Published on May 14th, 2014 | by Christopher DeMorro
GM Offering Dealers $5,000 For Cadillac ELR Test Drives
In the five months since it’s debut, just 247 Cadillac ELR plug-in hybrids, prompting GM to offer dealers up to $5,000 to take potential customers on test drives. Hey GM, here’s an idea for you; how about you shave $5,000 off your overpriced Chevy Volt…and then another $10,000 for good measure.
Actually, GM is offering potential buyers and lessees up to $3,000 off the MSRP in the form of various discounts, and there might still be a few of those free charging stations left for grabs too. But the suits in charge seem to think that all it takes is a few more test drives and awareness to move the ELR, which currently has a 725-day supply. That’s to say, if GM stopped building the ELR tomorrow, there are enough cars already built to sustain the current pace of sales for another two years. Typically, dealers like to keep a 60 to 90 day supply of vehicles on the lot.
The solution? Give dealers with at least one Cadillac ELR in their test fleet $5,000 if they can rack up at least 750 miles worth of test drives between May 1st and June 2nd. GM seems to think that more test drives will result in more sales, but I’m just not convinced. Anybody with $76,000 to spend on a new car has a wide variety of options, including the Tesla Model S, which is by most accounts a far superior car.
But that’s not to say GM is ready to concede the green car throne to Tesla, as recent spy pictures suggest that a hotter Cadillac ELR-V or Vsport is being benchmarked against the Tesla Model S. Also, just because it’s not as good as one of the best cars ever made isn’t to say the ELR isn’t a good car. Those few who have bought an ELR seem happy with the decision, but GM obviously isn’t happy with sales.
It really is a shame GM is so intent on pricing the ELR so high. As a $60,000 car (plus the $7,500 tax rebate), I feel like there would be so many more buyers willing to dip their toe into the growing field of electrified luxury cars. But if you’re really going to spend that much money on a green car, why get anything less than the best?
Source: Automotive News