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Discussion Starter #1
I wonder if I could get an XLR-V at close to invoice price if sales are so slow! =)

http://www.autoweek.com/news.cms?newsId=101909

Last summer customers waited in line to buy Cadillac's hot XLR. Now dealers are waiting to sell them.

GM has reduced XLR production at its Bowling Green, Ky., plant from 23 vehicles a day to 12, union officials say.

As of Feb. 1, Cadillac had a 200-day supply of the $76,200 vehicle -- about 1,700 units.

Cadillac once hoped to sell 6,000 XLRs annually. But through 18 months, Cadillac has sold just 4,744.

As recently as last August, Cadillac executives wanted to increase production of the XLR -- Cadillac's halo car -- because the division couldn't meet demand. David Leone, chief engineer for the Cadillac Sigma prestige vehicle architecture team, said then that dealer orders were "five times what we can build."

Leone said production would increase before the 2006 model year. But those plans have changed.

Says GM spokesman Stefan Weinmann: "We're very careful to make sure that on a brand like Cadillac, the inventory levels are more closely managed than some other brands in order to maintain its cachet." GM has never offered sales incentives on the XLR and has no plans to do so.

Eldon Renaud, president of UAW Local 2164, says there will be no layoffs at the Bowling Green plant, which employs 1,015 workers. He said GM trimmed production Feb. 8. Output of the Chevrolet Corvette, built at the same plant, will remain unchanged.

The cutback could be painful to some suppliers.

Meridian Automotive Systems Inc. of Dearborn, Mich., will build just half of the molded door panels it expected for the XLR. Idle capacity is expensive, but Meridian cannot use that equipment for other customers because at some point GM may resume higher XLR production.

Production slowdowns also make it tough for suppliers to recoup their costs.

In December 1999, HP Pelzer Automotive Systems Group of Troy, Mich., won the contract to supply acoustic and flooring material for the Chevrolet Malibu and Pontiac Grand AM -- on the condition that it also take on the much smaller XLR and Corvette programs.

"It's a pain in the neck," says an industry executive familiar with that contract. "The tools you put in place cost more than the parts you sell" for the smaller programs, the executive said.

Adds the CEO of one XLR supplier, "We're all in the doldrums."

Jacques Moore, owner of Moore Cadillac in Richmond, Va., admits XLR demand has slowed, but adds: "It's important to remember it's a seasonal product."

Moore says an oversupply of XLRs is not good.

"The last thing we want to do is have a couple of dealers with three, four or five on the ground and then they need to have a sale," says Moore. "That would be the wrong idea."
 

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If the numbers above are correct, you'd have to think the XLRs being produced now are made with a little more care, more slowly, no?
 

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Discussion Starter #3
No, they're probably just running half shifts or something.

Honestly I can't understand why they're not selling like hotcakes.

I test drove an XLR again last night and it was superb.

I'd like to buy one now, but I know I'll want the XLR-V the day it's released (if the price is right).

I wonder if I can find anyone where I can take over the last 12 months of their lease or something. =)

After driving the leftover 2004 XLR last night the dealer all but begged me to buy it, and offered to take $10,000 off if I would buy it. :\

I hope I can arrange the same type of deal on an XLR-V, that car will be amazing...
 

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If they have a "200 day supply" on hand, they would need to completly shut down the plant for a year to create the same demand they had when we inital buyers stood in line.
I'm afraid prices will need to get a whole lot softer to clear the inventories before they get any more "valuable" :(
 

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What is happening with the XLR is the same thing you see happen with all High-End limited production cars. Once the people who "have to have it" have been satisfied, sales slow considerably. Look at the MB SL series. You can find lots of 1 year olds and new ones deeply discounted. WHy? For one, the people that can afford these cars tend to buy new ones and ONLY one. Therefore, to get the price down to where a "normal" buyer would purchase one is considerable.

Also, there just are not that many people willing to purchase a 76K (closer to 80 with taxes) car that is for all purposes a toy to be driven for fun.

I recently bought a S55 AMG. It had only 1000K miles on it. The window sticker was over 125K and this is a rare car. The car is a 2004 model that I bought in 2004 as a demo (the dealer owner drove it) for less than 95K. That's a 30K discount for the 1000K miles. Why? Because most people who can afford this car want a new one no matter the savings. Therefore, to get the price down to where I would buy it was considerable. You will see the same thing with the XLR. The bottom line is that if you are concerned about the price or the falling prices, don't buy this car (or any for that matter). THis car is for people who can enjoy it and don't car a whole lot about resell.
 

