Latest news with #Lyriq
Yahoo
3 days ago
- Automotive
- Yahoo
Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric
Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric originally appeared on Autoblog. GM's been resolute, for the most part, on electrification. With the Silverado EV released and a mix of electric SUVs across the Chevy and Cadillac brands (Escalade iQ and Lyriq, Chevy Equinox and Blazer EV), the brand has committed harder than any other American automaker. That's not to say the automaker's commitment to internal combustion is gone, though. Tonawanda Propulsion, a GM-owned plant covering 190 acres and comprising three separate facilities, has received nearly $900 million in funding, securing over 850 jobs and production of GM's sixth-generation V8 engine. View the 2 images of this gallery on the original article The investment is important to a lot of people. 'This investment marks an exciting new chapter for our plant,' said Tara Wasik, the plant's director. "This is a testament to the hard work of the membership of Local 774,' said Raymond Jensen Jr. in an interview with local news. 'It's extremely important to the community, to the surrounding areas, and to New York State itself." The impressive sum of $888 million will go towards new machinery, equipment, tools, and renovations as part of the more than $1.5 billion GM has invested in New York State in the last 15 years. It's also hardly the first time in recent memory that GM has extended the V8's lifespan. In 2023, GM invested $579 million in its Flint, Michigan production site. There, too, V8 production will continue to chug along. View the 2 images of this gallery on the original article However, it doesn't account for the $300 million commitment made two years ago in union negotiations to produce electric vehicles, specifically at Tonawanda. And it's not the first area where GM has had to pump the brakes on EV endorsements. The company has sold off its stake in a battery production facility to its partner, LG Energy. In other areas, GM has pushed back against California's 2035 plan to eliminate sales of gas-only vehicles, which is now, by the way, completely dead. On the other hand, GM pushed into the number two spot for April EV sales, capturing nearly 15% of EV sales. Getting mixed signals? Us too, but we blame the current political and economic climate, not necessarily GM. Outfitting the plant for V8 production is important for CEO Mary Barra, too. 'Our significant investments in GM's Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,' she said in a press release. She further emphasized the plant's importance to the brand, citing its 87 years of operation. The plant will finish production of GM's fifth-gen V8 before commencing work on the sixth-gen product. This $888 million investment marks the largest single investment GM has ever made in an engine-producing facility. The fact that it happens to make V8s is almost irrelevant; it implies the combustion engine at large still has several decades of work ahead of it. GM isn't faring poorly in the EV arena, either, so unlike other automakers that have rekindled V8 production, this isn't a crutch. GM's going where the money is, and that's just good business. Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric first appeared on Autoblog on May 29, 2025 This story was originally reported by Autoblog on May 29, 2025, where it first appeared.
Miami Herald
3 days ago
- Automotive
- Miami Herald
Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric
GM's been resolute, for the most part, on electrification. With the Silverado EV released and a mix of electric SUVs across the Chevy and Cadillac brands (Escalade iQ and Lyriq, Chevy Equinox and Blazer EV), the brand has committed harder than any other American automaker. That's not to say the automaker's commitment to internal combustion is gone, though. Tonawanda Propulsion, a GM-owned plant covering 190 acres and comprising three separate facilities, has received nearly $900 million in funding, securing over 850 jobs and production of GM's sixth-generation V8 engine. The investment is important to a lot of people. "This investment marks an exciting new chapter for our plant," said Tara Wasik, the plant's director. "This is a testament to the hard work of the membership of Local 774," said Raymond Jensen Jr. in an interview with local news. "It's extremely important to the community, to the surrounding areas, and to New York State itself." The impressive sum of $888 million will go towards new machinery, equipment, tools, and renovations as part of the more than $1.5 billion GM has invested in New York State in the last 15 years. It's also hardly the first time in recent memory that GM has extended the V8's lifespan. In 2023, GM invested $579 million in its Flint, Michigan production site. There, too, V8 production will continue to chug along. However, it doesn't account for the $300 million commitment made two years ago in union negotiations to produce electric vehicles, specifically at Tonawanda. And it's not the first area where GM has had to pump the brakes on EV endorsements. The company has sold off its stake in a battery production facility to its partner, LG Energy. In other areas, GM has pushed back against California's 2035 plan to eliminate sales