Cadillac execs are betting the 'baby Escalade' Vistiq will maintain its strong EV momentum
11/13/2024 04:17
GM’s Cadillac took the veil off its latest creation, the Vistiq three-row EV SUV. The luxury brand is betting another addition to its EV lineup is what its high-income buyers are looking for.
GM's (GM) Cadillac took the veil off its latest creation, the Vistiq three-row EV SUV. The luxury brand is betting another addition to its EV lineup is just what its high-income buyers are looking for — even as other luxury brands struggle with electrified powertrains.
The Vistiq is a full-size SUV powered by two electric motors, underpinned by GM’s Ultium EV platform. Cadillac says this luxe seven-passenger hauler can get 300 miles of range on full charge and boasts those nice extras like a 32-speaker AKG sound system, massaging seats, and automatically retractable second-row seats. (Yes, even adults can comfortably access the third row.)
The Vistiq, or "baby Escalade" SUV, rounds out the Cadillac EV portfolio, Cadillac global VP John Roth told Yahoo Finance at the automaker’s new dealership on the west side of Manhattan. In fact, Cadillac had all of its EVs on display, from the entry-level Optiq crossover to the fully hand-built $300,000 Celestiq sedan.
The Lyriq and Celestiq are on sale now, with the Optiq and Escalade IQ coming in Q4. The just-revealed Vistiq is set for an early 2025 debut. Prices start at $78,790.
“We're bringing to market everything from our entry to the brand with Optiq through Lyriq, which we've been selling for a number of years now, and now we're complementing that with a three-row vehicle...” Roth said.
Roth added that Cadillac’s mission is to meet the shopper “where they’re at.” That means electrified vehicles for different customers — Lyriq and Optic for singles or smaller families, Vistiq and Escalade for larger families, and Celestiq for the extreme higher-end buyer.
But that doesn’t mean only EVs. Cadillac backed away from its goal of an all-EV portfolio by 2030, pivoting as the EV adoption rate in America has slowed in 2023 and 2024. It’s an about-face for Cadillac, but one that Roth says is, again, customer-focused.
“I actually wouldn't call it a new strategy. I'd look at it more as we're meeting the customers where they are,” Roth said. “We have a great portfolio of internal combustion engine vehicles ... that are doing extremely well in the marketplace.”
Roth noted that the gas-powered Escalade is still No. 1 in its segment with nearly a third of the full-size luxury SUV market — and vehicles like the XT4, XT5, and XT6 SUVs are still selling well. The enthusiast-focused Blackwing sedans have also seen sales grow year over year.
But Cadillac sees real opportunity with EVs, which is more than many other luxury brands can say. Audi, Mercedes, and Porsche have struggled with slowing EV growth.
“First, as you look at the overall industry for EVs, it's running at about 7.5% to 8% sales as a percent of the overall industry. As you look at the luxury industry, it's running anywhere from 13.5% to 14%. Cadillac is actually running closer to 19%. In fact, we've had a few months this year where we've run over 22% of our volume,” Roth said.
Meanwhile, Roth wouldn’t speculate what changes to current government EV incentives, like the federal EV tax credit for purchases and leases, would mean for Cadillac’s EV business. The Lyriq qualifies for the full EV tax credit of $7,500, and all Cadillac EVs will be eligible for the same incentive amount for leases if the incoming Trump administration leaves the incentives in place.
“I think there's still a lot yet to be discovered as [Trump] fills out his Cabinet and all the administrative roles that are going to take place there. General Motors has worked with every administration for the last 100 years, and we continue to work with this administration as we go forward, and so I think it's too early to make any predictions or forecasts,” he said.
However, overall EV leases have spiked in the past two years following the federal EV tax credit’s passage, and any change to that program would be sure to hit Cadillac’s EV sales.
With that said, Cadillac is coming off of a strong Q3. The luxury brand said sales were up 5% year over year, with Lyric EV sales topping 7,000 units, up 139% from a year ago.
“We're seeing customers from other brands come to us, and that speaks volumes to the design and the vision that we have for what Cadillac can be in the marketplace,” Roth said.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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