Cadillac’s new Chief Marketing Officer, former BMW marketing executive Uwe Ellinghaus, has been very vocal about the issues he sees with the brand. In the latest report, Ellinghaus told Forbes the luxury car maker has all the right products, but struggles with “relevance.”
The 44-year old says he wants to position Cadillac as a brand that is technologically elegant and moving forward.
“What we need to build upon is the uniqueness of Cadillac and differing aspects from the other car brands,” said Ellinghaus. “I accepted this job because I was not asked to emulate the success recipe of BMW. Even if I were able to, I wouldn’t recommend going down that road because branding is about differentiation and not similarity.”
Indeed Cadillac has all the right products to push it back into a front-runner marquee. The Cadillac ATS has helped the brand appeal to a younger demographic and the 2014 CTS recently won 2013 Motor Trend Car of The Year. But Ellinghaus says the model that will really take Cadillac into the future is the ELR plug-in hybrid.
“Sure, the price is high,” Ellinghaus said, “but ELR will find an audience that is looking exactly for a car that has wonderful range and fantastic emissions and also has everything that makes a premium car fun to drive and meets their daily requirements.”
Other automakers, mainly Tesla and BMW, have seen success with their luxury electric vehicles. Cadillac’s ELR features upscale interior and exterior styling, good electric range and low emissions, all things that will help its sales case when it goes on sale for $75,000 in the first quarter of 2014.
Ellinghaus said he thinks the ELR “will be the best lever to get people to think twice about Cadillac.”
Comments
“Ellinghaus said he thinks the ELR “will be the best lever to get people to think twice about Cadillac.”
Yeah, cause nothing screens more relevance than a fancy Volt. Meanwhile Tesla released a far superior zero emission and better performing vehicle and are now working on their crossover version.
I love my Cadillacs, but the ELR is about to take an epic faceplant … for no person of reason would choose it over its competitors at that price point. So it is about to corner the all important ‘ill informed want to be the first to the Whole Foods parking lot’ market. So sure that’s awesomely relevant. smh
A crossover that’s delayed how long now? And at least the ELR is based on an architecture that’s been proven in real life, while Tesla is in the hot seat due to fire issues. There’s nothing wrong with the ELR utilizing the Voltec system, and that’s pretty much where the similarities end between the Volt and ELR. The ELR is also a limited-run model, and looks good enough to sell based on that alone. Compared to the Volt, the ELR will feel different, it will drive different, and they appeal to different buyers. As a Volt owner, I can’t wait to see what the ELR will do. It’s a great halo car for the Cadillac brand, and is kind of in a space all its own.
You also don’t know if it’s too expensive or not. Just because it costs as much as a fully loaded C7 doesn’t mean the Corvette owner will buy one. Or a Tesla Model S buyer will buy one, for that matter. Despite all the media clamor, the ELR is not a direct competitor to the Model S. The Model S is a pure EV midsized five-door, while the ELR is a EREV compact three-door. The ELR is perhaps more comparable to the BMW i8 in terms of what it is, though that vehicle is significantly more expensive than the Cadillac.
Actually it is GM execs as well as the media who are all too quick to try and associate the ELR with the Tesla S, and yes I completely agree with you they are not direct competitors … for the base Tesla S is a zero direct emissions vehicle, with 0-60 capabilities of a supercar, road manners of a 750/S Class, and priced below the ELR.
I drive an Escalade and I am fully aware that it is not the same as a Tahoe and that it has many features a Tahoe doesn’t including the engine and drivetrain … but my 12 escalade Premium was stickered at about $15/17K more than a loaded Tahoe LTZ, whereas the ELR is stickered over TWICE as much as the Volt, and that’s simply insulting peoples’ intelligence.
And as GM enthusiasts let us not go down the road of pointing out the odd Tesla vehicle fire and growing pains … for it wasn’t too long ago that the Volt was mocked for a lot more valid reasons that those when it first came out.
Hey you never know maybe people with more money than sense will buy it, after all people buy Vipers for some ungodly reason, but that’s no demographic to pin relevancy on.
Personally I would buy neither a Tesla or an ELR … the only vehicle that has a chance to compensate for the amount of carbon damage my Esky inflicts on the planet and my associated guilt is the almighty Spark EV … can’t wait for that little torque monster to be available in my area. But If someone put a gun to my head and said ‘you have to drop $75K on one of the two, even as a Cadillac fan, I would choose the S.