of gas-only vehicles, which is now, by the way, completely dead. On the other hand, GM pushed into the number two spot for April EV sales, capturing nearly 15% of EV sales. Getting mixed signals? Us too, but we blame the current political and economic climate, not necessarily GM. Outfitting the plant for V8 production is important for CEO Mary Barra, too. "Our significant investments in GM's Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.," she said in a press release. She further emphasized the plant's importance to the brand, citing its 87 years of operation. The plant will finish production of GM's fifth-gen V8 before commencing work on the sixth-gen product. This $888 million investment marks the largest single investment GM has ever made in an engine-producing facility. The fact that it happens to make V8s is almost irrelevant; it implies the combustion engine at large still has several decades of work ahead of it. GM isn't faring poorly in the EV arena, either, so unlike other automakers that have rekindled V8 production, this isn't a crutch. GM's going where the money is, and that's just good business. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Business Insider
23-05-2025
- Automotive
- Business Insider
People are buying up used Teslas as the average sale price dips
There's been a rise in people listing their Teslas this year, and it looks like many of the vehicles are finding buyers as the average resale price dipped slightly last month. Data released on Wednesday from Cox Automotive indicates that the number of used Teslas sold increased by 27% month-over-month in April. The increase brought the automaker's share of the used-car market to an estimated 47%. Chevrolet and Ford followed, with 8.9% and 6% of the used-car market, according to the data. The average sale price for used Teslas in April decreased 1.8% month over month. The overall average listing price for used EVs decreased 2.8%, according to Cox Automotive's data, up from 3.8% from the same period last year. Tesla's growth in the used-car market comes as the EV giant has had a tough start to the year. In addition to its first-quarter vehicle deliveries being 13% lower than the same period last year and its worst since 2022, the company has also been mired in months of boycott efforts resulting from Elon Musk's political involvement. Following harassment and vandalism aimed at Tesla stores and owners of the brand's vehicles, some owners have shared plans to ditch the vehicle, and others have posted TikTok videos of trading in their Teslas for a new EV. Cadillac said this week that it's attracting more Tesla owners, specifically for its Lyriq model. However, Joseph Yoon, Edmunds' consumer insights analyst, told Business Insider that the increase in used-Tesla sales doesn't necessarily reflect politically motivated offloading. With the value of used Teslas falling dramatically over the past year, Yoon said that many likely can't afford to sell their vehicles if their values don't align with its CEO. "Tesla buyers, they don't have that kind of just cash to burn for the sake of feeling better about themselves," Yoon said. Cox Automotive director of industry insights Stephanie Valdez Streaty told BI that Tesla's market share in the used-EV market is correlated with the automaker's dominance in the overall EV market. Up until last year, Tesla held around half of the EV market share, and in 2020, they held close to 80%, Valdez Streaty said. "They've just been at it a long time," Valdez Streaty said. "So, there's a lot more Teslas in the marketplace that become used Teslas." Tesla hasn't launched a mass-market vehicle since 2020 when it released the Model Y, which went on to become one of the top-selling vehicles in the country. The Cybertruck, launched in late 2023, currently starts at $69,990, and a March recall filing revealed that fewer than 50,000 had been sold. As the company faces an increasingly aging car line-up, the used EV market is growing. Valdez Streaty said that Tesla's used cars are, on average, $7,000 less expensive than the average pricing for all used EVs. Its affordability and the options available can make it a good option, she said. While it's still notable that some Tesla owners say they are ditching their vehicles because of politics, it's not clear whether it's happening at scale, Yoon said. For context, Tesla held an estimated 53.3% market share in the used-car market in 2022, 44.5% in 2023, and 44.7% in 2024. There was a bright spot for Tesla in the Cox Automotive data — sales of new vehicles appear to be on the rise. While most auto manufacturers saw a monthly decrease in new vehicle sales, Tesla was one of the few that reported sales growth for new vehicles, with a 3% increase driven by Model Y sales. In April, Tesla sold an estimated 25,231 of its Model Y, which was recently refreshed. GM and Nissan were among the other brands highlighted in the report that saw a growth in new EV sales. The report said that the growth in used EV sales comes at a time when EVs face continued challenges with affordability, availability, and additional uncertainty due to looming tariffs. A recent consumer survey conducted by Cox Automotive indicates that nearly 50% of respondents believe tariffs will significantly impact their decision to buy an EV.