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GM is having trouble...

...on all fronts right now. I believe BMW is also struggling. In fact, my prediction is that all car manufacturers will be in decline until fuel prices moderate.

A buck fifty over the summer? Probably. Should ease somewhat by fall, however. <<<Error: Should say two bucks fifty!

Don't blame us oil patch guys this time. We're makin' holes as fast as we can.

The problem is US refining capacity and all these boutique fuels that have been legislated by various localities. Starting and stopping refineries to run small batches is inefficient - and virtually ineffective. (It makes the politicians and environmentalists feel good, however.) Plus there have been no new refineries built in decades.
 

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Texas

Gas only $1.50 in Texas now??? Guess its because you have no taxes.

Discount regular in Northern VA is $2.05 and I know DC and MD are 15-20 cents higher.

I'm thinking it might be as high as $2.50 here come June.
 

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Retrograde...$1.50 per gallon

...that would be a bargain, eh? Slip of the finger.

Correction: Two-bucks fifty over the summer. You guys don't miss a trick.

Last tank, I paid $2.05 for regular (for the Escalade) in Conroe.

I once paid $.17/gal out in West Texas during a "gas war" in 1967. That expression is now archaic. But I was making $1.40/hr and at the time that was minimum wage.

Prevailing price at that time for regular was about a quarter.

Nowadays, in Texas we pay .$20/gal just in gasoline tax. I think the California guys pay $.18, and in DC you pay about $.20, Eyedoc.

Georgia has the cheapest tax rate at $.075/gal.
 

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23 to 12 to 8. . .

I found this thread while searching for something else, pretty interesting--although sad:

Floyd

I wonder if I could get an XLR-V at close to invoice price if sales are so slow! =)

http://www.autoweek.com/news.cms?newsId=101909

Last summer customers waited in line to buy Cadillac's hot XLR. Now dealers are waiting to sell them.

GM has reduced XLR production at its Bowling Green, Ky., plant from 23 vehicles a day to 12, union officials say.

As of Feb. 1, Cadillac had a 200-day supply of the $76,200 vehicle -- about 1,700 units.

Cadillac once hoped to sell 6,000 XLRs annually. But through 18 months, Cadillac has sold just 4,744.

As recently as last August, Cadillac executives wanted to increase production of the XLR -- Cadillac's halo car -- because the division couldn't meet demand. David Leone, chief engineer for the Cadillac Sigma prestige vehicle architecture team, said then that dealer orders were "five times what we can build."

Leone said production would increase before the 2006 model year. But those plans have changed.

Says GM spokesman Stefan Weinmann: "We're very careful to make sure that on a brand like Cadillac, the inventory levels are more closely managed than some other brands in order to maintain its cachet." GM has never offered sales incentives on the XLR and has no plans to do so.

Eldon Renaud, president of UAW Local 2164, says there will be no layoffs at the Bowling Green plant, which employs 1,015 workers. He said GM trimmed production Feb. 8. Output of the Chevrolet Corvette, built at the same plant, will remain unchanged.

The cutback could be painful to some suppliers.

Meridian Automotive Systems Inc. of Dearborn, Mich., will build just half of the molded door panels it expected for the XLR. Idle capacity is expensive, but Meridian cannot use that equipment for other customers because at some point GM may resume higher XLR production.

Production slowdowns also make it tough for suppliers to recoup their costs.

In December 1999, HP Pelzer Automotive Systems Group of Troy, Mich., won the contract to supply acoustic and flooring material for the Chevrolet Malibu and Pontiac Grand AM -- on the condition that it also take on the much smaller XLR and Corvette programs.

"It's a pain in the neck," says an industry executive familiar with that contract. "The tools you put in place cost more than the parts you sell" for the smaller programs, the executive said.

Adds the CEO of one XLR supplier, "We're all in the doldrums."

Jacques Moore, owner of Moore Cadillac in Richmond, Va., admits XLR demand has slowed, but adds: "It's important to remember it's a seasonal product."

Moore says an oversupply of XLRs is not good.

"The last thing we want to do is have a couple of dealers with three, four or five on the ground and then they need to have a sale," says Moore. "That would be the wrong idea."
 
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