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Cadillac Strategy Maintains Focus on EV and Gas-Powered Vehicles

Cadillac Strategy Maintains Focus on EV and Gas-Powered Vehicles
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GM is reconsidering its electric vehicle strategy, taking a cue from Toyota’s success with hybrids. Although the demand for hybrids is urgent, GM’s hybrid and plug-in hybrid models won’t debut until 2027, with every division rolling out such models—except Cadillac.

A Newsweek report reveals that the Cadillac strategy plans to continue focusing on both EVs and gas-powered vehicles through 2030. Despite GM CEO Mary Barra’s recent commitment to hybrids, Stephanie Obendorfer, Cadillac’s senior communications manager, confirmed that Cadillac will stick to its current strategy. She emphasized that customer preferences will ultimately guide the brand’s direction.

2024 Cadillac Celestiq
2024 Cadillac Celestiq

“While Cadillac Strategy will offer an all-EV portfolio by 2030, we will let customer behaviors determine the rate we go exclusively EV. Our fresh ICE and EV portfolio and flexible manufacturing put us in a good position to transition at the rate of the market,” Obendorfer said.

In addition to the existing Lyriq and the ultra-exclusive Celestiq, Cadillac plans to introduce three new EVs in the near future: the large Escalade IQ, the XT6-like Vistiq, and the compact Optiq. These will complement the traditional gas-powered lineup.

While some view this as a balanced approach, industry analysts have mixed opinions. Ed Kim, President and Chief Auto Analyst at AutoPacific, told Newsweek that while Cadillac’s EV plans may attract younger customers, it risks alienating those not ready for a full EV switch. He suggested that hybrids could serve as a middle ground for hesitant buyers.

Cadillac CT5 V engine
Cadillac CT5 V engine

“…adding hybrids would be a good step as many competitive luxury brands are currently doing so, and ignoring them may leave customers who would consider a Cadillac and are interested in electrification—just not full EVs—without any suitable products to choose from. GM has many hybrid and PHEV powertrains available in China, and it may be wise to leverage its global resources to bring hybrid powertrains to the Cadillac brand,” Kim explained.

The Cadillac strategy’s commitment to a diverse lineup aims to accommodate varying customer preferences and market trends, positioning the brand to adapt as the automotive landscape evolves.