A look inside the new Cadillac Escalade [E+ via GettyImages]
It goes down in the GM... and up in the earnings. GM drove home $3B in profit for the January to March quarter, up from ~$300M in the same quarter last year. It was nearly a record for the OG carmaker, despite a global chip shortage that's been shutting down car factories.
Law & Order: SUV... GM's monster profit was also fueled by redesigned SUVs, including the Chevy Suburban and the Cadillac Escalade. GM took a few pages from Delta — it's going full "Business Class on Wheels" with these models.
GM smells "price insensitivity" signals... Price sensitivity = the degree to which a product's price affects purchasing decisions. Price insensitivity = the opposite. GM knows that when you roll into the dealership asking for a $70K Escalade, you could probably pay $90K to upgrade. Extra money for dealers means GM can mark up prices – and boost its profit. Price sensitivity is why GM has only three sedans left on the US market (that Chevy Malibu isn't a profit puppy).