

But my family members selected full size Range Rover and Benz G wagon for their bling bling hulking SUV's. Didn't need 3rd row (since the Rover owner also has Suburban).

I agree with his (or her?) choice of a Suburban rather than an Escalade. Since he/she already has a high-zoot luxury SUV in the Range Rover, why spend the extra money for an Escalade when a Suburban will give one the same utility, on the same platform, at a substantially lower price? The Cadillac warranty is longer, and perhaps (?) dealer service a little higher, but you also have a big price-difference there. Not only that, but in states/counties (like mine) that have property taxes, you pay an annual tax each year based solely on the assessed value (usually KBB) of your vehicle....there would usually be a significant difference between a Suburban and an Escalade.

I just hope that your family's RR is reliable, though......reliability tends to be a weak point with Land Rover products.

 

[mikeavelli]

I rented a new Suburban for a weekend in Texas and its really well done. I can only imagine the Escalade is better.

A 640hp Escalade V is what they need

 

[mmcartalk]

I rented a new Suburban for a weekend in Texas and its really well done. I can only imagine the Escalade is better.

A 640hp Escalade V is what they need

A Suburban in Texas? That's a classic case of "When in Rome, do as the Romans" LOL.

Escalades are actually fairly common in this area (partly due to its widespread affluence), and seem to be a popular soccer-mom vehicle for well-heeled households. In contrast, the competing Lincoln Navigator seems to have had better days.

You might already be aware of this, but, if not, the Silverado actually has a "Texas" edition from the factory. That's like getting a Suburban with a short bed.