forakzai forakzai 04/16/2018 - 08:36pm

GM Rolls Out $10,000 Discount on Escalade to Fend Off Navigator

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    is stepping up its defense of the Escalade SUV, a cash cow for Cadillac and the company, by offering $10,000 discounts to some current customers to keep them from straying to Ford Motor Co.’s hot-selling new Lincoln Navigator. The promotion runs through May 31, according to a memo GM sent dealers that was obtained by Bloomberg News. Jim Cain, a GM spokesman, confirmed its authenticity, calling it “an exclusive private offer” designed to “keep people in the family.”

    GM has ample reason to keep Escalade buyers coming back. The big sport utility vehicle generates outsize profit from relatively modest sales: Morgan Stanley analyst Adam Jonas has estimated it produces about $1 billion in annual profit, contributing to a $2 billion earnings advantage GM has across all its large SUVs over Ford. “You’ve got a fresh Navigator and you’ve got an Escalade that is not new and is starting to age.”

    Gaining Ground

    While the Escalade outsells the Navigator, Lincoln’s contender is quickly gaining ground.

    The average price paid in March for Navigators ballooned by about $25,600 from a year earlier to $82,500, roughly on par with the Escalade, Mark LaNeve, Ford’s U.S. sales chief, said during an April 3 monthly sales conference call. Analysts estimate that profit per vehicle can top $20,000 on the Escalade. “The new Navigator has sent a signal to Cadillac that they need to be in front of this and be aggressive.”

    This is at least the second significant deal GM has dangled to blunt the impact from the new Navigator. In November, GM offered Lincoln owners a $5,000 incentive to trade in any model since 1999 for a new Escalade.

    The moves seem to be working: Escalade sales are up this year, and average transaction prices have risen slightly, according to Cain, the GM spokesman.

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  • KennyH
    1 week ago 1 P-Nos Points
    Even with that huge discount, I would definitely take the Navigator! It's is 100% worth the extra money
    • forakzai
      1 week ago 1 P-Nos Points
      lol yeah the Navigator is just a way better car
  • smoke3316
    1 week ago 1 P-Nos Points
    I would still pay more for the Navigator.

    • forakzai
      1 week ago 1 P-Nos Points
      same here... Lincoln simply made a better car
  • zer0wo
    1 week ago 1 P-Nos Points
    They can't make enough Navigators LOL
    • forakzai
      1 week ago 1 P-Nos Points
      Lol and GM can't discount enough 😂😂
  • forakzai
    1 week ago 0 P-Nos Points
    LOL I'm not surprised at all considering how awesome the new Navigator is