GM offers $10k rebates on Escalade to fend off owners leaving to Navigator

[blwnsmoke]

https://www.yahoo.com/finance/news/gm-rolls-10-000-discount-090000338.html Edited April 16, 2018 by blwnsmoke

[fuzzymoomoo]

Well yeah on 2016s.... its 2018 and they still have 2016s sitting around......

[LSchicago]

Well yeah on 2016s.... its 2018 and they still have 2016s sitting around......

I took it to mean people who have leases on 2016's currently. Caddy want's to make sure they don't trade their leases for a Navigator.

[fuzzymoomoo]

I took it to mean people who have leases on 2016's currently. Caddy want's to make sure they don't trade their leases for a Navigator.

I think youre right, I misread it.

[Assimilator]

The margins are massive and Caddy has been taking advantage of those customers...as they should. They put very little in and get a ton out which is why Lincoln has to work MUCH harder to gain traction.

 

I think this is largely momentary until a NG Escalade comes out which will probably make everybody forget about Navigator again. Whenever Caddy does something, they usually go pretty big.

Edited April 16, 2018 by Assimilator

[jpd80]

It's highly likely that the new Navigator will be enough to encourage past buyers to come back home

[sullynd]

What should really have Caddy nervous is the Aviator. Its crazy they never had a Caddy lambda. Will be interesting to see if they do a LWB XT5 in response.

 

The Aviator (assuming it doesnt get lost in translation) cleans up some of the things I dont like about the Navi.

[630land]

Rebates dilute the brand.

[akirby]

Rebates are ok when used strategically and short term. In this case it could keep some buyers in a GM that might have otherwise jumped ship to the new shiny Navigator.

 

However, I suspect that mostly this will just pull ahead sales for folks planning to buy a new GM within the next 6-12 months. It will help the sales numbers short term but hurt long term.

[sullynd]

I wonder how that impacts Denali.

[rmc523]

I wonder how that impacts Denali.

From what I understand, this is only for Escalade owners. So unless an Escalade owner was ready to downgrade to a Denali and this changed their mind, it shouldnt affect Denali numbers.

[jasonj80]

All this is going to do is get a bunch of people to re-lease an Escalade, keep the sales numbers up. They toss 10K on the lease make the new lease between hundred and two hundred dollars cheaper a month keep them locked in for 3 years and move them to a new Escalade when its out but not right as it comes out so they can give some incentives on them.

The Question is going to be how Lincoln responds with the MCE in 2 1/2 years. All but assured that the new Escalade will get the TTV8 and Super Cruise. If Ford can beat performance of that with a Hybrid while offering 50% or 100% better mileage, along with Ford's own self driving options with a Night Vision System it will continue to gain share.

GM will be watching the Aviator closely, they also have to be looking at CD6 and what it will allow Lincoln to do all while spreading that cost over the Explorer which in itself has high ATP's and a lot of volume.