2 drachmas.
The difference between the Tahoe/Escalade and Volt/ELR comparison is that we’ve known for a while now that the Volt is undervalued, and GM is losing money on every one of them. I bet the ELR is compensating for that in a way. I also firmly believe the ELR should have sold first/alongside the Volt a few years ago, but I’m not opening that can of worms right now.
The only controversy I recall in regards to the Volt was that it caught fire after the NHTSA totaled one for its crash test, and improperly left it in a lot unchecked for three days, until it caught fire. That situation isn’t a quality issue, it’s an incompetence issue from the NHTSA.
BTW, I’ve driven the Spark EV. It’s hilarious. In a good way.
I think people will start caring about Cadillac when they see something significantly different than the German big 3, which I do and it’s not the ELR. He said the brand needs to be different, at the same time he sees it necessary to match BMW’s i brand which is the exact same thing as copying BMW’s recipe
Also, Cadillac needs to be the first at doing something very well at something that’s failed before.Tesla didn’t make the first electric car, they just made the first one that’s practical and good to look at at the same time. Elon Musk took a page out of Steve Jobs’s and Apple’s book, now it’s time for GM to do the same thing with Cadillac.
Here is a guy trying to sell a car he had nothing to do with and put a good spin on it.
The truth is Cadillac needs to only do what they are doing now and try to build the best car in each segment they are in. Right now they are matching and beating many of the German brands in the level of cars in class they are building.
Now it is true they should not try to be BMW or Benz but the fact is this segment is all pretty much matched up with each other. They keys to be different is refinement, innovation and styling and Cadillac is doing well in each area less the Cue issues the Critics like to pick apart.
While doing an electric car like the ELR is good it is only a baby step of where they could and should go. The only thing Tesla has done is proved if you build a good looking electric car for $100K people will buy it. But Tesla has broken a segment but they have really not broken into any real earth moving technology. Tesla has not really done anything more technology wise other than putting a larger battery in a larger car. But with that said they really are not making money on cars but on the LEV credits they are selling. Even then they have had to reinvest them in the rare supercharger stations.
While the ELR is a good start Cadillac needs to focus on just building the best cars.
One area Benz and BMW are needing to enter and are super weak in are small cars. All MFG in this segment will have to build small cars and find ways to sell them. Benz is just now building their first FWD sedan and BMW is getting negative feedback on the new little city car they are working on. Audi has a good line of cars from large to small and Various SUV models. GM could do what Audi is doing easily. Also Audi electric cars are more accepted than any of the others.
I see to reach a younger segment they really need to get the ATS Coupe right and add a convertible. Also a small sport car in the BMW type roadster would hold some appeal to this segment with out stepping on the Vettes. segment.
The ATS and even a model slotted under the ATS would be great to attract young affluent buyers into Cadillac. Now to make the attraction to the small models work the CTS and LTS have to present an image that would want people to be seen in a Cadillac. The CTS has done this but a LTS like Elmirage would also add to this image.
You make Cadillacs that someone would want to put a poster up in their office or cubical and you have won their desires and hearts. GM is on their way there but there is still a lot of work to do.
Scott, great ideas! I think GM should put more diesels in their lineup especially in Cadillac. That’s what Audi is doing, why not?
Diesels are a must for Europe and a nice option here. While many enthusiast clamor for a Diesel the general public is still kind of Eh here in the states.
But if they can get a good line of Diesels started for Europe the extra income from the ones they sell here is all good.
It will be interesting to see what the Cruze Diesel and Colorado Diesel do here as it may determine where the market will go.
You can sell a full size diesel in a large truck all day but the rest of the market here is still skeptical. Too many have never driven one or really even care. Either way Cadillac will not live and die by the Diesel in the states but they will in Europe.
Here’s the problem with diesel in the US …
People have calculators, and when Jeep is charging them $4500 extra over the same non diesel Grand Cherokee AND diesel is more expensive than 93 octane, they can do the math and figure out that they are unlikely to recover the extra cost, and even if they did because they kept their GC twice as long as the average American owns their vehicle it would be a minimal gain and hardly worth the psychological and practical leap to diesel.
