The Cadillac Lyriq is the very first EV production vehicle to wear the Caddy crest, debuting an all-new luxury crossover underpinned by GM’s latest battery-electric propulsion technology. Notably, the first units of the new Lyriq to roll off the production line were low- to mid-range trims, rather than the high-end trims expected for such an important vehicle launch. Which leads us to ask – how much business did Cadillac lose with this one misstep?
Typically, a new car launch starts with the most-expensive trim level, while more-affordable options follow later. General Motors knows this strategy well, with the 2022 GMC Hummer EV Edition 1 launching the all-electric Hummer line at over $110,000, with lower Hummer EV trims following afterwards. The GMC Sierra EV Denali Edition 1 is another good example of GM following this tried-and-true launch strategy.
Indeed, the benefits of launching with a higher-level trim are numerous. Not only does it allow the automaker to recoup some of its investment in a more timely fashion thanks to higher margins, but the strategy works out for customers as well, given initial buyers are typically early adopters with fatter wallets.
In the case of the Cadillac Lyriq, the number of early adopters was likely exaggerated even further due to the fact that the Lyriq was Cadillac’s first production BEV, boasting new tech features, such as the massive 33-inch digital screen in the cabin.
The point is this – modern EV buyers are typically affluent early adopters after the latest and greatest tech features.
So what about the Lyriq? When it launched for the 2023 model year, the Luxury trim was the first out the gates. While not exactly barebones, the Cadillac Lyriq Luxury certainly wasn’t fully loaded either, and as such, it did not have the same appeal for early adopters as a higher-end trim. As such, early adopters were forced to wait for the 2024 model year to get the Sport 3 or Luxury 3 trims. To note, the Cadillac Lyriq is currently running with an average transaction price of $68,180, while a fully loaded model is upwards of $80,000.
And that’s an issue. The Cadillac Lyriq Sport 3 and Luxury 3 trims were slow to roll out, as GM had issues producing and delivering units to customers. And that meant lower-end models were easier to get than a loaded Sport 3 or Luxury 3. In fact, anecdotal evidence indicates many buyers ordered a well-equipped Lyriq during the 2023 calendar year with no idea when they may actually take delivery.
With all that in mind, we can’t help but wonder – how much business did Cadillac actually lose to luxury EVs like the Tesla Model X, Audi Q8 e-tron, Mercedes-EQ, or BMW iX due to that one misstep in the launch of the Lyriq? For the moment, it’s unclear, but it certainly doesn’t look good, at least from where we’re standing.
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Comments
This isn’t the first cadillac EV. That title belongs to the ELR. And we know what a great sales success it was by going for full luxury pricing day one – even a NM edition. I guess we will see if the Celestiq proves the article right.
Bob, The ELR is a hybrid. Let’s clear that up first!
Regardless; it was a caddy that was more woke than brawn. Cadillac is not the company you look to to have a commuter/fuel saver/lifestyle car. Cadillac is about opulence, or faux opulence for those who can’t afford a Bentley. Thus the Cadillacs best selling vehicle is the Escalade, and will continue to be so till they are able to create a larger Cadillac.
A bigger question that should be asked “How much business will GM lose by pricing a Chevrolet EV at the same level as the Cadillac sibling?”
So now GM only builds high-end trims of everything. Almost and it’s absurd.
And every other automaker does as well. What’s your point?
The lower trim level of the 2024 got me to consider it since sales of the Blazer EV were put on hold. I’m glad I had the option. I’m loving my Sport 1. I’m seeing more people that purchased the 2023 now ordering and waiting for the higher trim 2024’s. They all agree, it’s worth the wait.
Many things lead one to wonder if General Motors knows anything about what they are doing.
It almost feels like bureaucrats are in charge of product design.
It’s clearly not car people and automotive engineers.
Seeing as how GM’s profits are healthy year after year. And seeing on what many considers “poor decisions” while only boosting their bottom line with each decision made, seems like the stockholders are your real culprits. But sure, blame the puppet, not the ones pulling the strings.
