Only One Cadillac May Survive The Shift From Gas To Electric

  • Cadillac has added a slew of EVs to its range, but is axing several of its ICE models.
  • At the current rate, the Escalade may be Cadillac’s final combustion-powered vehicle.
  • GM is working on plans for the fourth quarter once the federal EV tax credit ends.

Cadillac has expanded its electric lineup more than ever, but shifting consumer interest in the States could complicate its all-EV ambitions. As demand for electric vehicles tapers off, the company may need to revisit its goal of becoming an EV-only brand by 2030.

The final quarter of this year could be especially challenging, since the federal EVs tax credit is scheduled to end, likely making both new and used electric models less accessible to many buyers.

Read: Cadillac Is About To Lose $7,500 Per EV And Still Isn’t Backing Down

GM’s flagship brand has undergone a dramatic transformation over the past couple of years. It first launched the all-electric Lyriq SUV and more recently, it’s been followed up by the electric Optiq and the three-row Vistiq. Additionally, Cadillac wants to once again become the ‘Standard of the World’ with the Celestiq. It has also launched two electric versions of the Escalade, known as the IQ and IQL.

Flexibility in a Shifting Market

Even with these investments, Cadillac is approaching the market with cautious adaptability. According to global Cadillac vice president John Roth, the brand is staying open to adjusting its powertrain strategy as needed.

“It’s really important in this continuously evolving marketplace to make sure that you’re meeting customers where they are,” he said. “The auto industry is never a straight line, and so to put absolutes in the marketplace, you’ve got to have some flexibility to pivot when it makes sense to do so.”

Only One Cadillac May Survive The Shift From Gas To Electric

As Auto News pointed out, more manufacturers are acknowledging that both gasoline and electric models need to be available side by side, with consumers ultimately setting the pace for the transition. Roth confirmed that GM is actively working on plans for the fourth quarter to prepare for the end of the tax credit.

A Shrinking Gas-Powered Lineup

While Cadillac has grown its fleet of EVs, its range of ICE models has shrunk dramatically. The company recently halted production of the XT4, and the XT6 is set to follow later this year.

The XT5 is expected to remain in the lineup only through 2027. Meanwhile, the factory that currently produces the CT4 and CT5 sedans is being converted to focus exclusively on EVs. This shift could eventually leave the Escalade as the last gas-powered Cadillac standing.

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The Auto World

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