GM Commits To New Cadillac Escalade, Prices Expected To Rise Significantly

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2009 Cadillac Escalade

2009 Cadillac Escalade

With GM’s announcement that it will be investing more than $331 million in its Arlington assembly plant in Texas, home of its ‘GMT900’ full-size SUVS such as the Chevrolet Tahoe and Suburban, GMC Yukon and the Cadillac Escalade, the General has essentially secured the future of the road giants.

A few years back there were rumblings that GM was looking to axe its Cadillac Escalade SUV and replace it with a crossover model based on the Lambda platform, a plan devised in response to the financial crisis at the time and a spike in world oil prices.

However, it now looks as though GM will build both a seven-seat luxury crossover based on the Lambda platform for Cadillac as well as a next-generation Escalade. The new crossover will fill the price gap between the $34,430 Cadillac SRX and the $63,160 Escalade, though we could see prices rise significantly going into the future.

At the announcement of the Arlington investment, GM boasted that its new generation of full-size SUVs will offer better fuel efficiency than ever before without sacrificing the features and functionality we’ve come to expect.

This means that the new Cadillac Escalade, due in time for the 2014 model year, will likely carry a cost premium in order for it to meet the latest regulatory fuel economy requirements. Advanced engines and lighter materials will likely see production costs rise.

Additionally, the expansion of the Arlington facility could also see GM start production of a flexible-bed Cadillac Escalade EXT if the pickup model is offered with the next-generation of the Escalade.

[GM via TheCarConnection]


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Comments (5)
  1. Even though I still see them around NJ quite frequently it is more because the resale value has gone down due to fuel costs and they get snatched by people who otherwise could not afford one. That is not a reason to continue these large vehicles unless for commercial/government use! Tone it down GM! It's about what you stand for as a car company not demand! Right?!!

  2. To be Honest, the Escalade needed to be dumped LONG ago. GM has way to many "full-sized trucks" in its production.

  3. only way I see this being economically feasable is if they build everyone of them with a turbo v6 hybrid powertrain.... I just dont understand the point of a v8 that gets 14 mpg when gas is $4.50+... things have not changed much @ GM... they still run there company off of an old world legacy thats dead and in the ground... Every one else is changing but them...

  4. Contrary to popular opinion, there will always be a desire and a requirement for full size trucks and SUVs (even luxury models), especially in America where everyone wants to be "king" of the road. People that have the money don't care how much it costs to fill their land yacht, just as long as they can uphold their status, and or, get the job done. The people that require full size for hauling probably won't buy an Escalade, but the need for these vehicles still exists at the upper and lower end of the market.
    Should GM limit their number of full sized offerings, then risk losing some of their market share to Ford and Ram?
    If you don't like it, then don't buy them. Certainly there will be people that will pay the premium to own them.

  5. i would like to see an escalade that could compete with range rover in the 85-125k range and have a large crossover in the current price range

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