If they weren’t capable of building the higher-end ones at the time of the launch, then the answer is that they lost zero business. Seems like they were barely able to build the lower trim ones, considering they were only available in a whopping two colors. I also think GM was specifically trying to launch with vehicles that had lower MSRPs in hopes of creating a value story, rightly or wrongly.
Back when the 2005 SRX came out, GM launched the higher-end ones first (AWD, V8, etc), which some blamed for that model’s slow start. This time, they did the opposite. Seems GM can’t win.
From my understanding a lot of the hold up with higher end trims in particular was chip supply problems, so yeah, a build what you can type scenario.
The bigger question …
“How man sales and 100s of Millions of $$$ has GM lost by building so many vehicles that can’t leave the lot because of Failed Quality Control and 3rd rate engineering ?”
Like faulty tailgate switches?
Hank. Maybe you should be on Toyota Authority my friend.
We at gm do good things and make great products.
Craft, every 2nd or 3rd story these days from GMA says otherwise, and the evidence proves it.
We’re glad you’re proud of your products, but it’s upper & top-level management killing the company with bad decisions, bad press, and not being able to read the room.
Here’s an easy one for you: why doesn’t GM compete in the small sedan market…you know, where Honda, Toyota, KIA. and Hyundai are selling millions? Can’t compete with the Civic, Camry, and Carolla?
Here’s another easy one: why doesn’t GM compete in the hybrid business?
How about every single story from Honda and ford????
The real issue tends to lie with the 3rd party suppliers. Understand why auto comps are able to pay their UAW workers as much as engineers to turn screws. They make nothing in house. They have a dozen UAW workers pushing buttons to control robots assembling parts made by illegal immigrants making 5$ an hour at Dana, Magna and Valeo. All the axles, seats, liners, dashes, light assemblies, switches and infotainment systems are all made by third parties, and these are the people who are the source of 99% of the recalls for the last 3 decades.
Blaming suppliers is easy when they are building 80% of your product.
And that’s a number autoline found looking into GM and Ford, not something I just pulled out.
That’s what I love ablut Tesla. Almost everything is in house.🏠
Because that category is not where the money is at.
GM is a business and is in profit, not charity.
Sometimes. The intercooler circuit on my C7 Z06 was not bled properly when delivered. In fact, I’ve yet to meet a Z06 owner with a properly bled intercooler from the factory. The rest of the car seems to be okay, but it’s disappointing when your car doesn’t make the power it’s supposed to because the factory couldn’t figure it out. Some/many ZR1 owners had the same problem. I’m not sure how they did with the Blackwings, different factory, maybe those folks did it better than Bowling Green. Have a friend that just purchased a CT5-V Blackwing, we’ll be taking a look at it. Hopefully no issues.
I truly believe only the celestiq and scalade iq can answer this question. Time will tell if this worked in caddy’s favor or not
Maybe GM didn’t have enough chips to
build the loaded cars.
The bigger question is ,why did they cast aside one of the most liked and brought models,the XT5 .To push the Lyriq ,instead was a big mistake.
It’s early days still and the big decrease in cost still hasn’t happened yet. Infrastructure still needs to get built out so no GM isn’t in a bad position with the slow ramp up.
I did not realize that a Lyriq could be purchased for $68, to $80. That is pretty fair.
Too bad where I live all the ads are not in English, I have no idea at all what they are
saying, that is a bigger mis step. Not communicating what you are selling is a problem.
Every review I’ve read pointed to very disappointing build quality. So much for paying UAW workers 6 figure incomes.
Component quality. And poor engineering.
Wanna try again, Greta ?
Bought a 2024 lyric model two in 1 October been in the shop twice with charging issues actually has been out of service now for a month and they’re telling me it’s gonna be another two months before they could replace the charger. I understand this is a big problem with the lyrics . they say the charging back box is on backorder. A dealer told me that should become a recall problem, which I don’t understand why GM would put out cars with these kind of issues. It’s really frustrating with the $75,000 car that’s in the shop more than it’s in your garage.
