Consumers and members of the media have claimed Cadillac’s $75,000 price tag for the ELR was too high since it was announced, but now the automaker itself is acknowledging the sticker on the plug-in hybrid EV was too high.
Cadillac marketing boss Uwe Ellinghaus recently admitted to Bloomberg the ELR’s steep $75K price tag was “indeed, a mouthful.” He said Cadillac priced the hybrid in a way that would highlight its array of standard equipment and technologies, but most consumers didn’t take this into account anyway.
“We overestimated that customers would realize our competitors were naked at that price,” Ellinghaus said.
In the last 18 months, Cadillac has sold just 1,835 ELRs, many at a price that is well under the steep asking price. As a result, the automaker went back to the drawing board for 2016, lowering then updated model’s price by nearly $10,000 before tax incentives and upping the power of the electric motor with software revision.
All-in-all, Ellinghaus says the ELR was a “great learning exercise.” A next-generation ELR may not be on the cards, but thanks to the ELR’s pricing blunder, Cadillac may be more careful when pricing out a future hybrid or electric model.