The Detroit automaker just made a bold move that could pay off in the competitive EV market.
Electric vehicle market competition intensifies, GM (GM) – Get General Motors Corporation ReportLike other automakers, I know this.
The Detroit giant firmly believes that the biggest winners will be those who not only offer a complete portfolio of vehicles, but cater to all consumers, anticipate their tastes and, most importantly, provide them with a unique experience.
So CEO Mary Barra’s team started offering a variety of vehicles in an attempt to reach all audiences. The first 100% electric vehicle is the Bolt sedan, followed by the SUV/crossover version of the Bolt EUV, which aims to appeal to consumers interested in electric vehicles by offering them at an affordable price.
GM then launched an electric version of the iconic Hummer pickup/truck in a bid to reach the top. The group will unveil an ultra-luxury electric sedan, the Cadillac Celestiq, on July 22, and its low $300,000 price suggests the automaker has decided to take on German rival Mercedes-Benz (DDAIF) and BMW (BMW) .
Track big discounts for drivers
But GM seems to be aiming for more than that. The established automaker has just dared to do something no other automaker has ever done. General Motors, through its premium Cadillac brand, just launched a discount program aimed at buyers of Cadillac’s first electric vehicle, the Lyriq electric SUV.
GM spokesman Michael Albano confirmed to TheStreet that the company has decided to offer a $5,500 discount to a limited number of Lyriq customers. As a result, the base price of the car will drop to $57,490 from the current $62,990 for customers who will be participating in the Cadillac Lyriq’s Targeted Private Advantage program.
The program is available to certain customers who purchased or leased a 2023 Lyriq between June 28 and August 31.
There’s a catch, though: Interested customers have to sign a non-disclosure agreement and let Cadillac know their driving patterns by letting Cadillac track their use of the vehicle.
“The number of customers involved is intentionally very small (less than 20),” Albano said in an emailed statement. “It’s a small program with less than 20 customers, and customers are selected because of location.”
GM did not say how those customers were selected, but they are located in Detroit, Los Angeles and New York. The company also did not say what data it will collect, what it will do with it, and what methods it intends to use to analyze the collected information. Also, it is unclear whether GM will destroy the data in other ways once the study is complete.
“We will use the program to learn more about customer behavior and their vehicles,” Albano said. “The launch of our first all-electric vehicle, the Lyriq, provides Cadillac with some unique learning opportunities as we transform our business.
“As a result, we hired a small group of early customers who agreed to share their vehicle information and customer behavior. Cadillac will use this experience to enhance the experience for all of our customers.”
“The details of this program are a private agreement between the customer and Cadillac,” the spokesperson added.
Carsdirect.com first reported news of the program.
The Lyriq is an important vehicle for Cadillac. It will determine the brand’s success in the electric vehicle market. When the automaker started taking orders on May 19, interest was so high that GM put the order on hold and said the vehicles were sold out.
“2023 Lyriq order is full. Book your 2024 Lyriq today” is the message now written on the vehicle-specific website.
The Lyriq is Cadillac’s first all-electric offering. The company aims to have an all-electric product portfolio by 2030, and says its luxury SUV/crossover can travel 312 miles on a full charge.
Manufactured at GM’s Spring Hill, Tennessee, assembly plant, the Lyriq is based on the Ultium platform, a modular setup that will power various vehicles in the GM family.
The Lyrig starts at $62,990 with rear-wheel drive and $2,000 with all-wheel drive and comes with a second drive unit, which the automaker says will be placed at the front of the vehicle for improved power and performance .