Angry wrench turner at Alabama Walmart Tire Center?
I HAVE DRIVEN CADILLAC’S ALL MY LIFE AND AS FAR AS I AM CONCERNED CADILLAC IS NO LONGER IN BUSINESS.
They are in business but they need a new direction.
Bob, Cadillac is totally in business my friend..
We make great vehicles and our future is solid.
Like any other business, gm is building a future for generations to come.
Be patient, be proud to be an American that is supporting American companies that are and have been competing against foreign brands that are being supplemented by their governments to drive our American companies, out of business.
Thanks to our government officials that allow such practices.
Patent infringement, theft and unfair business practices are all part of the game!
The worst part of all of this is our own government allowing it to happen.
Build American, Buy American!!!
I cannot believe that Mr. Lopez, nor apparently any commenters so far realize that Mr. Lopez’s claim is silly.
My 2023 Luxury Lyriq and substantially the very few Debut models sold before this are actually more well equipped than the 2024 Luxury 3, such as fancier door operation and $1,680 80 amp charging facility which was only recently even available to be ordered for the 2024 model year.
The fact that it was at least $8,000 cheaper than a lesser equipped Luxury 3 2024 model isn’t too hard to take either.
I would have preferred to purchase a much lesser equipped vehicle, but of course other members of my family want all the bells and whistles which presumably will be recovered when I trade it in.
So again, saying that my vehicle had no options is irrespective of the fact that everything was standard on the 2023’s but in no way stripped.
When you read this headline, the first thought I had was, “why didn’t they produce a new gas powered large sedan for Americans.” But read on….
How Much Business Did Cadillac Lose With This One Misstep?
I am one of those people waiting for months. I reserved my Lyriq in May of 2022. I ordered a Sport 3 with the Nappa Leather and the 19.6 charger in September. The Car was finally built on Dec 18th 2023, but because of a software update it is still sitting in Tennessee. I was told it would be 8-14 wks to arrive. to day is week 11. Hoping it gets here soon. The only good part is that they are now dealing on the price so I should not have to pay MSRP.
We ordered our Lyriq 2 1/2 years ago. At the time only one model was available, and it was $20,000 less than the one we ended up with. We were more upset every time Cadillac added thousands of dollars for features that were included in the original model. On Thursday we finally picked up our Lyriq Luxury III. It’s beautiful and drives life a dream, but it also cost us $20,000 more than the original car we pre-ordered.
I couldn’t wait any longer and leased a Mercedes eqe 350. My car finally came in last month and I refused it. It was almost 2 years since my original order.
GM has just completely botched up the BEV Programs….ALL of them!!!
Someone needs to answer for this but we all know nobody ever will.
I’m sure i will get a few thumbs down but here are my thoughts on this. As someone that was in the market for the Lyriq as a replacement vehicle for my wife’s current SUV and our first experience with electric GM/Cadillac dropped the ball. First off my local dealership treated the Lyriq as if it was the next supercar from Ferrari, 20K markup, deposit only to test drive etc. After the initial build up died a bit you I could not place an order for the spec I wanted. Living in Florida ventilated seats are extremely helpful yet you have to order a sport 2 (on the sport side) to have ventilated seats. Then come to find out the sport 2’s are not being built (at the time). Needless to say we leased an Audi Q8 Etron. I think the Lyriq has potential, its a great looking SUV, nice interior just poor execution from GM and hit the Cadillac dealership greed.
