Here’s How GM Will Allocate 2023 Cadillac Lyriq Units To Dealers
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The Cadillac Lyriq is the luxury brand’s very first production all-electric vehicle, combining cutting-edge battery-driven powertrain technology with top-shelf luxury and comfort. Cadillac Lyriq production officially got underway in Tennessee in March, and now, GM Authority has learned how GM will allocate units of the 2023 Cadillac Lyriq to dealers.
According to GM Authority sources, the 2023 Cadillac Lyriq dealer allocation formula will in fact consist of two parts. The first part is based on Cadillac XT4, Cadillac XT5, and Cadillac XT6 sales over the course of the last 12 months, which determines 60 percent of the Lyriq allocation formula for dealers. The remaining 40 percent of the dealer allocation formula is comprised of customers who choose a specific dealer when placing an order for the Cadillac Lyriq online.
As GM Authority covered previously, Cadillac began taking orders for the new Lyriq on May 19th. General Motors celebrated the start of production at the newly renovated GM Spring Hill plant in Tennessee on March 21st.
Notably, the number of Cadillac dealers in the U.S. has shrunk over the last few years, with just 564 dealer locations currently, as compared to 921 locations four years ago. Going forward, Cadillac dealers are required to upgrade to support sales and service of the Cadillac Lyriq, as well as future all-electric Cadillac models. To that end, dealers have invested roughly $200,000 towards on-site chargers, tooling, cosmetic enhancements, employee training, and the like. Alternatively, dealers who opted not to upgrade for the EV transition were offered a buyout package amounting between $300,000 and nearly $1 million.
As a reminder, the Cadillac Lyriq is equipped with the latest GM EV technology, with GM Ultium battery tech and GM Ultium Drive motor tech. Powertrain options include both a RWD and AWD configuration, with peak output rated between 340 horsepower and 500 horsepower, and peak range-per-charge rated at more than 300 miles.
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The order count is my biggest concern right now. How many orders have they taken since the order book opened May 19th?
Over 20,000. I tried to get one but the web app rejected my Zip Code.
The term commonly used for the past sales that gets you more inventory is “turn to earn”. The GM/Honda store I worked at for 12 years used to sell a ton of GM vehicles. Then Honda began to push hard on them (tactics the Japanese brands use that turns me off) to sell and stock more and more Honda’s while giving less lot space and floor planning money to GM. Honda turned up the dealer cash incentives to put more pressure on them. Sadly, it worked. I recall our GM reps from Buick, Cadillac and GMC all coming in and begging the owner and General Manager to take more inventory. I clearly recall them telling the reps that Honda was where the money was at and Honda was going to be first. I personally watched that dealership GM sales dwindle to nearly nothing while they pushed the sales staff to try and turn every GM customer coming through the door to buy a Honda instead. This is what caused me to finally leave that store.
Fast forward a few years and now that same dealership cries foul because GM is giving other dealers the inventory. You see, it’s called turn to earn and it’s designed to allow the dealers who turn more GM products to get more GM products. This is really important when GM introduces a really hot new product and the dealers are all begging for them. Well guess what. The other day I went on my old dealer’s website and checked out the inventory. Because Honda’s are nearly gone with almost no new inventory coming in, they literally had almost zero new Honda’s. The funny thing is that they won’t be getting as many GM products either because GM will do the right thing and give more inventory that is available to the dealers who earned it. Justice (or Karma) at it’s best.
In looking for a new vehicle, I am seeing dealers routinely adding $5,000 to $10,000 to a Ford Transit van with a MSRP of $36,000.
No just Ford dealers. I can only imagine what the remaining Cadillac dealers will do to hose the buying public.
I am no longer in the market. If I buy it will be a Tesla or Lucid. No dealer in the middle.
The self-inflicted demise of the American car dealer.
Ford overall is losing their golden opportunity by releasing new mainstream product just to have have customers wait and eventually go to other carmakers. The order stories on Bronco and Maverick is awful….
You may want to rethink that. Someone was posting here or somewhere else that tesla is now the pits for service. No loaner, very very long waits, … And don’t fool yourself, they break too. I saw one on the side of the freeway just last week waiting for a tow. Me, I’ve got some scheduled service for my 11 year old caddy and guess what, I already have the free loaner arranged. Well, not stupid, I know it is built into the price of the service, but hey those bad bad dealers. Having a car waiting for me when I arrive. How inconsiderate.
