GM Prices Cadillac Escalade Hybrid at $71,685. Yes Way.
GM Car Czar Bob Lutz' infamous pre-Katrina remark, " Rich people don't care about gas," has once again come back to haunt him. This time it arrives in the form of a $71,685 two-mode hybrid; a rebadged Chevy Suburban SUV called the Cadillac Escalade Hybrid. Here's the problem: Bob's remark implied that rich people are environmentally unconscious (and, by extension GM). If that's true– and I'm not saying it isn't– why would anyone pay an extra $14,795 (over the base 'Slade) or $3600 (for the two-mode propulsion system's premium) to buy a gas – electric version of the Escalade? Is it because they care about looking like they care about the price of gas? And if that's right– and I'm not saying it is– wasn't Maximum Bob wrong in the first place? And if these rich people really cared about looking like they cared about the price of gas, why would they buy a hybrid SUV (20 mpg city) instead of something more fuel efficient (if a lot less big and infinitely less bling)? How many rich, luxury-loving, boat-towing, gas price or carbon-footprint-aware SUV drivers are there, anyway? Last question (I swear): how much did this doomed PR-mobile cost GM? OK, one more. How long before those hybrid stickers and badges show up on eBay? [First photo of one of these in the wild– customer owned– gets an honorable mention.]
More by Robert Farago
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Put em on the money OK who will pay????? Bitch bitch beatch....Some want to do their part by "claiming" they paid a lot to "HELP"..THESE M.S.R.P's are way past a joke!The jags that claimed they paid $50,000 for a SUBURBAN when they were "chic".BIG negotiator's!Heck PT'S cruisers brought more additional mark up at REGULAR DEALER auto auctions in 2000.2001.We have one on our used car lot that we priced below what was then the added monies.Who ever pays sticker for any of this stuff? Lets price em all at 72 months payment with 25% down payment with a yearly depreciation 20%.Make sense? Thanks again! Otto Sales 53074
Justin: Thanks (but don't encourage me!) ;-)
This weekend I had a very interesting conversation with Hybrid engineers in Dearborn. Their claim is that the General still can't get their new Lithium battery certified (in-house certification) beyond the 3-6 month use cycle. In fact the similar design in Dearborn suffers the same problems. In their view to produce any significant numbers of the BOLT or any other domestic hybrid (at this point in time) will be a complete failure. All Lithium Battery designs in Detroit are facing serious problems. Whether they all can work the bugs out within 2 years is a guessing game now. The clock is ticking. Meanwhile, quality and proven designs are streaming in from overseas. Without protectionist trade policies, say goodbye to the American car manufacturer. With protectionist trade policies, enjoy your heaping junk from Detroit. They have really blown themselves away this time. Sad to see them go.
golden2husky: "It costs GM virtually nothing to put this system in any of their full size trucks, so I guess they are hoping to be able to move a few more with little effort." It's extremely doubtful that it costs GM "virtually nothing." Estimates suggest it costs GM $10K more per vehicle. Moreover, they add it ONLY to the super-premium flavors of each (to hide the hybrid markup amongst the other premium options - with their inflated markups) and they don't add it to a value-priced Tahoe or Yukon. If it cost virtually nothing... let's say the $3600 alleged premium they put on the loaded Escalade... a value-oriented buyer could get a Tahoe or Yukon hybrid for under $40K... and it might be worth it to someone who tows something but hates high fuel prices and fears higher. A hybrid premium of $3600 could be repaid in 5 years or so... This isn't really a bad idea. With a hybrid premium of $3600, GM would actually rule the large hybrid market. But $3600 is not the real figure. GM apparently can't do a hybrid for low cost... as in the Prius. But I guess they also can't stand to lose face, so they build a system, to prove that they are the leader... but they build a system no one wants, so they have proved nothing.