Yahoo
23-05-2025
- Automotive
- Yahoo
There's been a rise in Tesla owners switching over to Cadillac EVs, exec says
Cadillac said it's seeing a rise in Tesla owners switching to its Lyriq EV models. Cadillac has expanded its EV lineup, and California registrations have increased by 60% year over year. The automaker's growth comes as Tesla had a tough first quarter and experienced declining registrations in multiple markets. Cadillac appears to be eating into Tesla's customer base. The automaker told Business Insider it's seen a rise in Tesla owners switching to its EV brand. The company said its EVs have a conquest rate of about 75% — or the percentage of sales coming from customers switching brands — with 10% being former Tesla owners. Cadillac told BI its first EV model, the Lyriq, launched in 2022 and is seeing a roughly 80% conquest rate, with 25% of buyers coming over from Tesla. At a recent event showcasing its Vistiq model, Cadillac's director of global marketing, Brad Franz, told CNBC the company has seen "a good jump" in the rate and that General Motors' luxury vehicle division has "always had good interaction with Tesla customers," with the Lyriq conquest rate of Tesla owners ranging from 10% to 15%. Franz told CNBC that the figure is now on the rise as the car brand expanded its luxury EV lineup, and it sees potential for even greater growth. Cadillac has added three additional EVs to its portfolio in the past 6 months, including the Escalade IQ, Optiq, and Vistiq. Cadillac told BI it's not targeting any brand specifically and its mission is to "build great Cadillacs" that capture buyers based on the quality of its products and delivery on brand promise. The luxury brand reported a 21% increase in retail sales, with its EV segment up 37% in the first quarter of the year. In California, a crucial market for EVs that's often seen as a bellwether state for the broader market, industry data shows Cadillac registrations jumped about 60% year over year, rising from 1,000 to 1,609 in the first quarter of 2025. Tesla, which remains the EV market leader in the US by a large margin, has seen its sales decline recently in several countries. The same data shows that Tesla registrations decreased 15% year-over-year in California, although its Model Y and Model 3 remain the top two selling EVs in the state, and the Model Y continues to be the best-selling car overall. Tesla did not respond to a request for comment from Business Insider. The rise in Cadillac EV ownership comes as Tesla faces a rocky start to the year. The EV giant fell short of revenue expectations in the first quarter, reporting a 9% year-over-year decline. Tesla's automotive revenue dropped 20% year over year, and the company backed away from its 2025 "return to growth" forecast for its auto business. Tesla reported first-quarter deliveries numbers below analyst expectations and 13% lower than the same period last year. Tesla CFO Vaibhav Taneja said in the company's earnings call last month that the assembly line changeover for the refreshed Model Y impacted delivery numbers. Anti-Tesla hostility also "had an impact in certain markets," he added. Following months of boycott efforts aimed at Tesla, the automaker and SpaceX both saw declines in brand reputation, according to the Axios Harris Poll 100. Tesla dropped to 95th place, a decrease from its ranking in 63rd place last year and eighth place in 2021. Other automakers scored higher on the list compared to Tesla, with Ford landing at 60th and Volkswagen Group at 53rd. Amid continued political backlash against Elon Musk and a challenging EV landscape, Cox Automotive data from April reveals Tesla's used-car sales volume rose 27% month-over-month, meaning that more Tesla owners are trying to sell their vehicles. The surge boosted its share of the used EV market to 47%, according to Cox Automotive's data. Musk said in a recent interview at the Qatar Economic Forum that while the company has "lost some sales, perhaps on the left," Tesla also gained sales from the right. "The sales numbers at this point are strong, and we see no problem with demand," Musk said, adding that the stock price is the best indicator of where the company stands. Despite Tesla stock plummeting over 50% in March and being down 10% year-to-date, the automaker's share price is up 43% this month as the billionaire has taken a step back from his DOGE involvement. While Tesla sales continue to drop in Europe, which Musk described in the forum as its weakest market, the automaker has seen some positive momentum. Cox Automotive data shows that Tesla was among the few manufacturers reporting month-over-month growth in EV sales. Tesla's market share increased by over 3% in April, according to the data, driven by 25,231 sales of the Model Y. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Automotive