Got rid of my 2021 Tesla Model S for no service you call and they tell you to text their service department
Took my car for 4 service visits for noises coming from the front end and very loud sounds when you made a left or right turn. I was told that was normal after the car got a miles on it 6k? The last straw was I took the car in for service and they told me that the car had to be in service for 72 hours to get a loner I lived 45 minutes from the service dept was not told they had changed the loaner program when I question them they got really nasty. Musk closed their customer support. The saving grace was I got $20k more than I paid for the car
GM management will not wake up until they have lost the luxury car market (Cadillac) to every auto & truck manufacturer in the world today. Both domestic and foreign vehicles will take EVs by storm while the Cadillac producers sit on their hands instead of getting the Lyriq into the show rooms on a timely basis!
GM Authority , please obtain the list of Cadillac dealers thst can sell the Lyriq since I failed to get a reservation. The list will be useful for those who wish to see and feel the Lyriq physically.
Raymond. If you need to wait till you can actually feel and touch the product on these new EV introductions you are going to have to wait a very very long time to get one or you are going to have to pay a steep price for one. The first wave of the “Debut Edition” Lyriq will make its way out shortly to customers. Don’t expect many reservations to fall through on this edition and if your lucky to see one at a dealership, and you want one be prepared to pay a steep markup or have to wait 2 years for one. All the 2023 inventory is presold. Only way to get a ‘23 is to go on a waitlist to see if one becomes available otherwise it will be a ‘24. Unfortunately, until production can meet demand that’s the foreseeable future on buying these new EV.
Dealers? That’s the problem right there.
My dealer wanted 5k markup on the MSRP even though I was a current customer. I told them I didn’t think it fair to mark up since I was planning on paying MSRP. In addition, I told them I wanted to traded in a car with very few miles in mint condition. They refused to sell at MSRP so I went in search of a dealer. Lots of them would come back with “we have to wait till the car arrives to decide on price due to changing market conditions” or they had “5k-10 k markups”. I heard a lot of B.S. from a lot of dealers. I finally found an out of state dealer that would sell at MSRP and gave me that in writing. I’ll have the car shipped at a 1/3 of the markup my current dealer wanted. Unfortunately, it’s the dealerships that are leaving a very sour tasting experience with the buyers. They loose a future customer, they loose the profit sale at MSRP, and any profit on a trade in. So I’m not sure what they are thinking. My advise is search for a dearlership that will sell at MSRP because they still do exist, and don’t be afraid to have the car shipped.
please list dealer I will go to them too!
The dealership in my town is not charging over sticker on any new vehicle right now
All the stars are in perfect alignment for this release. Hopefully vehicle will be faultless. It will be a hit in the cities with the 45+ crowd. Will be one of the most interesting releases to watch in automotive history.
The most monumental historic release in automotive history was the Ford Model A in 1928. The second most historic release was the Ford Model B V8 in 1932.
If pump prices climb another .25 cents a gallon this week the car buying public will be wetting their pants to get one.
I went to a local Cadillac dealer at the beginning of the year and they took my name to add to their list wanting a Lyriq. At the time they quoted a $500 deposit and would be selling at MSRP. On May 19th they didn’t want to take any more orders, the deposit is now $2500 for a wait until early 2023 and the sales price is $15,000 over MSRP.
I bought Cadillac’s for 30 years but will now look at others.
The Genesis GV 70 is my next choice.
Rad, It’s only $100 to order.
Dealers can’t charge any more! …you could only order online…I have one ordered and got to order it on the 18th of May before the mass order was opened on the 19th…I got to order 1 day early because Cadillac allowed anyone whom tried to order first batch in September last year to order earl through an email invitation.
Steve:
Am very proud of you folks ordering a red, white and blue vehicle versus Asian and European makes. It shows support for America during these crazy and insane times. I hope your purchase is faultless and to your satisfaction. There is hope for America when we can focus.
