Wednesday, October 16, 2013

Cadillac plug-in for January debut, in direct combat with Tesla set

DETROIT, Oct 11 Reuters)-General Motors co will go head with head electric car maker Tesla Motors Inc from January, when a plug-in-brand in the retail version of its luxury Cadillac.

GM said on Friday its 2014 Cadillac ELR-plug-in Coupé a starting price of almost $76,000 including shipping - ways in the competition with the model s federal tax credits have similar favorable Tesla could reduce the cost of the ELR for consumers up to $7,500.

GM said the two-door ELR available at national level, in contrast to the Chevrolet Volt is the first in selected markets was rolled out. Similar to the Volt ELR an electric range of about 35 km on the highway and a gasoline engine for longer range, indicating it has golf practice range a total of more than 300 miles.

ELR will bring GM one of the best selling pure electric cars in direct competition to Tesla's all-electric model S. The four door model S starts at $70,000.

Since the price cuts, the GM and other automakers have set up for their electric cars in recent months, analysts are unsure whether that has U.S. automakers realistic expectations for the new Cadillac. GM cut the Volt price by $5,000 to $35,000 in August.

"ELR makes a much bolder luxury and style statement than the Volt," said Kelley Blue Book analyst Karl Brauer. "This certainly justifies a higher price for the ELR's point, but Cadillac cannot deny the pricing reality, which we with other advanced hybrid and electric vehicles seen."

"Consumers have traditionally shied away from the price premium that require these cars generally, non-hybrid vehicles, and that has forced a wave of price cuts," he added. "Will a $75,000 ELR break through this scheme? Cadillac is no doubt just the success of equally cheap Tesla and hopes the auto follow. "But I don't know whether this level of enthusiasm and prices will be transferred to the ELR."

ELR is probably only the first step for GM in luxury electric cars offer. Doug Parks, the Deputy for global product development, has in the last month that GM would do look like other EVs in the $Giganet price range.

GM previously said ELR overseas, including the important Chinese market, will be sold later in the year 2014. Executives of the company have stressed that ELR a low sales volume will be auto.

Production of ELR will most likely start this year at the company Detroit-Hamtramck assembly plant, where is the Volt. Introduction of the ELR is an expected product Flash by GM luxury brand his Cadillac as the Detroit company could double in the next four years.

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