General Motors Company (NYSE:GM) introduced a new design Cadillac Escalade and wants to apply this name to other luxury vehicles having Cadillac brand. Head of Cadillac Bob Ferguson said it is justice to use Escalade as a name for other vehicles brands. Ferguson did not give any deadline to use Escalade brand name to other vehicles.
The Escalade is one of 10 Cadillacs that GM is going to introduce in U.S. at the end of 2015. According to Autodata Corp, The product push has the ATS that raises Cadillac’s sales 29 percent in U.S this year.
The Escalade will have to face threats from smaller car like SUVs and from High brands like Volkswagen AG (VOW) and Rolls-Royce Motor Cars Ltd. The previous model also faces such a threat from smaller cars in 2006.
The Cadillac Escalade 2015 redesign has a wood-trim interior and a sleeker exterior. Ferguson said that in the next year this will increase U.S. sales about 10 percent. According to GM the present Escalade price starts from $63,745, to $90,000. 2015 model’s price has not yet been decided.
Sullivan said that GM estimates margin from Escalade are about 20 percent to 30 percent while on the other the Malibu gives about 4 percent to 6 percent. According to Edmunds the Escalade average transaction price goes up to $76,126 current year from $57,117 in 2003.
According to General Motors Company (NYSE:GM) figures, a richer buyer wishes to buy The Suburban-size Escalade than the Chevrolet Suburban. According to GM the average income of an Escalade owner is $259,060 as compared to Suburban owner $135,000.
According to GM Escalade’s interior is more attractive and seats are more comfortable. The front seats have additional headroom of more than 1.5 inches and additional legroom of 4 inch than the old model.