AD #2333 – GM Slaps Big Discount on Escalade, Company Applies V2V to Racing, Tesla Has Too Many Robots

April 16th, 2018 at 11:27am

Runtime: 6:54

0:31 GM Slaps Big Discount on Escalade
1:14 GM Cuts Shift at Cruze Plant
2:20 Company Applies V2V Technology to Racing
3:15 Tesla Says It Has Too Many Robots
4:44 2019 Jeep Cherokee Styling Changes

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28 Comments to “AD #2333 – GM Slaps Big Discount on Escalade, Company Applies V2V to Racing, Tesla Has Too Many Robots”

  1. Chuck Grenci Says:

    Since the Escalade numbers are still rising, it doesn’t sound that Lincoln is getting (too) many conquest sales from Cadillac. Cadillac might even offer an incentive from trade-in (of Lincolns) since, after-all, 7500 is pretty hefty to current owners; why not offer 5000 to Lincoln defectors. I just read the transcript; GM is offering the 5 grand to current Lincoln owners.

  2. Lex Says:

    How hard would it be for the Lordstown Plant to switch over to producing Chevy Equinox’s and GMC Terrains? There is a shortage of 2.0 liter Turbo powered versions of these vehicles on dealers lots.

    If GM is able to ramp up production of the Equinox and Terrain with the 2.0 liter turbo then maybe Honda will follow suit and ditch that underpowered 1.5 liter turbo and replace it with the 2.0 liter turbo for the 2019 CR-V! Honda can keep the 2.4 liter in the CR-V LX and upgrade all other trims to the 2.0 Liter Turbo for 2019.

  3. Lisk Says:

    Didn’t Autoline do short a few years ago about a GM plant in South America that was build 3 or four different carlines out of the same plant, back to back. This would alleviate a lot of plant gluts/shortages.

  4. Bob White Says:

    The Escalade is a mediocre product rating at the bottom of reliability reports from Consumer Reports and JD Power. It’s even on Consumer Report’s list of 10 worst vehicles to buy. How can this be explained by GM considering it’s humble and basic pick-up truck chassis. Yes it’s a glorified pick-up truck so why is it so unreliable.

    Ford’s Navigator and other competitors are all significantly more refined.

  5. Kit Gerhart Says:

    Chevy might consider moving production of the Cruze hatch to Lordstown from Mexico. The linked article said the hatch now is about 20% of Cruze sales, and there is enough “made in America” sentiment that sales would increase, if production were moved to the U.S.

    2 They may need to ramp up production of the GM 2.0 turbo engine itself, to be able to put more of them in Equinox/Terrain. They use that engine in everything from Camaro and all Cadillac cars, to the smaller CUV’s. Just guessing on that.

    Regarding CR-V, how is it “underpowered” with the 1.5 turbo? It is near best-in-class in acceleration with that engine, and is best-in-class in fuel economy, except for maybe the diesel Equinox/Terrain. Yes, a CR-V would be more “fun” with a 2.0 turbo.

  6. Kit Gerhart Says:

    4 Could the extra “gadgetry” of the Escalade make it less reliable than some of its near-siblings?

  7. Frederick Schmidt Says:

    The new Jeep front nose is a giant step in refinement. Styling in Jeep/Dodge vehicles in recent years have been a bright aspect for the company. I know its lage but I love the Challenger. Does anyone know the ratio of own vs lease for the Escalade over the past 5 to 10 years? The high profit margin good for GM but not so good for customers. Will the Lincoln cut into the margin? Maybe after a couple of years of the Navigator taking sales from the Escalade.

  8. Buzzerd Says:

    It takes very little to get to the bottom of the reliability list. You often see that a change to 2 wheel drive or different motor suddenly makes it great. Also infotainment systems can hit them hard. Like many I take those lists with a heavy grain of salt.

  9. Kit Gerhart Says:

    The next generation Escalade et. al. will arrive in about a year, and should be better where the current one is lacking, refinement, and packaging. The current one performs well, with a 6.1 second 0-60 time in CR’s tests, and with the 6.2 V8, it almost matches the mpg of the Navigator with a 3.5 turbo V6.

  10. Len Simpson Says:

    Instrument panels should have gone digital a long time ago , & the over informative big screens are going to rack up a lot of distraction caused accidents

  11. G.A.Branigan Says:

    @ Buzzerd: Yeah,I think one of the biggest complaints is the CUE connectivity/infotainment pkg. Have they switched over to the 10 spd autos yet? If so,the people may not like the mapping on the trans. I have read that the gm version of the 10 spd is somewhat ‘confused’.

  12. Ken Says:

    To Bob White’s comment on the Escalade:

    As just happened with the Honda Accord vs Toyota Camry: Toyota built a better Camry. Honda built a better car. GM has had tremendous luck with the Escalade. Just like Chrysler had with the 300. It was the status of design and the times of just a few years ago that brought these vehicles to the limelight. While the 300 is dwindling in every way possible, it’s not a SUV. Cadillac will continue its onslaught as long as the public demands it no matter the vehicles faults. Many people, no matter their wealth, disregard or just plain do not see the inferiority of the mass that is the Escalade. Lincoln has built a better SUV and GM knows it. And to mention the “new” Aviator coming, will put some Himalayan sea salt in the wound. It’s time the Escalade come in for an overhaul.

  13. Len Simpson Says:

    Putting a Cadillac grill on an unrefined Chevrolet body & sticking odd pieces of brightwork here & there results in overpriced disatisfaction . Comparison shopped once upon a time at a Cadillac/chevy dealership,. The cabin noise in the Cadillac was actually worse than the same body style Chevy. Quietly happy w/my GMC Envoy –”Truck”, and it’s rice rocket straight 6

  14. Lisk Says:

    11) All of the GM trucks with the 6.2L are paired with the 10 spd auto. I think the Escalade’s prodlems are tied to all the electrics that keep supplementing/replacing hard buttons. You should have to go through “layers” to set clocks, radio stations, etc. I can’t imagine how confusing it is to drive a Tesla when there are practically no hard buttons.

  15. Ken Says:

    Isn’t it amazing what people will spend on a vehicle. “Refine it and make it worth something.” Oh, but if we do that, then the general public will never afford it. Quality and reliability trade-offs will conquer the day. GM builds the Escalade off a truck chassis, not the architecture of the likes of Audi, BMW or Benz. GM does not have to do much to put that SUV body on it. It’s a shared environment. …to expensive for GM to dedicate a chassis/platform just for the Escalade. You wanna spend $75K+? Look at another brand with a high quality and reliability record. …not to mention styling. And less void of all the hard, cheap interior plastics. I wouldn’t want cardboard for $75K+.

  16. Len Engler Says:

    Hi John, you keep reporting how weak hybrid and plugin hybrid sales are, but given the vehicles that they encompass it is no wonder. How does the Pacifica plugin compare to the others in percentage of sales. I would like to see more suv’s and crossovers as plugin hybrids while maintaining tow and hauling performance.

  17. Kit Gerhart Says:

    11 G.A., From the CR web site, the current Escalade has the 6.2 engine, and the 10-speed automatic.

    Also, they rate the “controls and displays,” that’s CUE, as 1 of 5. They don’t rate many infotainment systems that low.

  18. G.A.Branigan Says:

    I just watched the show on the new Jeep Cherokee. Excellent from start to finish. My first new Jeep was the XJ,Cherokee. The last production year of the shoebox style.

    2001,4.0L IL6,4 spd auto. It was a good hwy machine,and an animal off road. I took it up some nasty washed out mining roads outside of Kingman AZ to do some nugget shooting with my metal detector.

    I brought one of my daughters with me and it was the first time ‘mountain climbing’ in a Jeep. We had a lot of fun that day.

    We went to one old tailing pile just outside the mouth of an old shaft. It still had tnt sticks in the drill holes dripping nitro from the age and heat. Never went back there ;}>

  19. Kit Gerhart Says:

    12 I suspect part, or most of why the cabin noise of the Escalade would be higher than the Tahoe, is that the Escalade uses 22 inch Blingmaster wheels, while the Chevy uses 18 inch wheels.

  20. Chuck Grenci Says:

    If the Escalade were as bad as some infer they wouldn’t be selling as they do; lord knows that Cadillac’s marketing is not the reason for its success. There are a lot of gadgets on the Caddy that can go wrong but if you delve into the Chevy and the Caddy differences there are up-levels in trim, glass, interior etc. between the two. Whether the differences are worth the cost, well, that’s up to the buyer. Chevy sells a bunch too. The platform is very good, and Lincoln is finally getting there too, so upcoming product should reflect this competition.

  21. Kit Gerhart Says:

    I suspect most of the people who buy an Escalade over a “loaded” Tahoe or Yukon do so because they want the bling.

    I don’t personally know anyone who has bought any of the three new in a long time, but a friend recently bought a used Tahoe, mainly for fairly heavy towing, and saved a lot of money over buying a new one.

    I’ve read that the next Tahoe/Yukon/Escalade with have IRS, which should bump it up a notch in ride and handling. Still, there is no logical reason to buy these things, unless you are going to tow something big and heavy. A “minivan,” or big crossover like Traverse is better if you are just going to carry people and normal cargo.

  22. Albemarle Says:

    My personal observation is that high margin vehicles like the Escalade and others are (a) seriously discounted when sales slow, which is obvious, but also (b) have quite high depreciation.

  23. G.A.Branigan Says:

    @ Kit:

    I think you are right on the 22′s. Now you know I’m into trucks so why would I say this? For example,looking at some of the 1500 trim levels I would be interested in from Ram,they come standard with 20′s.

    It used to be you could opt out and go with 17″. It doesn’t appear so anymore on the 2018 build and price config. I have always considered the sidewall as part of the suspension,especially when I went off roading on a regular basis.

    So that right there would preclude Ram 1500′s that I might have considered. Aftermarket rims is a crap shoot at best just for balancing issues.

  24. Ed Says:

    If you go to a dealership and look at the used cars nothing looks as dated as a year old Escalade, to see the future just go look at what is 5 years old and how sad some are.

  25. Ukendoit Says:

    Kit, I agree with your assessment on no logical reason for that size unless towing. I would still own my 2001 Jeep Grand Cherokee if we hadn’t bought a travel trailer that was too big for it to tow, so I went with a RAM 2500. Before the trailer, I thought I may eventually get a Pacifica, smaller CUV, or even a Bolt after a few years of working the bugs out.
    The RAM is great, but I would see no excuse for that behemoth to be on the road if I didn’t need the towing capacity!

  26. joe Says:

    How Tesla is still in business is mind baffling. Any other company with all these problems would have been out of business a long time ago. What it is, I think, is investors think it’s going to be another Google or Amazon. One thing they do not realize is the two type of business are very much different.

  27. Kit Gerhart Says:

    23 From the “build and price” for the 2019 Ram, it looks like not only are too-large wheels mandatory on most trim levels, but a regular cab is not available at all. All of the “mid-size” trucks had already quit selling regular cabs, and now, it looks like extra large Ford and GM trucks will be the only game in town for regular cab pickups.

  28. veh Says:

    Is it possible that the regular cab Ram in the new design will come out later? They’re smart to build the higher margin vehicles first, and they’ve got the old style Ram kicking around through 2019.

    According to my numbers, regular cab accounts for significantly less than 10% of Ram 1500 sales