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Cadillac Goes On Offensive With Lincoln By Throwing $5,000 At Escalade

Cadillac Goes On Offensive With Lincoln By Throwing $5,000 At Escalade

General Motors is going on the offensive with the Cadillac Escalade just as rival Lincoln rolls out an all-new version of their competitor, the Navigator. The company has issued a memo to dealerships authorizing a new $5,000 rebate for buyers trading in a Lincoln product.

Specifically, the memo, obtained by Bloomberg, is nationwide and open to any Escalade buyers trading in a 1999 or newer Lincoln product. While the timing seems to coincide specifically with the launch of the 2018 Navigator, GM says it has more to do with the outgoing Navigator model.

According to a GM spokesman, the average transaction price of the outgoing 2017 model is at $53,000, compared to $80,000 for the Escalade. GM says the discount is being added to better compete with the steeply-discounted 2017 Navigator. In comparison, the 2018 Navigator starts at just over $72,000.

By all accounts, the 2018 Navigator is a massive step up for Lincoln and really the first all-new Navigator in about 15 years. Cadillac’s fears are probably not exaggerated and the potential impact on GM’s financial statement is not insignificant.

Analysts estimate GM’s share of the full-size SUV profit margin is approximately $2 billion per year. Ford is on the record of stating that the company feels GM has a disproportionate amount of the full-size market, so the company is going on the defensive with both the 2018 Navigator and 2018 Ford Expedition.

GM may find themselves in a discounting position on all of their full-size SUVs until they can churn out all-new models that better match the all-new Ford products. Right now GM is slated to roll out new SUVs in 2020.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. 2b2
    nsaporito
    I've always heard GM maintains about a $15,000 margin on the full-sizers, so I doubt this is hurting them too much...


    :thumb: :EEK: :facepalm:

    nsaporito
    ...I also think they are over-blowing the situation. The new Navigator is an excellent product, but the Escalade isn't exactly uncompetitive...I don't think it's uncompetitive however the reviews that have been dropping are all unanimously in favor of the Navigator over the Escalade. It's been a long time since that was the case. Last Navigator design I truly loved was the 03-06 model. The interior of this new one though is stunning it really makes the Escalade look old specially with the old column shifter vs the Piano key shifters.


    why^ I hafta keep reminding my self to DISCOUNT, if Not IGNORE, "Opinion 'Reviews'".

    I have, & believe ANYone who has, SAT in the SECOND (or 3rd) rows; COULD NEVER BUY the GM > the floor is so high, it's (almost) like sitting on the FLOOR!

    UNpleasant for even short rides!!
    Andrew_L
    nsaporito
    I've always heard GM maintains about a $15,000 margin on the full-sizers, so I doubt this is hurting them too much.

    I also think they are over-blowing the situation. The new Navigator is an excellent product, but the Escalade isn't exactly uncompetitive. It's just more mature in the lifecycle. Plus, Navigator still doesn't have the image the Escalade has.


    I don't think it's uncompetitive however the reviews that have been dropping are all unanimously in favor of the Navigator over the Escalade. It's been a long time since that was the case. Last Navigator design I truly loved was the 03-06 model. The interior of this new one though is stunning it really makes the Escalade look old specially with the old column shifter vs the Piano key shifters.
    adk024
    CobaltSSKing
    This is more done because a refreshed Slade is probably quite a few months away.


    nsaporito
    ...but the Escalade isn't exactly uncompetitive. It's just more mature in the lifecycle. Plus, Navigator still doesn't have the image the Escalade has.


    I think this is more the point than being scared of the Navigator. GM always starts putting money on the hoods at this point in the lifecycle, might as well try to rob Lincoln of a few sales while they are at it.
    nsaporito
    I've always heard GM maintains about a $15,000 margin on the full-sizers, so I doubt this is hurting them too much.

    I also think they are over-blowing the situation. The new Navigator is an excellent product, but the Escalade isn't exactly uncompetitive. It's just more mature in the lifecycle. Plus, Navigator still doesn't have the image the Escalade has.
    CobaltSSKing
    2b2
    seems to me when the current-gen 'Lade came out the price went up quite a bit...

    ...enuf to have that $5k incentive baked-in


    Oh that's definitely the case. Just look at the dealer incentives that are offered. This is more done because a refreshed Slade is probably quite a few months away.
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