Cadillac President Says Marque Is ‘Well Positioned’ To Handle Loss Of EV Tax Credits

Cadillac President John Roth shared a positive outlook on the luxury marque’s ability to navigate the elimination of federal EV tax credits.

“I think we’re well-positioned, but have adjustments we’ll need to make,” Roth replied when asked about the impending removal of the credit. “We make adjustments on a regular basis around the business. You can never stick your head in the sand and hope… that’s not a strategy. You’ve got to continue to work the business.”

Roth expanded by adding that “The auto business is not a straight line. The EV business is certainly not, and you’ve got to continue to make sure that you’re working your strategy, but also being consistent and disciplined with that strategy. That’s been a big focus of ours, and making sure that those consistencies produce results.”

Roth also shared that Cadillac is earning conquest sales from Tesla, Mercedes, Audi, Lexus, and BMW. Additionally, the luxury marque recently reported strong sales, with Cadillac Q2 sales being the best since 2017. This is especially noteworthy since the new legislation could potentially cause domestic manufacturers to lose their competitive edge against foreign rivals despite a battery production tax credit specifically structured to exclude Chinese firms, which continue to lead in production of batteries for EVs as well as sales.

For now, consumers can expect a bit of stability surrounding the price of the Cadillac EVs. As such, we may see discounts offered on the Optiq, Lyriq, and some trims of the Vistiq. For reference, these models are all eligible for a federal EV tax credit through September 30^th, 2025. Meanwhile, the flagship Cadillac Escalade IQ and Escalade IQL will likely be unaffected since they are ineligible for the credit.