The irony in all this is that after this initial hype the local Cadillac dealer by me is stuck with 48 of these on their lot. Yes. You saw that number right. I am NOT exaggerating. I almost fell off my chair when I saw that number on their website. The next model with the largest amount of inventory is the XT6 with only 11 and this is an aging long in the tooth model. So my local dealer is having the opposite problem. Nobody wants them. And this dealer is in Northeastern NJ which is a Tesla playground.
a good friend of mine owned 4 equinoxs ,the last 2 premiers, he was in love with the Lyriq and put a grand down ,deposit right away. after waiting almost 2 yrs he was told he would have his order changed to a 2024 model 12grand more. he since bought a genesis GV70 , loves it, got it rt away, he would like to thank GM he wont buy from them again,so it was the slow launch that hurt GM
GM had the bad fortune to plan and execute this vehicle during first the pandemic and then the supply chain problems which followed it. Unlike the the Teslas that everyone fawns over, GM actually believes that vehicles should be built right before being released to customers. Teslas were innovative and fast when they appeared but were very poorly constructed for at least their first 6 or 7 years. They still aren’t built with the same quality as most less expensive GM products. Yes, these were announced about 5 years ago as 2022s, then they dribbled out as 2023s and it is only in the last quarter of 2023 that they started being produced in quantity. That was not ideal but it was what could be done on a quality basis with new technology during a difficult period. I bought a year one Volt (and later a Cadillac ELR. Both were quality built vehicles that lasted many years and caused few difficulties. Recently my wife traded in the ELR (now 8 years old) for a new Lyriq Luxury 2, awd. She has put over 5,000 miles on it (obviously not much yet, but she will end up putting more than 15,000 miles a year on it). So far it is a delightful vehicle she really likes and it has zero problems. Not bad for a new vehicle with new technology. Unlike our friends’ Teslas, it seems well built with a dramatically nicer interior than Tesla offers. Come on all you naysayers. Have you tried one? They are available now to try. Besides that they are a relative bargain. Considering power, range, features, etc. lesser Toyotas and Nissans can hardly compete on price and are so far behind on features and content. The German gang and Tesla are way pricier. I think GM hit a home run and they can make money on it (which hasn’t been historically true of new tech cars like Prius, Volt, etc-those were money losers for the first few years.
We picked up our Sport 3 a few weeks ago, and I have to admit, it is by far the best vehicle I have ever had in my 59 years. The dealership experience was exceptional from start to finish. Pricing was competitive, $7500 rebate, plus 5k off list. I could not ask for a better experience. The car is smooth as butter, fast, and looks amazing. Everything works as advertised and the google auto interface has me giggling like child. “hey google, set the temp to 72” done. It just works. The one pedal driving took me all of 10 minutes to get used to is a game changer. The screen with the navigation is jaw dropping. We are getting an outlet put in for the charger as I type, and I can not be more happy about this car. We were dead set on a BMW X5, I have a 535D now, that I will be driving into the ground, so this is the wife’s car, but she will be fighting me for it. More people need to cross shop this with any current SUV and they will be sold. If you have a garage and can charge from home overnight, this is a no brainer.
I think you will find that purchasing the LYRIQ was a wise move.. I don’t particularly like the things that you love about the car, but there is enough that I do like that its a KEEPER for me.
In time, BMWs require much expensive maintenance. My LYRIQ has had plenty under warranty, but I’m assuming there is self-incentive at GM to build the cars right the first time, something other industries have done for the past 80 years or so. When they finally get used to building the LYRIQs as a work a day product, maintenance for the end user should be minimal.
JPT, Which Charger are u having installed and did the $1,500 discount from Cadillac help a bit? In my case I use my existing electricals since QMERIT – GM’s representative – won’t touch the old stuff in my home; I got the unlimited fast charging for 2 years even though there isn’t much EVGO presence in my area. The other down side is that, unlike the BOLTs, ChargePoint won’t allow usage since they have nothing to bill a $ amount against
Oh ok, JPT, just re-read your comment… I assume you are having the 32 ampere receptacle installed for the included charger cord with vehicle. This is all 95% of LYRIQ customers will ever need. I hope they use a good quality receptacle. If it is a LEVITON, I’d have someone change it out to a HUBBELL.
Fortunately, the charger cord monitors temperature at 3 places, including what might be a rotten receptacle and will throttle down to minimize overheating.