GM money issues to delay Cadillac Converj
January 20, 2009 by Matt Brogan
The show stopping Converj concept was one of the highlights of last week’s Detroit Motor Show, and was designed with production in mind, but plummeting sales may force GM to focus on other projects first.
The sleek two door shares many of its underpinnings with the production ready Chevrolet Volt, but given Cadillac’s limited market share and niche segment, the Converj could now be postponed indefinitely.
GM vice-chairman Bob Lutz said of the Converj “First we have to prove to ourselves that we have the money. And then that it’s a high enough priority to displace something else, and that we can actually make money on the vehicle, and that there is potential customer interest and so forth. We haven’t done any of that work yet.”
While all those factors are still question marks at this time, it is likely GM wouldn’t have much of a problem making a profit on a production version of the Converj. Unlike the target market for the upcoming Chevrolet Volt – which shares the Converj’s Voltec electric drive system – potential customers for the Converj wouldn’t be as price sensitive, allowing GM to build a profit into the car’s MSRP. With the Volt expected to list from $40,000, it wouldn’t be all that big of a leap to ask customers to pay $50,000 for a Cadillac version.
However in this tough economic climate, GM’s money would be much better spent on volume models rather than niche segments that won’t see sales over 10,000 units for years to come.
Print it: 
I think the Volt has a real chance of being this decade’s Mustang – i.e. a sleeping hit. They may well sell like hotcakes, especially if oil prices rebound to $200/barrel – and it only takes a couple of Iran-sponsored terrorist attacks on ships in the Gulf to make that happen.
And if GM starts selling more Volts than they can build, they’ll be falling over themselves to make as many different versions as they can. No fear there’ll be a Converj on every other driveway in Beverly Hills, Aspen etc this time 2012.
the project doesnt seem like it would requier a substantial investment over the voltec platform, and the higher markups seem to make it a viable excersize.
It may also help GM redeem itself since the EV1 and show that they are dedicated to providing alternative powertrains.
Looks like a lambo mixed with a hint of R8?
C’mon guys, control your excitement. Yes it’s gorgeous, and yes it’s environmentally friendly, but it won’t save GM. If this company had worked out 30 years ago how to make affordable, reliable, desirable cars able to be sold profitably in their hundreds of thousands per year, they wouldn’t now be staring down the barrel of Chapter 11.
Save your cheerleading for the carmakers of the future, not the past.
I agree with Milobob – I can see R8 in that as well. Looks great actually, hope it gets to see the road.
The photo is not even of the car the article is about, it is the Cien concept from 2002, so i think that one has already missed the production boat.
Agree with tentacles…whats wrong with CA? Can’t even get the pic right!
Captain Mainwaring – what you fail to grasp with all of your anti-GM stuff is that even if GM goes into chapter 11, GM will not suddenly cease to exist! There will still be a GM, some even think chapter 11 would be a GOOD thing in a strange twisted way for GM because it would allow them to offload their debt and restructure in a more sustainable way.
GM will not dissapear, like you think it will, it will still be around in some form or another and its stronger brands will stay in the GM portfolio and cadillac would be one of those brands
oh and CA get the right photo up because the real Converj is absolutely stunning!
Seems the caddy designers have finnaly put their rulers to good use!
i think expensive cars will be sold better than mid prices cars and the Converj would have a return of investment pretty good so they shouldn’t delay this project due to this economic crisis.
Car tuning, I’d actually agree with you there. The way I see it is the largest uptake of Prius has been the Hollywood boulevard set. Now, under the banner of national pride, I reckon if you could give them a Cadilac that is almost 90% green they would pay a premium to be seen as the Flag waving tree hugger. GM could charge over the top for the Cadilac, knowing full well that it would be a limited number of starters. Low volume High Yield works for people like Ferrari and Porsche (both had good years in ‘08)
Things like Fusion and Escape, Tahoe and Malibu hybrids just don’t scream loud enough for this particular set so they will pay premium prices to be noticed. I reckon Volt will be seen as too “low rent”
Thats the Cadillac Cien CarAdvice Geeeeeeeezzzzzzzzzz!