2014 Cadillac ELR Priced Above Tesla Model S at $76,000 - Page 2
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Community Lounge, Introductions and General Discussion Discussion, 2014 Cadillac ELR Priced Above Tesla Model S at $76,000 in General Discussion; At least it is in the Cadillac fleet to bring down the fleet's average fuel economy for CAFE? And in ...
  1. #16
    70eldo's Avatar
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    At least it is in the Cadillac fleet to bring down the fleet's average fuel economy for CAFE?
    And in reality they don't want and cannot sell the ELR in large numbers?
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  2. #17
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by 70eldo View Post
    At least it is in the Cadillac fleet to bring down the fleet's average fuel economy for CAFE?
    And in reality they don't want and cannot sell the ELR in large numbers?
    DUH. Can't believe I didn't think of this logic before. I would imagine this is a huge factor.
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  3. #18
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by Jesda View Post
    Cadillac is selling expensive cars again. Get used to it.
    Making expensive cars and flooring expensive cars is not selling expensive cars.
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  4. #19
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    The average only works for each unit sold.
    They should give them away and tack the loss onto the lower gas mileage cars they sell.
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  5. #20
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by talismandave View Post
    The average only works for each unit sold.
    They should give them away and tack the loss onto the lower gas mileage cars they sell.
    Is that really how CAFE works? By the average fuel economy of numbers of units they sell? I am really not an expert on CAFE, but I could not find online info that the fleet average is also based on the number of units sold. I could agree that would be fairer, but also practically impossible to track.

  6. #21
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by 70eldo View Post
    Is that really how CAFE works? By the average fuel economy of numbers of units they sell? I am really not an expert on CAFE, but I could not find online info that the fleet average is also based on the number of units sold. I could agree that would be fairer, but also practically impossible to track.
    It has to be by the number they sell (these numbers are reported monthly by the manufacturer).

  7. #22
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Yup and that is why the big 4 door rear drives were ended. Trucks fell under looser standards to not effect industry, auto maker exploited that fact by making trucks luxury cars. Dealers were selling all the full size 4 doors they could get their hands on, but GM couldn't cram enough tiny cars out to offset the CAFE.
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  8. #23
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    ^^^ Very true!

  9. #24
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by talismandave View Post
    Yup and that is why the big 4 door rear drives were ended. Trucks fell under looser standards to not effect industry, auto maker exploited that fact by making trucks luxury cars. Dealers were selling all the full size 4 doors they could get their hands on, but GM couldn't cram enough tiny cars out to offset the CAFE.
    This and there is a larger market and margin in Suburbans and Escalades, the RWD factories were repurposed for that type of production.

  10. #25
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Let's face it the "fancy" trucks took over the market left vacant when the full sized sedans and station wagons were legislated out of existence. While the minivans held sway for a few years, the Yuppy mom didn't want to be identified with soccer moms and so opted for SUV's and crossovers to differentiate from the stigma of the minivan. As Koop said the car makers were very happy with this situation because they could gussy up their far less regulated (safety and MPG) trucks sell them to status conscious mommies who thought because of their size they were "so much safer" than those "tiny cheap cars." Northern Virginia was full of SUV's driven by 5'2" woman for whom it was mandatory to show off how well she had married and secondarily how well her baby was protected.
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  11. #26
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    Quote Originally Posted by Koooop View Post
    This and there is a larger market and margin in Suburbans and Escalades, the RWD factories were repurposed for that type of production.
    In 1987 when I left the business the percentage of mark-up was exactly the same on GMC Suburban as it was on the Olds 98 or Pontiac Bonneville.

    In fact, Ciera/6000/S10 and down were .894, Grand Prix/Cutlass Supreme/full size GMC and up were .869.
    Those were the numbers we multiplied by to get to invoice from sticker price. When we would pull the hard copy it would be within about $20.00 of being right, depending on how optioned up the vehicle was. The true mark-up was slightly higher on accessories than on base price, but it was close.

    I keep hearing in the news stories about the higher mark-up on SUV's too, but they mean vs. the econo cars, not comparably optioned full size.

  12. #27
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    I doubt the retail to wholesale markup is where the real profit lay with the "fancy" trucks, the real profitability lay in the savings of development and production cost to the manufacturer, which I have heard were substantial. The truck based vehicles were exempt from many of the safety related requirements of the passenger cars as well as many of the ever stricter CAFE regulations. Both of which increased the R&D and manufacturing cost of the passenger cars. It is for this reason that the truck based vehicles were a major source of profits for the manufacturers, and like good businessman they too k advantage of this situation to maximize profits.

  13. #28
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    And dealers didn't have to mark down a Denali to get it off the lot back then.

  14. #29
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    When we could still get full size RWD Parisienne's and Delta 88"s the last couple years they were made, we didn't either. Production was so metered and limited that we had a wait list to sell them.

  15. #30
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    Re: 2014 Cadillac ELR Priced Above Tesla Model S at $76,000

    You are in the Bible Belt, on the West Coast you couldn't give the boats away.

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