Business Services Industry

Chicago Tribune Transportation Notes Column.

Knight Ridder/Tribune Business News, February, 2002

By Jim Mateja, Chicago Tribune Knight Ridder/Tribune Business News

Feb. 3--So why does General Motors offer a $40,000 Chevrolet Avalanche sport-utility vehicle/pickup and a $50,000 Cadillac Escalade EXT sport ute/pickup? "We're targeting two different customers with the EXT and Avalanche," said Susan Docherty, Escalade brand manager. "Avalanche targets 35- to 55-year-olds with incomes of $75,000; EXT targets 35- to 55-year- olds with incomes of $125,000 plus."

--The Escalade EXT and Avalanche are built in the same plant in Mexico. Avalanche is targeted at output of 100,000 plus units annually, and Docherty said the EXT will settle for about 12,000 to 14,000, though more can be built if needed. "With EXT at $50,000, we don't see it selling 30,000 units...

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