Cadillac to slash ELR electric car price on 2016 model by $10,000

GM Cadillac ELR electric car
© GM

The Cadillac ELR is kind of the answer to the question: What if a Volt and a Caddy had a baby? It's GM's ambitious attempt to compete with Tesla in the high-end of the market where performance and luxury matter more, and while the ELR does have a lot of things going for it, it's starting to look like pricing might have been too high.

Cadillac ELR plug-in hybrid© GM

At $75,995, which drops to $68,495 after the $7,500 federal tax credit, the ELR had quite the sticker shock. That's probably GM is doing a significant price cut for the 2016 model year, dropping the MSRP to $58,495 after incentives, or $65,995 before them. Still high compared to the average car, but definitely more competitive against other vehicle in that category.

In practice, the ELR is already selling around that point. According to TrueCar, a company that tracks that kind of thing, Cadillac dealers are already slashing prices by about $11,000 on average on the ELR. Bloomberg even reports that some dealerships around New York are selling the ELR for just under $50,000, "a whopping 35 percent discount from its sticker price."

This being Cadillac's first electric car (or more precisely, a plug-in hybrid), the company has a lot to learn about what the right pricing is, how to train dealers to sell it against its more conventional vehicles, etc.

Interestingly, that Bloomberg article shows that the BMW i8 is selling above its MSRP on average. It's not clear if it's because demand is strong or because supply is so small, though.

Cadillac ELR plug-in hybrid© GM

Under the hood, the centerpiece of the ELR is the T-shaped lithium-ion battery, like in the Volt. It can store 16.5 kWh of power, giving the plug-in Cadillac 35 miles (56 km) of 100%-electric driving range. After that, the 1.4-liter gasoline engine kicks in and powers the car. It will take about 4.5 hours to fully recharge the battery using a 240V outlet.

Total output for the drivetrain is 207 hp (154 kW) with an impressive 295 lb.-ft (400 Nm) of instantly-available torque. It's this torque that makes electric vehicles so much fun!

The Cadillac ELR will meet California's Enhanced AT-PZEV emission standard, giving it access to high occupancy vehicle lanes. Always a nice perk.

The battery, which you can see in blue below, will be covered by an eight-year/100,000-mile warranty.

Here's the ELR playing in the snow:

Via Bloomberg

Cadillac to slash ELR electric car price on 2016 model by $10,000
Dealers are already heavily discounting it to try to spur slow sales.

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