Cadillac Appears to Waver On EV Commitment
Nearly all of the top automakers selling vehicles in the U.S. have announced aggressive electrification plans that include shifting a majority of their production and sales efforts to EVs over the next decade. Such long-term plans are difficult on their own, but adding Americans’ polarized politics and unique driving culture to the mix has proven exceptionally challenging, even for companies with deep pockets and the most talented engineers. General Motors recently softened its stance, opting to produce more hybrids to fill the EV demand gap, and Cadillac now seems to be following its parent company’s lead.
Back in 2019, former Cadillac CEO Steve Carlisle said the brand would be all-electric by 2030, but the luxury automaker’s global vice president recently clarified those remarks to say that it is always listening to its customers and would follow their lead. John Roth said, “We are always listening to the customer. We are still on strategy of offering al all-EV portfolio by the end of the decade and we’re going to listen to the customer and let them be our guide. That’s our answer.”
That isn’t an explicit guarantee that Caddy won’t stop internal combustion sales, but it’s a strong indication that the brand will not drop gas engines if it views them as profitable and in-demand. The sentiment aligns with recent statements from Stellantis. Its CFO said that new platform development would include a multi-fuel approach, so it could offer gas, hybrid, or EV options if needed.
[Image: Cadillac]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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“We are always listening to the customer. "
You sayin' the baller/gangsta types don't want Escalades on 24's that don't make vroom vroom rumbly sounds?
EVs are a financial gamble for any mfr, but half-hearted commitment will guarantee losses.
BTW, if there were actual, imminent government EV mandates, no mfr could make a statement about "listening to their customers".
Say it ain't so, so reboot #6* isn't going to change anything?
Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”
The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses.
https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible
Given these facts, how did Tesla ever produce anything in volume let alone profit?