Unfortunately what people are not paying attention to is the fact that GM is not leaving the dealer any choice but to mark up vehicles. Did everyone choose not to pay attention to the part in the article were it says GM is making the dealer invest upwards of $200,000 to sell and service these and then say hay congratulations we are going to give you 2 of these to sell with $3400 in markup !! I’m not a mathematician but that doesn’t add up. So don’t take it out on the dealer who has a huge investment in this, blame it on GM if you need to find blame.
Few cars means you will get screwed. Remember 1st year cars can be real junk. Gas will have to be way higher for this car or any EV to make sense.
GM should base the allocation on which dealers are price gouging and which ones aren’t.
They should be allocating the units to “first come – first served”. No dealer had any influence in the sale of a Lyriq and if I had known that a early order at a low volume dealer would be trumped by a later order at a high volume dealer I would have gone to one of the big Cad dealers vs my around the corner dealer who I like very much and have bought multiple units from.
In my opinion this shows CAD does not give a rats A s S about the customer – the big volume stores come first; which I understand if the sales process was more honest. FYI I have an “order” at a large Chev dealer for a Z06 and I know that I am 1345 on their list AS THEY GET ALLOCATED Z06 UNITS, so I have no problem with that but CAD failed is its first “…but wer are different now…” customer service opportunity so its two strikes.
GM allocation to dealers based on prior sales of select models. Good info – first I’ve read that.
Still – information from GM has been mixed, sometimes contradictory. On Feb 1, Barra said Lyriq will begin deliveries”in less than 60 days”. Ha! 100+ days later NO Cadillac dealers have any Lyriq’s. And that’s the CEO making that statement in a GM quarterly earnings call. One would think the CEO would be both well-informed
AND careful about what they say/promise on an earning call. Barra also said, years ago, that Cruise would be deployed “in quarters, not years”. Well, it’s been years. I’m ready to give people a break here and there about forward-looking statements, but this is the CEO who twice made clear statements about important topics that turn out to be not true. I can only say that her creditability with me, and I expect others, is about gone. “Trust is the true coin of the realm”.
Moving on – GM has been making Lyriq’s since March 21. Even at a LRIP (low-rate initial production, a standard practice), GM should have 500+ Lyriq’s available, which is one per dealer in the US. Where are they? When can ANYONE expect to see a Lyriq?
Super Cruise – available since 2017. But on a 2023 Lyric, the hardware will be there, but it will NOT be operational until a software download in late 2023. What gives with that? It doesn’t fill me with confidence.
Little in the Lyriq release fills me with confidence. It has been poorly managed by GM. I hope this is not a sign that GM’s operations management is going down-hill. The Lyriq looks good (not that anyone has actually driven one!!!!), but the release process has been lousy.
Simple, reasonable questions a customer might ask – Why is Super Cruise delayed? If my order made it onto “the list” (not a wait list), when can I expect to take delivery? June? September? December? Can I get even a rough estimate? Some customers might find that information useful.
It’s sad, bordering on utter incompetence, that thus far GM has provided no answers to those simple, reasonable, questions.
My local dealer wanted a $10k markup. I had been a customer of that dealer for 10 years. Tried to talk sense to them, and they would not budge. So I called another dealer about 10 miles further away and they agreed, in writing, to sell at MSRP. It is just plain stupid to gauge buyers when they can go to Tesla, Rivian and Lucid and *always* get a locked in MSRP.
I have a Debut Edition on order with my local dealer at MSRP. I have received notifications from GM. First, is that the Super Cruise will be delayed until Fall but will be loaded thru external software. For the inconvenience, GM is giving me 100,000 GM Rewards points which is worth a $1000 credit. Second, they notified me last week that as a Lyriq buyer, I will receive either $1500 in free public charging credit or a one time credit of $1500 toward home installation of a level 2 charger. The caveat is that you have to go thru Qmerit out of Irvine, CA. They hire local installers but provide the equipment. Qmerit has responded fairly quickly to my emails. GM did jack up the price by almost $3K on the May 19th orders vs the Debut Edition pricing. My local dealer said the dealership investment to install equipment to service, charge, etc is closer to $500K.
They have to put in special lifts to accommodate lifting the under carriage so as not to damage the battery packs.
