Cadillac has found a new charge with EVs—pulling buyers from chief competitors while shifting into a more strategic approach to better align with market demand.
First things first: The American luxury automaker, long struggling to recapture its cachet, is now finding fresh momentum with electric vehicles as a frontrunner in the space.
EVs now account for 25% or more of Cadillac’s sales—compared with 6% to 8% of the overall EV industry and 14% of the luxury segment.
Roughly 80% of buyers are trading in vehicles from rivals like Audi, Mercedes-Benz, and BMW.
About 10% of new Cadillac buyers are coming from Tesla $TSLA ( ▲ 3.11% ), the longtime EV market leader.
What they’re saying: “They’re now beyond where we expect the industry to be five years from now,” said Tyson Jominy, vice president of data and analytics at J.D. Power, via CNBC.
“They’re moving very quickly into that space. But we know things are moving really fast—culture is moving fast, technology is moving fast. There’s a lot that can change very quickly. Success today does not necessarily mean success tomorrow or five years down the road.”
Why it matters: Cadillac’s rapid EV gains—outpacing the broader market and winning buyers from entrenched luxury competitors—give its dealers a powerful edge with affluent customers, who are likely to be less sensitive to factors like the loss of federal EV tax credits.
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Between the lines: Even with its recent wins, Cadillac is recalibrating its electrification strategy as EV sales growth cools.
Last week, parent-company General Motors $GM ( ▲ 0.33% ) announced it was temporarily pausing production of the all-electric Cadillac Escalade IQ.
On Thursday, reports surfaced that production of the Lyriq and Vistiq will also be paused in December.
What they’re saying: “General Motors is making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint,” GM spokesman Kevin Kelly said in a statement to The Detroit Free Press.
Bottom line: Cadillac’s sharpened EV strategy positions it to weather industry headwinds while continuing to grow market share. Still, the temporary production pauses may foreshadow deeper shifts in the brand’s long-term electrification plans.
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