Cadillac pushes Lyriq EV output as battery supply grows

EV Production: The luxury carmaker division of General Motors (GM), Cadillac, is ramping up production of its Lyriq compact, an e-sport utility vehicle, now with rise in battery availability and continous strong demand for luxury EVs, despite a slowdown for various types of EVs, said Global VP at Cadillac, John Roth. 

Production of Lyriq has been far behind initial targets, hamstrung mainly by an issue with assembling battery modules that has crimped GM's EV plans.

The Michigan-based automotive-label Cadillac delivered 9,000 Lyriqs in 2023, according to John Roth. The luxury brand had delivered fewer than 2,400 units in the first half.

"It's been a measured build up and launch as battery modules have become available and, now that we're in a position with strong inventory, we're seeing great sales performance," Roth said, while adding he had "high expectations" of that continuing.

Lyriq now accounts for a quarter of all of Cadillac's sales, up from just about 12 per cent in the fourth quarter of last year, he said.

"The luxury industry I think is operating at a little bit of a different level than the main market as it relates to EVs," the senior official said.

"We still see in the data, 60 per cent of the consumer base, that their next luxury vehicle will be an EV,"  he said.

High borrowing costs have dented consumer sentiment and several companies have warned of a slowdown in demand for EVs. Many automakers, including market leader Tesla, have cut prices sharply to lure potential customers.

Lyric was among the EVs that lost a US government tax credit this month as new sourcing guidelines kicked in. 

However, GM is offering incentives of $7,500 to offset the loss and has said Lyric would regain eligibility early this year.

Meanwhile, Cadillac has been bolstering its EV lineup, as it eyes at offering a fully electric portfolio by 2030.