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Cadillac Resolves Lyriq EV Shortage and Introduces $7,500 Direct Incentive”

If your anticipation for the Cadillac Lyriq electric SUV has been met with frustration due to delays, here’s some positive news. The head honcho at Cadillac assures that a substantial number of Lyriqs are now available, and more are in the pipeline as production bottlenecks have reportedly been resolved.

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Cadillac

Sales of the 2024 Cadillac Lyriq EV started off slow, with only 86 units delivered in the U.S. in 2022. However, the pace picked up towards the end of 2023, culminating in approximately 9,000 deliveries by the year’s end. In the last quarter, Vice President of Global Cadillac John Roth mentioned that 3,800 units were delivered, making the Lyriq the best-selling electric compact luxury SUV in the U.S. In China, sales saw a 60 percent increase.

The Lyriq constituted 25 percent of GM’s EV sales in the U.S. in January, up from 12 percent in the final quarter of 2023. This surge in demand, coupled with resolved production issues, has led to a better inventory supply.

Although the Lyriq doesn’t qualify for the federal EV tax break, GM now offers a $7,500 incentive for most Lyriq versions. However, certain existing inventory Lyriqs and leased vehicles do not benefit from this incentive. The starting price for the Lyriq is $59,985 before any incentives. GM is actively working to make the Lyriq eligible for the federal tax break by implementing changes in its supply and production processes.

The Lyriq’s journey has been a long time coming, with the production model unveiled in 2021 and initial excitement from buyers. However, the rollout was intentionally slow to ensure a smooth introduction for Cadillac’s first EV. Production began in March 2022 at the Spring Hill Assembly plant, with the rear-drive model. A year later, the all-wheel-drive model was introduced. The Lyriq’s batteries are sourced from GM’s joint venture plant with LG Energy Solution, which initially faced equipment-related challenges causing production delays.

Despite frustrations expressed by GM CEO Mary Barra in December, progress has been made in resolving production issues and module shortages. The January sales figures reflect a positive trajectory, indicating that the production ramp-up is underway. The previously announced stop-sale of the Chevy Blazer EV is not expected to impact Lyriq production.

In addition to Lyriq production, Cadillac has commenced the hand-building of Celestiq EVs for customers, with the first deliveries expected this year. The exact number of orders and details about these bespoke electric cars, priced at $300,000 and above, remain confidential.

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