John:
The new vehicle lifts are also designed to accommodate the heavy weight of the vehicle. I think service through the Cadillac dealer network will be much better than Tesla’s centralized service centers. Tesla’s central service centers are jammed up with vehicles needing repairs which is delaying Tesla owner turnaround times and creating frustration among Tesla users.
Yes. The EV’s tend to be much heavier than ICE cars because of the battery packs. So more range equates to more battery packs equates to a heavier car. Most of these newer EV cars do not come with a spare tire. The reason is they want a trained technician with proper equipment lifting the car and not some home mechanic lifting the car improperly and damaging a cell pack or a structural mounting point for the battery pack. The Teslas require an adapter to be placed on the lift jack so that it’s properly position underneath the car and only the adapter comes into contact with the structure. You can actually buy the adapter on the web if you wish to lift your car yourself. It would probably require a heavy duty jack. So yes I would think these dealers are upgrading there service shops with the proper equipment to service these cars. I think those new EV trucks are coming in at 5000+ lbs. I remember having a 1st generation VW GTI at around under 2000lbs. These new EV are very heavy indeed.
I too am waiting on a debut edition. My dealer has NOT marked up the car. I thought the first deliveries would be May 19th when Cadillac started taking orders for 2023 as originally reported. I want them to get it right so I will wait but as Tom Petty said: “waiting is the hardest part”.
“According to GM Authority sources, the 2023 Cadillac Lyriq dealer allocation formula will in fact consist of two parts. The first part is based on Cadillac XT4, Cadillac XT5, and Cadillac XT6 sales over the course of the last 12 months, which determines 60 percent of the Lyriq allocation formula for dealers. The remaining 40 percent of the dealer allocation formula is comprised of customers who choose a specific dealer when placing an order for the Cadillac Lyriq online.”
The question this leaves behind is the 40% comprised of ALL customers who choose a specific dealer, because every pre-order was required to select a dealer. If a) the all the MY2023 production slots are sold to pre-orders and b) every pre-order has a build slot, isn’t the formula reversed? Shouldn’t it be every dealer gets an allocation for the number of preorders, and the remainder of production slots, if there are any are allocated by whatever math Cadillac wants to use?
Right now, people that selected a smaller dealer are being told they may not receive a vehicle even though they have a “confirmed” preorder due to this allocation garbage.
dadhawk: The fairest most equitable way to distribute is the following:
1. Interested buyers put a $1,000 refundable deposit down.
2. Interested buyer selects their dealer.
3. All buyers are put into a Lottery.
4. Buyers are drawn from lottery basket.
5. Assembly line slots are filled.
6. Every tenth slot on assembly line goes to a dealer who also has their name in a separate dealer Lottery. This gives the big and little dealers a fair and equal shot a getting a car for their dealership for inventory or favorite customer.
Fairest to whom? The smaller dealer.
What about the larger dealer that has invested its capital in upgrading its dealership with EV chargers and specialized equipment to service these EV much more than a smaller dealer. As far as a lottery – screw that. A lottery is just plain luck noting fair about it. You need to push those EV sales on to certain states that have built up some of the infrastructure to support the EV revolution. I see nothing unfair when GM pushes more EV to states like CA , NY, CT. These states should be at the front of the line. If you are a customer due your due diligence. Find out who does some of the bigger volume turn over in your city and pick one of those dealers. Customer have the option to change dealers they are not locked in until the order goes into production. Due to their volume sales it’s fair they should have the lions share of what might become available. Having to give up allocations to a small dealer just so he might get 1 or 2 cars to pass on to their favorite customer is not what I would consider fair. Just by definition of favorite customer it’s most likely someone that buys a new car every year from them. The average joe is totally screwed at a small dealership. His only change is it to go with a larger dealer. I don’t see an issue on how GM has decided to allocate by sales volume and region.
Just got some more bad news from my dealer. I’ve got a Debut Edition reservation and they were just told the production dates for all lyriq’s have once again been pushed out. My dealer told me all there LYRIQ orders production dates moved back to 11/28/22. It will take some time after that to be built and transported to the dealership. So do not expect delivery until next year. I’m seeing all those YouTube videos of the car but it’s still months away before folks with reservations can expect production dates. Most wont see the car till next year. I thought having a Debut Edition reservation might get me the car in early fall or certainly before the year but now its pretty much a no go this year.