Categories Analysis, Markets, Technology

GM to take on Tesla in the EV market with Cadillac brand

Cadillac will be General Motors’ (GM) flagship brand for electric vehicles, the company announced in a press release on Friday. This comes on the heels of the lackluster performance of all-electric Chevy Bolts, sales of which fell by over 20% year-over-year in 2018.

“Cadillac will be GM’s lead electric vehicle brand and will introduce the first model from the company’s all-new battery electric vehicle architecture, GM’s foundation for an advanced family of profitable EVs,” the company stated in the release.

GM cadillac EV brand

The announcement underscores GM’s resolve to shift its EV base away from Chevrolet. In November, the company said it would plug the production of Chevy’s hybrid model Volt by March 2019, as part of its strategy to cut down manufacturing of low-selling brands.

The change in strategy makes sense, given the fact that the automaker is currently trailing behind its rivals in the electric vehicle segment. GM is yet to have a compelling competitor to Tesla (TSLA) Model S, or for that matter, any other high-end EV manufactured by global peers including BMW, Jaguar, Mercedes or Audi.

Without giving out any specifics, GM said it would bring out around 20 EVs by 2023 from the Cadillac stable. The vehicles would come in various body styles and drive types, including front-wheel, rearwheel and all-wheel configurations.

General Motors shares tumble on Q4 sales decline

However, now that GM has sold the 200,000th electric vehicle, the company loses its advantage of $7,500 federal tax credit. For any further sales, the tax credit would be slashed to half for the next six months. This would, in turn, jack up the prices of vehicles.

Also Read:  Idaho resident sues JPMorgan for charging extra on crypto purchases

General Motors is the second automaker after Tesla to reach the EV credit threshold in sales.

 

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips

Most Popular

Salesforce (CRM) Q1 2021 earning infographic

Salesforce (NYSE: CRM) reported first-quarter earnings results for fiscal 2021 after the regular trading hours on Thursday. The results were better than analysts' projections. Meanwhile, the stock fell over 3%

A visual dashboard of Nordstrom (JWN) Q1 2020 earnings results

Nordstrom (NYSE: JWN) swung to a loss in the first quarter of 2020 hurt by the COVID-19 related charges. The fashion retailer reported a loss of $3.33 per share compared

A visual representation of Ulta Beauty (ULTA) Q1 2020 earnings results

Ulta Beauty Inc. (NASDAQ: ULTA) reported its financial results for the quarter ended May 2, 2020, on Thursday after the market closes. The results missed analysts' expectations. The company slipped

Top