- Yahoo
There's been a rise in Tesla owners switching over to Cadillac EVs, exec says
Cadillac said it's seeing a rise in Tesla owners switching to its Lyriq EV models. Cadillac has expanded its EV lineup, and California registrations have increased by 60% year over year. The automaker's growth comes as Tesla had a tough first quarter and experienced declining registrations in multiple markets. Cadillac appears to be eating into Tesla's customer base. The automaker told Business Insider it's seen a rise in Tesla owners switching to its EV brand. The company said its EVs have a conquest rate of about 75% — or the percentage of sales coming from customers switching brands — with 10% being former Tesla owners. Cadillac told BI its first EV model, the Lyriq, launched in 2022 and is seeing a roughly 80% conquest rate, with 25% of buyers coming over from Tesla. At a recent event showcasing its Vistiq model, Cadillac's director of global marketing, Brad Franz, told CNBC the company has seen "a good jump" in the rate and that General Motors' luxury vehicle division has "always had good interaction with Tesla customers," with the Lyriq conquest rate of Tesla owners ranging from 10% to 15%. Franz told CNBC that the figure is now on the rise as the car brand expanded its luxury EV lineup, and it sees potential for even greater growth. Cadillac has added three additional EVs to its portfolio in the past 6 months, including the Escalade IQ, Optiq, and Vistiq. Cadillac told BI it's not targeting any brand specifically and its mission is to "build great Cadillacs" that capture buyers based on the quality of its products and delivery on brand promise. The luxury brand reported a 21% increase in retail sales, with its EV segment up 37% in the first quarter of the year. In California, a crucial market for EVs that's often seen as a bellwether state for the broader market, industry data shows Cadillac registrations jumped about 60% year over year, rising from 1,000 to 1,609 in the first quarter of 2025. Tesla, which remains the EV market leader in the US by a large margin, has seen its sales decline recently in several countries. The same data shows that Tesla registrations decreased 15% year-over-year in California, although its Model Y and Model 3 remain the top two selling EVs in the state, and the Model Y continues to be the best-selling car overall. Tesla did not respond to a request for comment from Business Insider. The rise in Cadillac EV ownership comes as Tesla faces a rocky start to the year. The EV giant fell short of revenue expectations in the first quarter, reporting a 9% year-over-year decline. Tesla's automotive revenue dropped 20% year over year, and the company backed away from its 2025 "return to growth" forecast for its auto business. Tesla reported first-quarter deliveries numbers below analyst expectations and 13% lower than the same period last year. Tesla CFO Vaibhav Taneja said in the company's earnings call last month that the assembly line changeover for the refreshed Model Y impacted delivery numbers. Anti-Tesla hostility also "had an impact in certain markets," he added. Following months of boycott efforts aimed at Tesla, the automaker and SpaceX both saw declines in brand reputation, according to the Axios Harris Poll 100. Tesla dropped to 95th place, a decrease from its ranking in 63rd place last year and eighth place in 2021. Other automakers scored higher on the list compared to Tesla, with Ford landing at 60th and Volkswagen Group at 53rd. Amid continued political backlash against Elon Musk and a challenging EV landscape, Cox Automotive data from April reveals Tesla's used-car sales volume rose 27% month-over-month, meaning that more Tesla owners are trying to sell their vehicles. The surge boosted its share of the used EV market to 47%, according to Cox Automotive's data. Musk said in a recent interview at the Qatar Economic Forum that while the company has "lost some sales, perhaps on the left," Tesla also gained sales from the right. "The sales numbers at this point are strong, and we see no problem with demand," Musk said, adding that the stock price is the best indicator of where the company stands. Despite Tesla stock plummeting over 50% in March and being down 10% year-to-date, the automaker's share price is up 43% this month as the billionaire has taken a step back from his DOGE involvement. While Tesla sales continue to drop in Europe, which Musk described in the forum as its weakest market, the automaker has seen some positive momentum. Cox Automotive data shows that Tesla was among the few manufacturers reporting month-over-month growth in EV sales. Tesla's market share increased by over 3% in April, according to the data, driven by 25,231 sales of the Model Y. Read the original article on Business Insider Sign in to access your portfolio
