- Jan 7, 2002
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The 2007 Cadillac Escalade SUV bowed Wednesday with a nod to the Hollywood crowd that helped make a name for the vehicle.
At an event on Hollywood's chic Rodeo Drive, General Motors Corp. showed off the redesigned sport utility in hopes of keeping support from the A-list even as interest fades in large SUVs.
"When you're selling luxury vehicles, you're not just selling transportation," Cadillac General Manager Jim Taylor said of the Escalade's Hollywood debut. "You're selling fashion and you're selling image."
GM has a list of new features to plug on the 2007 Escalade, including a new V8 engine, added safety features and an improved, unique interior cabin.
The Escalade and siblings Escalade ESV and EXT attract the youngest Cadillac brand buyers.
Though analysts praise the vehicle as better than its predecessor, GM will face challenges introducing a large SUV at a time when the market appears to be cooling toward them.
But GM is looking to the new Escalade as well as redesigned versions of the GMC Yukon and Chevrolet Tahoe to revive its large SUV sales, which have plummeted because of persistently high gas prices, increased competition from foreign automakers and a shift in consumer tastes toward smaller, more fuel efficient vehicles.
While GM acknowledges that sales of large SUVs may never again reach their 1-million a year peak during the 1990s, the automaker is determined to remain the dominant player in the highly-profitable segment. GM now controls more than 60 percent of large SUV sales.
The new GM sport utilities are designed to widen that lead, and the 2007 Escalade will be key to that effort.
Landing in showrooms early next year, the new Escalade is by all measures a better vehicle than its predecessor. Its 6.2-liter V8 engine makes 403 horsepower and achieves 19 miles per gallon on the highway, up from 17 miles per gallon with the 6.0-liter V8 it replaces. Its luxurious ebony and cashmere interior is not shared with any other GM sport utility.
In addition, it has a new roof-mounted head curtain airbags that protect passengers in a rollover accident and a stiffer frame to mitigate the impact of crashes. "They've hit the bull's-eye from what I've seen," said Jim Sanfilippo, an industry analyst with AMCI Inc. in Detroit. "My honest assessment is the prospects are very bright for this vehicle."
The Escalade, which had its last major redesign for the 2002 model year, has been an iconic vehicle for GM. With its rich, gilded appearance and decked-out interior, it is coveted by hip-hop artists, professional athletes and other celebs.
Many musical performers have bought Escalades since the vehicle debuted in 1999 as Cadillac's first SUV and as the first vehicle to feature the brand's edgy, bold, new styling. Among the reported buyers were Pink, Brandy and Tyrese.
Several, such as Ludacris and Jennifer Lopez, have even included the Escalade in music videos and song lyrics. Indeed, Ludacris' song "Get Back," from his current album "The Red Light District," includes a takeoff on a children's song: "It's the knick-knack-patty-whack still riding Cadillacs."
In an effort to maintain the vehicle's buzz, GM over the last two years has sought out celebrity input on the Escalade's redesign. Two months ago, it put the final design in front of high-profile taste makers to get their thoughts on the changes. And when it came time to introduce the vehicle, GM again called on Hollywood.
Oscar-winning actor Adrien Brody hosted the Wednesday debut party held in a rented storefront on Rodeo Drive. Stars ranging from party girl Paris Hilton to hip-hop artist Fat Joe were expected to attend.
But whether the buzz will be enough to overcome challenges facing large SUVs remains to be seen.
Last month alone, Escalade sales were down 49 percent and are down 13.2 percent for the year, according to Autodata Corp.
Chevy Tahoe and GMC Yukon sales are also down, which has contributed to GM's loss of more than $4 billion in North America this year.
Adding more features and improvements to GM's large SUVs may help woo buyers but may not help GM's bottom line, especially if demand for the vehicles continues to shrink and rebates keep rising, said Goldman Sachs analyst Robert Barry in an August report after viewing the automaker's new SUVs.
