by Cadillac Continues to Develop Electric Vehicles
Cadillac recently stated that it does not intend to stop the development of its electric vehicle lineup, even despite the upcoming loss of federal tax incentives. By the end of September, the law enacted during Trump’s presidency will expire, making electric vehicles $7,500 more expensive. However, the brand continues to expand its electric lineup, including models such as the Lyriq, Escalade IQ, Optiq, Vistiq, and Celestiq.
Most of these models are manufactured in the USA, which allows Cadillac to avoid the impact of potential tariffs. The company is confident in its strategy, despite regulatory changes. As noted by John Roth, Vice President of the Global Cadillac Division:
“The automobile business is not a straight line. The electric business even more so.”
Strategy After the Cancellation of Incentives
Although Cadillac will be able to offer tax credits to customers for some time, the company is already preparing for their complete cancellation. Roth does not disclose specific steps but emphasizes that the brand always analyzes market conditions and prepares for various scenarios.
“We have been through many challenges—from the chip shortage to the pandemic. It has made us stronger,” he added.
Manufacturing most models in the USA allows Cadillac to minimize the impact of external factors, such as tariffs. The only exception is the Optiq, which is assembled outside the country. However, this does not currently affect the brand’s overall electrification strategy.
In a world where many automakers might bet again on internal combustion engines, Cadillac demonstrates determination in developing electric technologies. Its latest models, especially the premium Celestiq, show that the brand is future-oriented, even if short-term legislative changes may complicate its plans.
