Considering Cadillac

Some numbers for the “Standard of the World” seem, well, sub-standard

By Gary S. Vasilash

Cadillac sales in 2025 were up 8.3% compared to its sales in 2024. That’s a good thing.

It delivered 173,516 vehicles compared to 160,204 the year earlier.

But a big reason for that gain is the addition of two models to the lineup, the Optiq and the Vistiq, two electric crossovers.

The Optiq is Cadillac’s least-expensive EV, with a starting price of $50,900; it is also a well-executed vehicle that can stand on its merits.

The Vistiq is the newer of the two and it starts at $77,395. But whereas the Optiq is a compact two-row vehicle, the Vistiq is a midsize three-row model and has been described as a “baby Escalade.” (The Escalade IQ, the electric version, starts at $127,405, so that $77,395 looks a whole lot better for purposes of moving the sheet metal.)

In 2025 Cadillac delivered 12,187 Optiqs and 7,879 Vistiqs, or a total of 20,066 vehicles that it didn’t have for sale in 2024.

So about 11.5% of the 173,516 vehicles sold in 2025 were of models it didn’t have in 2024.

ICE Isn’t Over

In 2025 Cadillac offered four EVs, the Lyriq, Optiq, Vistiq, and Escalade IQ, all crossovers.

In terms of ICE vehicles there were the CT4 and CT5 sedans and the XT4, XT5, XT6, Escalade, and Escalade ESV models.

With 124,363 of the total 173,515 vehicles sold being ICE vehicles, this means that about 72% have engines under the hoods.

However, given that of total 2025 US sales by all OEMs the percentage of EVs sold was on the order of about 10% (at most), the 28% of Cadillac EV sales is notable.

If we look at the figures for Q1 2026, Cadillac sold a total 31,098 vehicles in the US, of which about 31% were EVs and 69% ICE vehicles, which shows a growth of its EV sales despite the continued sagging of the EV category overall during the quarter, when about 6% of total sales were EVs.

Still, when looking at the results of the Cadillac showroom during Q1 2026 there is another perspective.

It has four EV models. It sold 9,551 units. This means an average of 2,388 vehicle sales per model.

It has six ICE vehicles. It sold 21,547 units. This means an average of 3,591 vehicle sales per model.

Clearly advantage to ICE.

Money Matters

Although GM doesn’t explicitly call out financials for its EV business, in the Q1 2026 earnings deck, it points out things like the Orion Assembly Plant being switched from EV to ICE, the discontinuation of the BrightDrop EV van, the move to right sizing its battery supply chain, cash charges associated with canceling contracts with suppliers. So one might figure it still isn’t making money from EVs.

The auto business is all about making money.

So the question becomes how is Cadillac doing with a strategy that is focused, apparently, on increasing EV model presence is the showroom while paring back ICE vehicles.

As previously noted, in 2025 total Cadillac sales were 173,515, of which 49,152, or 28%, were EVs.

In 2025 BMW sold 388,897 vehicles in the US, of which 42,482, or 10.9%, were EVs.

In 2025 Lexus delivered 370,260 vehicles in the US, of which 6,400, or 1.7%, were EVs.

If we assume that no traditional OEM like these three is making money on EVs and if each of them loses approximately the same amount of money on each OEM it sells, which of the three—Cadillac, BMW or Lexus—not only lost the most money on EVs in 2025 not only as a percentage of its sales but in total?

While the figures may be changed due to efficiencies achieved since then, in March 2024 the Boston Consulting Group calculated that an OEM loses $6,000 for every EV sold for $50,000. Cadillac, BMW and Lexus each sell only one model each that is near (but above) $50,000.

So let’s take the $6,000 figure and cut it by $1,000 and make the speculation that there is only a $5,000 loss per EV sold.

Based on the total 2025 deliveries this means:

• Cadillac: $245.8-million loss

• BMW: $212.4-million loss

• Lexus: $32-million loss

Of course, that’s merely speculation.

How About Hybrids?

Hybrid vehicles—which are electrified and have many of the elements of a full EV (e.g., electric traction motor, high-voltage battery pack, inverter, DC-DC converter)—are becoming increasingly popular.

If we look that the three companies in question, we find their hybrid offerings as:

• Cadillac: 0

• BMW: 5

• Lexus: 10

In Q1 2026 Lexus delivered 12,251 RX Hybrids. In the same period Cadillac sold 12 thousand of nothing, with the best-selling product being the Escalade with sales of 9,063 units.

While it is certainly not an apples-to-apples comparison given the magnitude of the Escalade, know that in a 4WD configuration it returns 14 mpg city and 18 mpg highway. An RX 500h AWD returns 28 mpg city and 27 mpg highway. Which is better for the environment?

There are a couple of things to consider on Cadillac’s behalf in its EV efforts, however.

1. It is fairly well accepted that EVs are going to be the end game when it comes to propulsion systems, so maybe its current efforts are building a solid base

2. It has invested in the EV platforms and technologies and were it to completely abandon (or substantially abandon) EVs, that would mean sunk costs would really be sunk

Product planning isn’t for the faint of heart.

And Then This

One more set of numbers.

Here are Q1 2026 sales and how they compare to the period a year earlier:

• Cadillac: 31,098 vehicles, -25.5%

• BMW: 84,231 vehicles, -3.9%

• Lexus: 80,952 vehicles, -2.5%

All have a decline in sales. But one decline is significantly more severe than the others.

There is often something good about sticking to a plan.

But in some cases, all that means is you’re stuck.

What Cadillac needs is something like the BMW 3 Series that has been fundamentally desirable for decades and the Lexus RX, which has propelled that brand’s sales forward in the US.

Until it focuses more on that and turns its attention away from the Celestiq (is anyone really going to buy an Lyriq because there is a Celestiq in the lineup?) and spending on Formula One (how many Optiqs are going to be sold because Cadillac has an F1 team?), whatever “Standard of the World” it is, it certainly won’t be one in terms of sales and profitability.