Trying to prevent customers from defecting to the Lincoln Navigator
There's a war going on between Cadillac and Lincoln. With the new Navigator, Lincoln has a very compelling alternative to Cadillac's aging Escalade. But Cadillac is fighting back by dumping a bunch of cash on the hood.
Bloomberg obtained a memo sent to Cadillac dealers that announces a new promotion where current lease customers of 2016 Escalades are being offered a $10,000 discount on a new Escalade. Owners of 2016 Escalades have to make do with a $7,500 discount. The promotion runs until the end of May. GM Spokesman Jim Cain confirmed the promotion to Bloomberg.
This isn't the first time Cadillac has put a huge amount of money onto the hood of the Escalade. Back in November, Cadillac was offering owners of Lincoln models from 1999 to the current model year a $5,000 discount on an Escalade.
Cadillac still holds a significant edge over the Navigator in terms of sales - 8,111 Escalades vs. 4,062 Navigators through March. But Lincoln is gaining ground with Navigators only sitting on dealer lots 10 days on average.
“GM is trying to keep Escalade buyers out of Navigators, for sure. You’ve got a fresh Navigator and you’ve got an Escalade that is not new and is starting to age,” said Jeff Schuster, an analyst at LMC Automotive.
“This is a particular battle that GM doesn’t want to lose ground in. It speaks to the importance of the Escalade.”
Source: Bloomberg
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