The People Want More GM Crossovers

Demand for Acadia and XT5 is pretty great.

General Motors is realizing huge sales gains from the new GMC Acadia and Cadillac XT5 crossovers. Increased demand for both of GM’s mid-sized crossovers has seen the automaker recently announce it would increase production for the pair at the company’s Spring Hill Manufacturing Plant in Tennessee. With the context of Ford’s decision to focus on crossovers almost exclusively in North America, along with the steady rise of the crossover–to the tune of 48.6 percent of the US auto market–the production ramp makes sense.

Just look at the numbers, the XT5 has emerged as Cadillac’s top-selling model in literally every market where the company sells it, plus, it’s the second-best selling vehicle in its class in the US. First quarter demand for the XT5 is already up 10 percent compared to last year, while the Acadia is up 15 percent compared to the same point last year. With the additional shift added to the production line, GM will add 700 jobs to the plant’s workforce. This announcement is in addition to a $294 million investment for another new Cadillac crossover and plant upgrades that were announced in late 2017. Spring Hill will also build the new Holden Acadia for export to Australia and New Zealand.

“This shift addition is not only an indication of the popularity of these GMC and Cadillac crossovers with customers but is testament to the great work being done by the Spring Hill Assembly team,” said plant director Ken Knight. “Their commitment to building quality vehicles is visible every day. It also demonstrates the strong spirit of teamwork between GM and our UAW partners, as we work together to satisfy our customers.” Spring Hill has had a long and complex history. It used to be the assembly point of all Saturn models, but after GM shuttered the brand post-bankruptcy in 2007, the plant sat idle for a full year.

Ten years ago the plant reopened to produce GM’s large crossovers, including the Chevrolet Traverse, before beginning production of the Acadia and XT5 in 2016.

Is $10,000 Off An Escalade Enough To Keep People Away From Navigators?

The Lincoln Navigator is catching up, but Cadillac isn't giving in.

The new Navigator is a fresh entry into the full-size SUV segment, and Lincoln is selling them faster than it can make them. In fact, the Navigator is so good that GM has to offer discounts in order to stay competitive. GM is no stranger to big discounts, so the company is offering up to $10,000 to keep Escalade owners from switching to a Navigator. A nationwide $10,000 deal applies to lessees of all 2016 model Escalades, while owners are being offered a $7,500 discount - this according to Automotive News.

These discounts are valid through May 31 according to a GM memo. Jim Cain, a GM spokesperson, referred to the discount as "an exclusive private offer" designed to "keep people in the family." Cadillac has plenty of reasons to want to keep its customers from switching to Lincoln. The Escalade isn't a particularly high volume model, selling just 22,994 units in 2017, but it produces around $1 billion in annual profit for GM. The Navigator is still being outsold by the Escalade, but sales have increased by 63% so far in 2018. In fact, dealerships have been struggling to keep up with demand, as Navigators average just 10 days on the lot before being sold.

GM's plan seems to be working, because Escalade sales are up and the average transaction price has been rising slightly. We still prefer the new Navigator, but $10,000 off a new Escalade could be enough to sway our decision.