Another Full-EV About-Face
It’s becoming increasingly clear that a full-electric lineup by 2030 is difficult, if not impossible, to achieve. Many automakers have since backtracked on those plans and instead taken a multi-pathway approach to powertrains. Combustion power will hang around for a fair bit longer, whether as pure combustion, hybrid, or plug-in hybrid.
Cadillac was among the more recent ones to make such an announcement. It was announced in July, and the brand will commit to continuing to build combustion-powered vehicles well past the next decade. However, the announcement comes at a pretty awkward time for the brand.
The Conundrum
Cadillac traditionalists will probably welcome the news, but the timing may be a little off given what’s happening behind the scenes. That’s because two combustion-powered models were discontinued last year, and another one just wrapped up production this year. Those models are the XT4, XT6, and CT4. The CT4 is still available, but will be gone by next year.
Not only that, the current-generation CT5 will end production this year, but there will be a next-generation model. As for the XT4 and CT4, those might not see a new generation. Nonetheless, it puts Cadillac in an awkward position: it now has more EV offerings than combustion models after that announcement.
Cadillac
Speed Bumps Ahead
Automotive News reports that dealers are bracing for bumpy roads ahead. Compounding the issue, the brand’s sales have slumped this year, mainly due to the tax credit shift and cooling demand for EVs. It’s the perfect storm that Cadillac didn’t need.
Cadillac dealers are unhappy, to say the least. “It’s the midsize crossover market that’s going to be the challenge. I think [GM CEO Mary Barra] did a disservice to the Cadillac dealers in not figuring out a way to reload XT5 and XT6 sooner,” said Ed Williamson, CEO of Williamson Auto Group to the publication.
Paul Waatti, director of industry analysis at AutoPacific, further added “Cadillac built some of the right EVs, but made the wrong assumption about how quickly its customers would stop wanting everything else. The mistake was treating EV and ICE too much like a handoff rather than parallel businesses.”
Cadillac
No Stopgap
It doesn’t help that Cadillac dropped the XT4 and XT6 from the range, two steady sellers in its arsenal. If it’s any consolation, though, the XT6 is coming back for a new generation, but it will be absent in showrooms for a couple of years. Again, Cadillac doesn’t need it right now.
No model can serve as a stopgap, either. For now, Cadillac dealers will have to convince shoppers that if they want a crossover other than the XT5, it’ll have to be electric. It will be a tough ask, and dealers will face strong headwinds before things hopefully improve. Sure, the Escalade still sells well, but a brand can’t rely on one model to do the heavy lifting.
About the author
Anton Andres
News Editor