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Cadillac SRX Plug-In Hybrid Gets Plug Pulled: Report


2012 Cadillac SRX

2012 Cadillac SRX

Citing high production costs, a GM source revealed that the automaker had cancelled plans to build a plug-in hybrid version of the popular Cadillac SRX crossover.

Back in January, GM CEO Dan Akerson indicated that launch of a plug-in hybrid SRX was likely, and that he expected electrified vehicles to make up 10 percent of GM’s production in as few as 10 years.

Since then, GM’s had a change in strategy, withdrawing their application for $14.4 billion in low-interest loans from the Department of Energy. The loans would have been used for upgrading plants to build fuel efficient vehicles (like the plug-in hybrid SRX), but GM wants to move away from government funding and the negative connotations it brings with it. Thanks to the company’s economic turnaround, GM executives are confident that required factory updates can be self-funded.

The plug-in hybrid SRX had already begun development testing at GM’s Milford proving ground when the project was cancelled.  Those close to the development feared that the vehicle could only be sold at a substantial loss, negating any financial benefit the automaker would have received from boosting their corporate average fuel economy.

GM already has the Chevrolet Volt extended-range electric vehicle (or series hybrid, if you prefer), and is expected to launch a small minivan using the Volt’s powertrain for the 2013 model year.

[Detroit Free Press]

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Comments (3)
  1. Sounds like Team GroupThink is back at GM. Take an idea that could differentiate a brand in the market -- then let the ducks with MBAs peck it to death.
    Look at the Cien. Stunning, breakthrough design. An Audi R8 -- years before the R8 came out. What happened? Team GroupThink got involved -- and you got the XLR instead. More money than the Z06 Corvette it was based on -- but not as fast or as good handling.
    They sold maybe 3 of them.
     
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  2. @Michael, I really think it came down to cost on this one. Chevy's received a lot of flak for the price of the Volt, yet rumor has it that each $41k sale is at a loss. Would buyers have signed up for a Caddy SRX Plug-In Hybrid if it cost $15k more than the gas version? Probably not.
     
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  3. Kurt, that's where Team GroupThink screws up. The only reason the technology for the Volt's in a Chevrolet instead of a Cadillac in the first place is because somebody thought GM had to go head to head against Toyota and the Prius. Why? Cadillac, when it was truly the standard of the world, was known for its innovations. And those innovations weren't launched on Chevrolets first. They were breakthrough -- and only available to people with money. So now GM's trying to attract people with the means to plunk down big dollars to Chevrolet dealer -- who are accustomed to jamming people into Cobalts or Silverados instead of treating them like kings. It's just stupid all the way around.
     
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