Cadillac and Lincoln-Mercury in Price War?

08/19/96

Reuters reported that General Motor's Cadillac division has responded to recent Lincoln-Mercury price cuts by knocking between $2,500 and $4,000 off the prices of 1997 Seville and El Dorado models.

The cuts range from a 5.9 percent ($2,600) reduction in the price of an El Dorado Touring Coupe to 9.1 percent ($4,000) off Seville SLS prices, and come only two days after Ford's announced the Lincoln-Mercury price cuts. Ford Motor Company's Lincoln-Mercury division said it would reduce Lincoln Continental prices by 10.6 percent ($4,520) and Lincoln Mark VIII prices by 5.9 percent ($2,350).

Both Ford Models, plus the Lincoln Town Car now start at $37,950. Cadillac's Seville SLS will now start at $39,995, while it's Seville STS will start at $44,995 (a reduction of 7.4% or $3,600). Cadillac's El Dorado Touring Coupe will now start at $41,395, while its El Dorado Coupe will start at $37,995 (a reduction of 6.2 percent or $2,500).

Cadillac announced its price cuts a few weeks after it announced 1997 prices. The division did not alter the 1997 price of $36,995 for its best selling model, the DeVille Sedan.

Paul Dever -- The Auto Channel