Comments on: 2014 Cadillac ELR EREV Priced At $76,000

By: Bob_Wallace

Bob_Wallace — Thu, 17 Oct 2013 16:32:00 +0000

Manufactures always “lose” money on new models if one expects immediate recovery of R&D costs. Proper accounting calls for spreading those costs over all units produced during the course of the run.

The Volt was developed for an amazingly low amount of money for such a revolutionary vehicle, about $1 billion. The Ford Edsel cost $2 billion in current dollars and we know how well that car paid for its R&D costs.

By: MieScatter

MieScatter — Thu, 17 Oct 2013 10:48:00 +0000

“I understand that GM basically lost money on every Volt it built”
According to Reuters:
http://uk.reuters.com/article/2012/09/10/uk-generalmotors-autos-volt-idUKBRE88904R20120910

Manufacturing cost is estimated between $20-32k. At a sticker price of $35k, they make between $3k and $15k on every sale. Should be enough to start paying off the R&D and marketing investment I’d guess?

By: arne-nl

arne-nl — Thu, 17 Oct 2013 06:57:00 +0000

“I understand that GM basically lost money on every Volt it built”

Source please? Are you sure you’re not swallowing the misinformation from GM/Volt/EV haters club?

By: Jouni Valkonen

Jouni Valkonen — Thu, 17 Oct 2013 03:07:00 +0000

It seems that big automanufacturers does indeed have serious troubles to match Model S.

However Nissan may try something if it manages to bring new LEAF on markets early 2014. 48 kWh LEAF could fit well into the 40k–50k segment and kill BMW i3.

“Nissan Tests 48-kWh LEAF at ECOseries”
http://insideevs.com/nissan-tests-48-kwh-leaf-at-ecoseries/

By: J_JamesM

J_JamesM — Thu, 17 Oct 2013 02:10:00 +0000

“On May 21, 1981, one of the biggest “You’ve got to be kidding me!” moves in automotive history was made when General Motors’ Cadillac Division rolled out the Cimarron to an unenthusiastic, not-so gullible press corps and public. Essentially a rebodied Chevrolet Cavalier, even today the Cimarron evinces grimaces from Cadillac faithful.”

“The Cimarron was virtually identical to GM’s other J cars, but its Planet Bizarro pricing was roughly TWICE that of any of the other “J” cars that had the same equipment.”

“The car eventually became such a standard of the world for what not to do that, according to Car and Driver, Cadillac Product Director John Howell had a picture of the Cimarron on a wall that said, “Lest we forget.”

– Car Lust blog

And it would seem as if Cadillac HAS forgotten. The Cimarron was a catastrophe that set back the brand name for decades. Even worse, at least the Cavalier and Cimarron were largely identical; the ELR has nowhere near the practicality of the Volt and little in the way of performance improvements to show for it.