You can blame Tesla for the reduction.
The EV price war isn't just happening here in the US but in China, too. This has led Cadillac, a company that once said it doesn't need to drop prices, to do precisely that. All Cadillac Lyriq models have reduced their price by 60,000 yuan, roughly $8,300. According to Autoevolution, this latest move is the direct result of Tesla starting a price war.
This isn't just another example of price cutting, however. Cadillac had to remove previously standard features like the lifetime warranty, three years of free charging, and a free home charger. These features can be put back in for $8,300.
GM's factory in Yantai, China, supplies the Chinese domestic market. US models are produced in Tennessee, so theoretically, Cadillac can do the same here.
Cadillac
Everyone has been pointing fingers at Tesla, having started the fire sale earlier this year. The company has denied trying to undercut competitors, claiming it's just repositioning itself better in the market. Whatever the case may be, it definitely benefits the consumer, as proved by Tesla's latest sales and profits results.
The Lyriq price cuts come after Nio pulled a similar move and slashed prices by roughly $4,000. Nio also took away free battery swaps, making it an optional extra.
VW, who is trying to cling onto what little market share it still has in China, cut prices on the ID.3 to the point it now starts at about $17,500. That's $5,000 less than its launch price.
Cadillac Cadillac
This doesn't even include the competition everyone is facing from homegrown Chinese electric automakers like XPeng, Aito, and BYD. Looking at the EV market share in the country, BYD is truly swamping everyone else, with Tesla being the only foreign competitor that can compete.
Cadillac is realizing the only way it can compete for now is by moving products and eating costs. When you're part of a massive company like GM, you can burn cash in ways startups can't.
The Lyriq is an excellent vehicle, offering solid luxury and performance in an attractive package. Since it's now 20% cheaper in China than when it debuted, the company won't have to resort to stealing customers away at Superchargers to convince them it's worth the switch.
Cadillac Cadillac
Keyword: Cadillac Forced To Make $8K Price Cut To Lyriq In Some Markets