"We think that GM will continue to dominate in the large/luxury SUV segment for some time and that the new products will help drive this dominance," Barry said. "But a shrinking segment means GM will have a larger share of a smaller pie." http://www.detnews.com/2005/autosinsider/0511/10/C01-377887.htm
At an event on Hollywood's chic Rodeo Drive, General Motors Corp. showed off the redesigned sport utility in hopes of keeping support from the A-list even as interest fades in large SUVs.
"When you're selling luxury vehicles, you're not just selling transportation," Cadillac General Manager Jim Taylor said of the Escalade's Hollywood debut. "You're selling fashion and you're selling image."
GM has a list of new features to plug on the 2007 Escalade, including a new V8 engine, added safety features and an improved, unique interior cabin.
The Escalade and siblings Escalade ESV and EXT attract the youngest Cadillac brand buyers.
Though analysts praise the vehicle as better than its predecessor, GM will face challenges introducing a large SUV at a time when the market appears to be cooling toward them.
But GM is looking to the new Escalade as well as redesigned versions of the GMC Yukon and Chevrolet Tahoe to revive its large SUV sales, which have plummeted because of persistently high gas prices, increased competition from foreign automakers and a shift in consumer tastes toward smaller, more fuel efficient vehicles.
While GM acknowledges that sales of large SUVs may never again reach their 1-million a year peak during the 1990s, the automaker is determined to remain the dominant player in the highly-profitable segment. GM now controls more than 60 percent of large SUV sales.
The new GM sport utilities are designed to widen that lead, and the 2007 Escalade will be key to that effort.
Landing in showrooms early next year, the new Escalade is by all measures a better vehicle than its predecessor. Its 6.2-liter V8 engine makes 403 horsepower and achieves 19 miles per gallon on the highway, up from 17 miles per gallon with the 6.0-liter V8 it replaces. Its luxurious ebony and cashmere interior is not shared with any other GM sport utility.
In addition, it has a new roof-mounted head curtain airbags that protect passengers in a rollover accident and a stiffer frame to mitigate the impact of crashes. "They've hit the bull's-eye from what I've seen," said Jim Sanfilippo, an industry analyst with AMCI Inc. in Detroit. "My honest assessment is the prospects are very bright for this vehicle."
The Escalade, which had its last major redesign for the 2002 model year, has been an iconic vehicle for GM. With its rich, gilded appearance and decked-out interior, it is coveted by hip-hop artists, professional athletes and other celebs.
Many musical performers have bought Escalades since the vehicle debuted in 1999 as Cadillac's first SUV and as the first vehicle to feature the brand's edgy, bold, new styling. Among the reported buyers were Pink, Brandy and Tyrese.
Several, such as Ludacris and Jennifer Lopez, have even included the Escalade in music videos and song lyrics. Indeed, Ludacris' song "Get Back," from his current album "The Red Light District," includes a takeoff on a children's song: "It's the knick-knack-patty-whack still riding Cadillacs."
In an effort to maintain the vehicle's buzz, GM over the last two years has sought out celebrity input on the Escalade's redesign. Two months ago, it put the final design in front of high-profile taste makers to get their thoughts on the changes. And when it came time to introduce the vehicle, GM again called on Hollywood.
Oscar-winning actor Adrien Brody hosted the Wednesday debut party held in a rented storefront on Rodeo Drive. Stars ranging from party girl Paris Hilton to hip-hop artist Fat Joe were expected to attend.
But whether the buzz will be enough to overcome challenges facing large SUVs remains to be seen.
Last month alone, Escalade sales were down 49 percent and are down 13.2 percent for the year, according to Autodata Corp.
Chevy Tahoe and GMC Yukon sales are also down, which has contributed to GM's loss of more than $4 billion in North America this year.
Adding more features and improvements to GM's large SUVs may help woo buyers but may not help GM's bottom line, especially if demand for the vehicles continues to shrink and rebates keep rising, said Goldman Sachs analyst Robert Barry in an August report after viewing the automaker's new SUVs.
"We think that GM will continue to dominate in the large/luxury SUV segment for some time and that the new products will help drive this dominance," Barry said. "But a shrinking segment means GM will have a larger share of a smaller pie." http://www.detnews.com/2005/autosinsider/0511/10/C01-377887.htm
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