Cadillac is set to incur losses of $7,500 on each electric vehicle, yet the brand remains undeterred | Carscoops

      Cadillac maintains a positive outlook as it is among the few automotive brands that are better insulated from the upcoming tariffs.

      The company has announced its commitment to expanding its electric vehicle (EV) lineup despite the impending loss of federal tax credits.

      Most of its electric offerings are produced in the US, providing some protection against the potential tariffs from the Trump administration.

      The brand's new electric models include the Lyriq, Escalade, Optiq, Vistiq, and Celestiq.

      Cadillac is determined to be a leader in the luxury electric vehicle market in the US and intends to continue its efforts despite the loss of federal tax incentives. By the end of September, President Trump’s One Bill Beautiful Bill Act will remove the credits, effectively raising the prices of all qualifying new EVs by $7,500. This change occurs at a challenging time for Cadillac, which has significantly expanded its electric vehicle lineup recently.

      The company has introduced multiple new electric models: the performance-oriented Lyriq V, the full-size Escalade IQ and IQL, the compact Optiq and Optiq V, as well as the mid-size Vistiq and the ultra-luxury Celestiq.

      While the elimination of the credit may compel some automakers to revert to internal combustion engines, Cadillac appears steadfast in its commitment to electric vehicles. As John Roth, the vice president of global Cadillac, stated, “you can never stick your head in the sand.”

      Adapting to a Post-Credit Environment

      According to Roth, “the auto business is not a straight line. The EV business is certainly not.” He mentioned that although Cadillac will still qualify for the $7,500 lease and non-lease vehicle incentives through the third quarter, preparations are in place for when the credit ceases.

      In a conversation with The Detroit Free Press, Roth did not disclose the specific actions Cadillac would take once the credits are eliminated, but he emphasized that changes are in progress.

      Cadillac’s Strategy

      “Are we constantly assessing what’s happening in the marketplace? Absolutely,” he said. “Considering our history with chip shortages, pandemics, and more, we have faced numerous challenges as an organization. Navigating through these experiences has strengthened our ability to manage the obstacles ahead while also capitalizing on favorable conditions.”

      Fortunately for Cadillac, it has largely remained shielded from the effects of the trade tariffs imposed by President Trump. With the exception of the Optiq, all of Cadillac’s current models in the US are manufactured domestically, resulting in “very limited impact, if you will, on the Cadillac brand.”