Friday 20 November 2015

Cadillac: We’ll Do Three—Maybe Four—Additional Crossover SUVs, No More Standalone EVs

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2017 Cadillac XT5

At the introduction of its new XT5 mid-size crossover—which made its worldwide debut in Dubai, followed shortly thereafter by a North American premiere at the L.A. auto show—Cadillac stated that the model would be the first of four new crossovers from the brand. Speaking to Cadillac chief marketing officer Uwe Ellinghaus, however, he suggested that the number could be even higher, with the XT5 getting four additional siblings. This represents even more new crossovers than had previously been discussed by the brand

Cadillac Chief Marketing Officer Uwe Ellinghaus

Of course, crossovers in general, and luxury crossovers in particular, have been white-hot of late. As Ellinghaus notes: “Crossovers have accounted for all of the growth in the luxury segment,” he says, “not sedans.” In the Cadillac lineup, the XT5 replaces the SRX—an aging machine that is nonetheless the brand’s bestseller, owing to the fact that it’s a crossover.

All the Many Crossovers

But whereas Lexus has two such vehicles (the NX and RX), Audi (Q3, Q5, and Q7) and Lincoln (MKC, MKX, MKT) have three, and Mercedes-Benz (GLA, GLC, GLE, GLE coupe, and GLS) and BMW (X1, X3, X4, X5, and X6) each field five crossovers—Cadillac has only one. Clearly, there’s some white space in the lineup.

Ellinghaus confirms that the XT5 will be bracketed by a larger, three-row model and a smaller, compact entry. And the fourth? “We can envisage an even more compact [model] but we can also envisage something between a three-row SUV/crossover-derived car and the Escalade,” he says.

“The Escalade is so huge, and it’s different because it’s truck-based, that if the growth of the SUV segment continues, I really think there is space for maybe even two smaller cars than the XT5 and maybe even two larger ones.” So five in total.

“But that’s the ultimate range that I can envisage—far out. The first step is the smaller one, and that’s because compact SUVs are hot. Look at the X1, look at the Q3. And then the second priority is to close the gap between XT5 and Escalade.”

2016 Cadillac ELR

Trouble for Tesla?

One car that apparently will not be replaced is at the other end of the lineup: the plug-in-hybrid ELR coupe. Asked if Cadillac will have a dedicated green car going forward, Ellinghaus responds: “No. The very opposite. We need to walk away from a dedicated model. It needs to be a standard, in our regular lineup. The CT6 is the first Cadillac that has a plug-in-hybrid electric version, and this is the way forward.”

What about brands who sell only green cars? “You will no longer be able to create an entire brand philosophy, like Tesla did, around electro-mobility,” asserts Ellinghaus, “because it will become something that is standard. All automotive manufacturers are working on it, or need to have it to meet the CAFE legislation. I think it will end up where all-wheel drive is today. Some [buyers] that want it tick the box.”



“And that’s why electro-mobility is no longer something you can build a brand upon. It’s not a differentiator, it’s an entry ticket into the luxury segment.” Well, that and crossovers. Lots and lots of crossovers.

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