General Motors says it is responding to a strong demand for luxury EVs by ramping up production of its Cadillac all-electric Lyriq SUV this year. The company says it has resolved its battery module production problems that have plagued sales for the last two years.
Last year GM added new dealerships in 2023 in New York, Texas, Los Angeles, and Atlanta, said John Roth, vice president of global Cadillac, yesterday at a media roundup, reported by Detroit Free Press.
GM has struggled to get the ball rolling with the Lyriq and other EVs due to “an issue” with its battery modules, but the company says it has now turned that around, Reuters reports. Last year, Cadillac delivered 9,000 Lyriqs, with fewer than 2,400 in the first half.
Back in 2020, about 20% of Cadillac’s US dealers, some 170 to 180 dealers, took buyouts from GM rather than invest, sell, and service EVs. But Roth said now the data shows customers want luxury EVs, “even if demand cooled across the mainstream market last year,” Detroit Free Press reports.
“Not just in California, but… in all the regions here in the US and even in Canada where we really have a great availability of the product now,” Roth said. “The luxury industry is operating at a little different level than the main market is when it relates to EVs. We still see in the data: 60% of the consumer base said that their next luxury vehicle will be an EV. So lots of clear data points to show there is strong interest and we have strong sales. We’re bullish on where we’re headed.”
Cadillac is also targeting areas where luxury shoppers live, such as opening a new Cadillac dealership in the “heart of the city” in Manhattan and in other metro markets, Roth said.
The all-around Lyriq has been compared to the Mercedes EQE SUV, Audi A8 e-tron, and BMW iX, but it offers an impressive 300 miles or range at a price set around $60,000. The single-motor, rear-drive model comes with 340 horsepower for 0-60 mph in six seconds, and 500 hp for dual-motor. The 2024 Cadillac Lyriq starts at $57,195, with the mid-range Luxury trim begins at $61,295. The top-of-the-line Sport mode starts at $61,795.
The Lyriq lost its eligibility for federal tax incentives at the start of this year, but GM is making up the difference with $7,500 to offset the loss. Plus the company said it should regain its eligibility early this year. Lyriq is built in Spring Hill, Tennessee.
This is good news for GM, with the Lyriq now making up 12% of Cadillac’s fourth-quarter retail sales. So far this month, it is tracking to be around 25%. Considering that GM sold 122 Lyriqs in 2022, this is a huge step. The brand did sell more than 9,000 units last year, but that number was still far below what was expected.
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