Cadillac Releases New Escalade No One Will Buy

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By Douglas A. McIntyre Published
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The Cadillac division of General Motors Co. (NYSE: GM) launched a new version of its Escalade super-SUV. And the release was done with great fanfare, a peculiar effort since no one buys the vehicle.

The 2015 Escalade, according to Cadillac, has dozens of improvements, from a 6.2L V-8 engine to an “advanced system for connectivity and control” that features “state-of-the-art voice recognition with touch controls common with the world’s most popular tablets and mobile devices” to a “Driver Awareness package [that] includes Forward Collision Alert, Lane Departure Warning System, and the patented Safety Alert Seat” and even an interior that includes “Real wood combined with premium cut-and-sewn materials and sueded accents.”

Too bad Cadillac only sold 1,754 Escalades in September.

The launch is part of a decades-old system, created by car companies, that releases an endless set of new cars with a separate event for each of them. Supposedly, this keeps a drum beat of good public relations for the auto buying public, employees and even investors. However, very few of these groups are fooled. It is one thing to revamp Ford Motor Co.’s (NYSE: F) F-150 pickup, the best-selling vehicle in the United States. It is another to pretend that the Escalade will ever sell more than a few hundred units a month, no matter how slick and advanced its interior and exterior are.

The luxury division of GM’s description of the new SUV is “Craftsmanship Defines All-New 2015 Cadillac Escalade.” Cadillac can put it on showroom floors, offer special discounts and lease packages, and even negotiate sales well below the sticker price. No matter. The Escalade will sit on dealer lots with barely a buyer to look at them. The launch event will have happened a month before. And Cadillac will have wasted a lot of money trying to promote a product that never sold particularly well in any of its incarnations.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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