Cadillac is expanding its electric options to keep pace with the rest of the world's luxury automakers. The GM-owned luxury brand started its electric transformation with more expensive options in the Celestiq and Lyriq, but is now backfilling its lineup with a smaller, more affordable plug-in SUV in the heart of segment, the Cadillac Optiq.
"Expanding offering and price points is part of what is needed to grow sales of electric vehicles; as Cadillac has already announced three more expensive EVs, the Optiq segment is logically next and natural progression for the brand," Stephanie Brinley, associate director of research and analysis at S&P Global told Newsweek.
The company quietly revealed its newest electric vehicle (EV) during the week of the LA Auto Show, though the model didn't make it to the company's stand. They revealed that the new Cadillac Optiq, was named to keep with the company's -iq naming scheme, and will be the luxury automaker's smallest and least expensive electric vehicle (EV).
Additional information on powertrain, range, specs and price will be revealed next year, meaning the Optiq is probably a 2025 model year vehicle. It is expected to ride on the GM's Ultiium battery-electric vehicle architecture.
"With Optiq representing the gateway to Cadillac EVs, Cadillac will likely look to fill in some gaps in its EV portfolio with a smaller three-row crossover, a longer wheelbase Escalade IQ, and a more affordable sedan. That EV portfolio would essentially align with its current internal combustion portfolio, representing a robust and well-rounded lineup for the Cadillac brand into its EV era," Paul Waatti, manager of industry analysis at AutoPacific told Newsweek.
Waatii also pointed to Cadillac's struggles with younger buyers despite continued efforts to attract them. Additionally, he said that even though the Optiq launches into the heart of the growing compact crossover segment, that doesn't guarantee its success.
However with three EVs and another on the way before the end of the year Cadillac is fleshing out its lineup for the future. If that will be enough remains to be seen.
The Optiq is smaller than the Lyriq and much smaller than Cadillac's Celestiq sedan/wagon, meaning that it will be priced less than both. The Celestiq is a hyper-luxury entry with prices in the six-figure range, but the Lyriq is much more approachable at $57,197. That's about the average price of a current EV. The Lyriq should land in the high $40,000 range making it even more accessible. But it's not alone in starting at the top end.
"The big challenge for Cadillac now as for the rest of GM is actually executing on the vision for EVs and getting customers to buy these vehicles. While GM has shown some intriguing designs, actually manufacturing and delivering on any of these new EVs has been very problematic so far and the engineering of its big trucks and SUVs has been questionable," Sam Abuelsamid, principal analyst for transportation and mobility at Guidehouse Insights told Newsweek.
The new Optiq will be up against the smaller luxury electric SUVs like the Audi Q4 e-tron, Mercedes-Benz EQB and the Genesis GV60 when it comes to market, as well as smaller gas-powered SUVs like the Lincoln Corsair, which also comes in a plug-in hybrid electric vehicle form.
If Optiq shares its powertrain with the Equinox EV, it will mean one or two motors for front- or all-wheel drive. The Equinox EV delivers 213 or 288 horsepower depending on configuration. The single engine Equinox expects a range of 319 miles. Experts say Optiq could achieve similar figures.
"Optiq is stylish and attractive, the right size for many buyers. but its success hinges on GM sorting its Ultium production issues, nailing its pricing and positioning, and effective marketing that resonates with its younger targeted buyer base," said Waatti.
Abuelsamid agrees that Cadillac still has more to do, even with its most recognizable nameplate.
"GM as a whole and Cadillac in particular will have their work cut out for them to demonstrate that they can reliably build EVs in volume and engineer them to be fully competitive with other brands in the segment. It's also not at all clear if the Celestiq or even the Escalade IQ will provide any significant halo effect to the brand, so it's even more important to execute on the other models," he said.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Jake Lingeman is the Managing Editor for the Autos team at Newsweek. He has previously worked for Autoweek, The Detroit ... Read more