All the alternative energy methods, be they diesel, fuel cells, plug in, hybrid, EV, only become viable at a critical mass level when they are priced the same as gasoline vehicles so that the numbers make sense to the average person as a better alternative, otherwise they are marginal products for the socially/ecologically progressive few who are willing to part with more of their money just for the idea of not having a gasoline powered vehicle.
It’s a case by case basis. Some people, mostly older buyers, are apprehensive to switch to diesel, just because it’s diesel. There’s more to diesel than just fuel economy, as there’s also a performance factor. And with the 3.0L EcoDiesel Jeep Grand Cherokee putting down more torque than the 5.7L HEMI V8 model while returning an estimated 30 mpg hwy (5 mpg more than the V6 model), and best-in-class towing, there’s something to be said, and could be worth the premium cost in many eyes.
“Sure, the price is high,” Ellinghaus said, “but ELR will find an audience…”
You see the first part of that sentence will prevent the second part of that sentence.
Once sales for the ELR disappoint within the first year, I expect this guy to comment that the ELR is still an appealing car, but its appeal is becoming more selective.
I love the ELR. But honestly, who in the right state of mind would buy an electric Cadillac for $75 BIG ONES?!!
@Scott writing “One area Benz and BMW are needing to enter and are super weak in are small cars.”
BMW Group includes the Mini(*), and Mercedes owns the Smart. Mercedes is also in the compact class under its own brand name with the A-series.
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(*) and on the other end: Rolls-Royce
The tragic part of this story, is the ELR should have come befor the Volt, not after. If GM would have introduced the volt technology on the high end it would have created a halo effect for the concept and beaten Tesla to market. Now, all we have is a luxary volt.
On another note, anyone notice the rear of the Volt looks like Pontiac Aztec?
I am not sure but the same was thought of Tesla’s. GM at least is in a better place to make money with them in lower volumes.
I wish they has an Gas only option with a 300 HP plus Ecotec turbo.
I know both brands but the Smart car is not anything and has flopped here. The Mini did ok but is only a blip on the radar in the states though it does well globally but it is still not a BMW in name. Just check the reaction the to new little BMW last week and you will see what I mean.
Now compare those two models to all the small cars GM builds. While it will still be challenge for Cadillac to build smaller cars it they will have more to draw from.
The fact is this.
Americans are not in love with Diesel cars.
Diesels are a lot more expensive and this is a turn off for many buyers.
Emissions on Diesels are getting tougher and tougher . The standards here are not the same as in Europe where they are more forgiving.
It is like hatchbacks and wagons Europe is a different market and has different likes. Unless things change here American Diesels will remain a small part of the market vs. a larger one like overseas.
Like I said lets see what the Cruze does as well as the Colorado. Many said they wanted them but will they now buy them?
I like a Diesel but the reality of the market is still there.
The ELR has less range than my Volt, has two fewer doors than my Volt, has the same front-wheel drive as my Volt, has the same number of seats as my Volt (but less overall room), has a small trunk instead of my Volt’s spacious hatchback, accelerates 0-60 one second faster than my Volt, and has Forward Collision Alert & Lane Departure Warning just like the 2014 Volt.
However, if a prospective buyer feels it’s worth $42,000+ more to get Side Blind Zone Alert, Rear Cross-Traffic Alert, full-speed-range adaptive cruise control, online programmable charging schedules and energy-efficiency reports, the C.U.E. infotainment system, 20-inch wheels, HiPer Strut front suspension, compound-crank with Watts link rear suspension and Continuous Damping Control, active noise cancellation (which may mask some engine noise but won’t help with road noise), LED-powered accent lighting in the instrument panel and doors, 8-way heated & cooled power front seats with power adjustable lumbar support, dual-zone climate controls, a heated steering wheel, speed-sensitive wipers, full LED Xenon high-intensity adaptive headlamps, full LED tail lamps, and a concierge phone number just for ELR owners, then said buyer should be happy come 2014.
Personally, I think all of that is worth about $20,000 more, but not $42,000+ more ($40,850 for a fully-loaded Volt vs. $83,145 for a fully-loaded ELR, although if you add Los Angeles sales tax, that’d be $44,833 vs. $91,252 for a difference of $46,000+).
I think we all should wait for the final results of the ELR before we compare too much. There will be more than just what some thing will change.
Besides it should not be like the Volt as it is not meant to compete with it nor appeal to this group of buyers.
If they sell 5K – 10K then mission accomplished.