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The Cadillac ELR is shaping up to be one of the biggest automotive flops in recent memory – as of May 1, inventories had expanded to a 725 day supply, with Cadillac moving just 61 units in April.
At the start of April, dealers had 1,077 ELRs on their lots. As of May 14th, that number had increased to 1,517, with inventories far outpacing sales of the car.
Now, Automotive News is reporting that dealers are being offered a $5,000 incentive to offer test drivers of the car if they have seven or less unused ELRs in their fleet, and $10,000 for two ELR demos if they have more than seven units. The test drive demos must log 750 or more miles, with the program expiring on June 2nd.
GM is also offering a $3,000 customer incentive if an ELR is purchased or leased (on top of government incentives that already exists), and dealers can qualify for a $2,000 incentive in July or a $1,000 incentive in August for selling ELRs.
While a Cadillac spokesman insists that the inventory backup is a result of production scheduling, the rising inventories, lagging sales and heavy incentives paint a clear picture: the ELR is an overpriced dog that is finding few buyers compared to the much cheaper Chevrolet Volt and the much more prestigious Tesla Model S, to say nothing of the various plug-in and pure EV offerings from other car makers.
Even worse is Cadillac's inventory picture as a brand: according to the Automotive News Data Center every vehicle except the SRX recording over 100 day's worth of inventory. Even the much lauded ATS and CTS had 153 and 138 day's supply, far above industry norms.
from The Truth About Cars http://ift.tt/Jh8LjA
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