This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cadillac ELR vs. Chevrolet Volt 2.0

NEW YORK ( TheStreet) -- General Motors (GM - Get Report) recently introduced the Cadillac ELR, which is a 2-door coupe that builds on GM's current Chevrolet Volt. It enters production in the second half of 2013; the first deliveries are expected no later than January 2014.

It is now clear that the Cadillac ELR is not the Chevrolet Volt 2.0 under the skin. The changes, in terms of the drivetrain, from the current Volt are simply relatively minimal. Basically, there was some relatively modest tinkering in terms of how the battery interacts with the main electric motor, so as to squeeze out a little more power, that's all. But really all the essential parts of the current Volt drivetrain remain the same in the ELR.

The reason you want an ELR over the current Volt has to do with styling and an upgraded, plush interior of the highest caliber. The ELR loses back-seat space, and perhaps some luggage flexibility, but gains huge 20-inch wheels and spectacular "Bat-mobile" looks.

Cadillac has yet to announce how much it will charge for this new beauty, but it will surely be more than $50,000, especially considering that it looks as if it will only come one way: Fully loaded. The ELR will be in a class of its own in the market, and that gives it some pricing power. Cadillac hopes to sell 5,000 to 10,000 per year, and the car will be made on the same assembly line as the Chevy Volt.

So what does this mean for the Chevy Volt 2.0? It is now clear that the Volt 2.0 will be something completely different than the Cadillac ELR.

What is the No. 1 gating factor delaying the release of the Volt 2.0? The cost. Its battery, for one, costs several thousand dollars.

GM's chief objective with the Volt is to trim at least $4,000 off the cost of the Volt's battery. This will be possible -- the question is just when, and which supplier will help GM do it. Surely GM has been working on this for years already, the Volt 1.0 having entered production in November 2010, after engineering started in 2006-07.

Once GM has decided on this new lower-cost battery, the rest of the car is relatively easy to put together around it; it takes typically around 2-3 years. At this point, it's not yet known whether the Volt 2.0 will enter production in 2014 or if it will take all the way to 2015.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GM $35.97 0.00%
AAPL $130.28 0.00%
FB $79.19 0.00%
GOOG $532.11 0.00%
TSLA $250.80 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs