Dealers Want Cadillac To Produce More Electric Vehicles

Mar. 11, 2022 1:03 PM ET by Nikesh Kooverjee Industry News / 5 Comments

Dealers are anxious to recoup their investment in EVs.

The Cadillac Lyriq marks the historic American manufacturer's first step into the world of electrification with more advanced and exciting EV products already lined up. The highly anticipated Celestiq sedan is expected to join the SUV by 2024 at the latest and will also employ GM's modular Ultium platform. By 2030, we can expect every Cadillac-badged to be electrified, as part of General Motors' EV strategy.

What very few people have taken into consideration so far is the sizeable investment that the dealership network has to make to accommodate the new wave of products. Despite only one model being available this year, Cadillac dealers need to install everything from charging infrastructure to servicing equipment. We don't know the official numbers but there's no doubt that this is an expensive procedure.

Speaking to key figures in the field, Automotive News reveals that the brand's dealer network is eager for Cadillac to pump out more electric cars in order to make the money being spent on EV renovations worthwhile. The Lyriq alone isn't going to be enough if it wants to see profits from eco-friendly sales.

Justin Gasman, financial services director at McCaddon Cadillac-Buick-GMC located in Boulder, Colorado says, "The majority of today's consumers still want that midsize crossover where they can hold five or six people. They can hold some gear, but they're really focused on the economy and value. [The Lyriq] is the first step in the right direction."

25,000 Lyriq units are expected to be produced at the company's Spring Hill assembly plant this year alone. This is a massive uptake from the initial plan of 3,200 units because demand for the car was greater than what was initially expected. The Celestiq on the other hand is likely to only see a production run of a couple of hundred units in its first year.

Speaking on model strategy, Sam Fiorani, vice president for global vehicle forecasting at AutoForecast Solutions suggests, "For crossovers, they are hitting small, medium and large right [off] the bat. Luxury buyers are looking at crossovers primarily in the XT5 to XT6 size. That's exactly where Cadillac is targeting."

John Iacono, co-president of Bram Auto Group, who very recently opened a new Cadillac dealership in Manhattan, believes that Cadillac's EV strategy needs to focus on the segments where existing ICE products are popular. He says, "Where the Lyriq sits - below and above - is probably where I would think would be the best bet for those vehicles to come on in as an EV version."

There is also a common belief that with the versatility of an EV platform, Cadillac should look at introducing some new body styles to expand its net of potential customers. Gasman adds his belief that, should the brand enter the truck sphere to offer a more premium alternative to the GMC Hummer and Chevrolet Silverado EV, the brand "would kill it."