Cadillac EVs May Be Bound for Europe

Matt Posky
by Matt Posky

In 2017, General Motors bowed out of the European market. The tactical retreat came after nearly two decades of struggling to make the region profitable and freed up cash the company could use to expand more profitable endeavors located elsewhere. This basically entailed widening its footprint in China, eliminating modestly sized passenger vehicles from its North American lineup, and setting aside any extra money for electric vehicle development. However, the automaker’s Western clientele has been slower to embrace EVs than hoped, even with gas prices becoming astonishingly high, and market analysts expect the United States to be the very last developed nation to see alternative powertrains go mainstream.

One possible solution for this conundrum is to sell those all-electric vehicles elsewhere — namely Europe.

According to a report from Bloomberg, there have been murmurings within GM that it may begin exporting the Cadillac Lyriq to the European Union. Talks are said to be preliminary, with unnamed sources also suggesting that subsequent EVs could follow. This includes the Hummer EV that’s supposed to commence production by 2023.

From Bloomberg:

Broadening GM’s offering would expand its presence in a market where the company currently only sells luxury vehicles and the Corvette sports car in small numbers.

A GM spokesman said no final decisions had been made.

The move would be a renewed push in the region after the company sold its mass-market Opel and Vauxhall brands in 2017 to what is now Stellantis, following two decades of losses.

GM has recently revived the dormant Hummer brand, starting production of the electric pickup in December.

The nameplate was controversial among environmentalists with the Hummer H2 model that got about 10 miles to the gallon.

The automaker acquired the Hummer brand from military contractor AM General in the late 1990s, at the height of the U.S. SUV boom.

While the new Hummer won’t have to worry about today’s fuel prices, environmental activists may eventually realize that a 9,000-pound automobile (that’s over 4,000 kilograms, in case you’re European) probably isn’t going to be all that energy efficient either. But that’s hardly the only headwind GM will be confronting if it moves ahead with this plan. Europe’s new-vehicle sales have been on the decline for almost a year straight and the region is experiencing record inflation and crippling declines in consumer confidence following COVID lockdowns. The war in Ukraine has exacerbated these problems immensely, making it seem like it could be a bad time for GM to invest.

But it might work on a longer timeline. Europe is presently planning to prohibit the sale of gasoline (or diesel) powered automobiles by 2035 and Cadillac has set a goal to transition its entire lineup to EVs by 2030. In fact, stringent regulatory pressures were allegedly one of the reasons GM decided to sell off Opel and Vauxhall in 2017. Though we’d be surprised to learn it was the main reason considering the automaker had endured twenty years of consecutive financial losses selling to the market.

If you’re wondering what the real odds of General Motors taking another whack at Europe happen to be, the scenario seems quite plausible. Late in 2021, the former Cadillac VP Mahmoud Samara was tasked with trying to figure out how to restart operations across the pond. Considering he’s since been promoted to the president and managing director of General Motors Europe, one might assume the resulting strategy was well-received. We also know that the automaker wants to launch a mobility startup that foregoes the traditional dealer model — and that’s something that’ll be much easier for it to pull off there than here in North America.

[Images: General Motors]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Michael S6 Michael S6 on Jun 20, 2022

    Saw it several times around my neighborhood. It didn't wow me by any means and the back end is sort of a mess.

  • Dave M. Dave M. on Jun 21, 2022

    I am by no means a GM-fanboy (I prefer my car companies un-bailed out, or financially competent if you prefer), but the Lyric is pretty good looking. That said, the only love Cadillac and Hummer will get in Europe are the rich Russians and Middle Easterners who equate status with bling. GM has never held a prestige position there nor will they ever.

  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
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