2014 Cadillac ELR (GM)
General Motors Co. said Friday it will price its 2014 Cadillac ELR plug-in luxurycoupe at $75,995 when it goes on sale early next year — a starting price that was significantly higher than several analysts had predicted.
The Detroit automaker said that after a federal tax credit of $7,500, the vehicle will cost $68,495. A lease price has not been announced.
The ELR’s total range is expected to be greater than 300 miles, while drivers can expect to travel on the ELR’s electric battery for about 35 highway miles. Certified figures from the Environmental Protection Agency are not yet available, GM said.
Production on the luxury coupe at GM’s Detroit-Hamtramck Assembly Plant is expected to begin in December, and it should hit dealer lots nationally in early January, said Cadillac spokesman David Caldwell. Caldwell said the ELR would be available in all major metro areas from about 500 certified Cadillac dealers out of the brand’s 900 Cadillac dealers nationally. Production will be limited and Caldwell said GM likely will build 2,000 to 4,000 in the first year.
“The ELR is a unique blend of dramatic design with electric vehicle technology capable of total range in excess of 300 miles,” said Bob Ferguson, senior vice president of global Cadillac, in a statement.
“ELR is also unique in that it will be offered nationwide within a luxury customer experience, with proven benefits and care extending from the shopping process all the way through the ownership experience.”
Several analysts had been expecting a lower sticker price. Ed Kim, vice president of industry analysis at AutoPacific Inc., on Friday tweeted: “A Volt with a Cadillac body and badge for Tesla Model S money? Is GM on crack?”
But Jim Hall, an analyst with 2953 Analytics in Birmingham, said the pricing strategy for the ELR works for the luxury brand.
“They need to have a Cadillac that is desirable and not easily attainable,” Hall said in a telephone interview. “One way you do that is with price and the other with (supply).”
Analysts from car shopping website Kelley Blue Book said Cadillac must be looking to follow Tesla Motors’ success with its Model S electric luxury vehicle, priced at about $73,570 for the 85kWh battery version, but noted the ELR’s price tag will be too expensive for most customers.
“Tesla has established that there are buyers willing to shell out top dollar for an electric vehicle that offers cutting-edge style and technology, so Cadillac will need to find a way to tap into that market to be successful,” Alec Gutierrez, senior analyst at Kelley Blue Book, said in a statement.
GM has been studying Tesla. GM Chairman and CEO Dan Akerson told The Detroit News last month that the company intends to compete head-to-head with Tesla through its Cadillac brand.
Cadillac said the ELR will have few options and comes standard with the Cadillac User Experience, or CUE, infotainment system.