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The first Cadillac Escalade went on sale in the fall of 1998 as a 1999 model, and it was, by Cadillac’s own later admission, a stopgap. GM needed a luxury SUV immediately to stop customers defecting to Ford’s new Lincoln Navigator, so it took the GMC Yukon Denali, gave it Cadillac badges and a few trim changes, and shipped it in record time. That imperfect first Escalade lasted just two model years — but it opened the door to one of the most successful vehicles in Cadillac history.
The problem: Lincoln got there first
In the mid-1990s, Cadillac’s customers were buying SUVs, and Cadillac had none. When the 1998 Lincoln Navigator arrived — a plush, V8-powered version of the Ford Expedition — it was an instant hit. Mercedes-Benz, Lexus and Range Rover were also selling luxury SUVs. Cadillac executives had reportedly dismissed the idea of a truck-based Cadillac; the Navigator’s success changed their minds quickly.
The solution: borrow from GMC
GM already had a premium full-size SUV in development: the 1999 GMC Yukon Denali. Cadillac took that vehicle, added its own crest and grille, a different interior trim and a longer standard equipment list, and named it Escalade. The development period is usually described as about ten months, remarkably fast for a new luxury model.
What the 1999 Escalade offered
- A 5.7-litre Vortec V8 paired with a four-speed automatic.
- Full-time all-wheel drive (AutoTrac).
- Leather seating for five in the first year, with heated front seats.
- A Bose sound system and wood-trimmed interior.
- GM’s OnStar communication system, then a novel feature.
It was comfortable and capable, but reviewers noted that it looked almost identical to the less expensive Yukon Denali — a criticism Cadillac took to heart.
A short run
Cadillac built the first Escalade for the 1999 and 2000 model years. There was no 2001 Escalade; the company used the time to finish a genuinely distinctive second generation for 2002, with its own sharp-edged styling and a more powerful 6.0-litre V8.
Why it still matters
The first Escalade proved there was demand for a Cadillac SUV, and it established the nameplate at exactly the moment luxury SUVs were taking off. Its successor became a cultural icon, and today the Escalade is often Cadillac’s best-known model worldwide. Few rushed-to-market products have had such a lasting effect.
The rivalry continues
Escalade versus Navigator remains one of the great American luxury rivalries a quarter-century later. Compare the modern versions in Escalade vs Lincoln Navigator, or follow the whole story in our Cadillac Escalade history.
The Escalade today
The current fifth-generation Escalade bears little resemblance to its hastily developed ancestor, with independent rear suspension, a curved OLED display and hands-free Super Cruise. It is one of the SUVs in our chauffeured fleet — see our Cadillac Escalade.
Good to know
Frequently asked questions
What was the first Cadillac Escalade based on?
It was based on the 1999 GMC Yukon Denali, which itself was built on GM’s GMT400 full-size truck platform.
Why is there no 2001 Cadillac Escalade?
Cadillac ended the first-generation Escalade after the 2000 model year and launched the redesigned second generation as a 2002 model.
Is a 1999 Escalade a collectible?
First-generation Escalades are relatively rare and increasingly appreciated as the start of the nameplate, but they are not yet highly valued collector vehicles.
