Cadillac is once again defending its full-size luxury Escalade SUV from assault by the hot-selling Lincoln Navigator, offering $ 10,000 discounts to some current customers to keep them from switching brands.
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The discount, reported by Bloomberg, applies to lessees of 2016 model-year Escalades, with a $ 7,500 discount offered to owners, through May 31.
It’s at least the second time GM has resorted to incentives to keep customers in its cash-cow luxurySUV since Ford launched the all-new 2018 Navigator late last year. In November, Cadillacoffered a $ 5,000 discount on the purchase or lease of the Escalade to any buyer who traded in a 1999 or newer Lincoln model.
Analysts have estimated that the Escalade produces nearly $ 1 billion in yearly profit for GM.
Escalade sales were up 14 percent in March and 8 percent during the first quarter, with retail sales up by double-digit percentages in both periods, higher transaction prices and market share expected to climb by 2 percent year-to-date, according to GM. That’s impressive for a vehicle that has received only minor updates since the current generation went on sale for 2015.
While it still trails the Escalade in sales, the Navigator has been riding a 63 percent increase in deliveries this year, with new models lasting on dealer lots an average of only 10 days and average prices ballooning to $ 82,500, according to Bloomberg. Ford earlier this year announced it was pouring $ 25 million into its Kentucky Truck Plant in Louisville to boost production of the Navigator and Ford Expedition.