Cadillac has started making the first steps towards becoming an all-electric brand in North America by 2030—five years ahead of GM's companywide target.

The luxury brand will begin manufacturing the 2023 Lyriq all-electric SUV today at the plant in Spring Hill, Tennessee, with the luxury brand also confirming recently that production of the Celestiq electric flagship sedan will start next year.

As it turns out, another pure electric crossover is on the way, with Cadillac reportedly having showed a photo if it to dealers earlier this month. According to Automotive News, the said vehicle is a compact crossover sized similarly to the XT4. 

Inder Dosanjh, chairman of the Cadillac National Dealer Council and CEO of Dosanjh Family Auto Group, told the publication the electric compact crossover was well received by dealers. Interestingly, he added that Cadillac executives assured dealers that the brand would sell the EV and the XT4 simultaneously for the time being.

Gallery: 2023 Cadillac Lyriq Production Model

Execs told dealers at the meeting that Cadillac will monitor EV margins and customer demand for internal combustion vehicles as part of the transition to battery-electric vehicles. They also made it clear that General Motors would make everything possible to ensure the company and its dealers are profitable.

"They said, 'We're going to keep looking at ICE.’ So a lot of dealers walked out of the meeting very calmly ... with relief."

Inder Dosanjh, chairman of the Cadillac National Dealer Council

Dosanjh said that dealers' biggest fear was Cadillac abruptly cutting the supply of ICE vehicles, which still dominate the brand's sales nationwide. 

Cadillac's planned transition to an all-electric brand has scared many dealers away. The GM-owned automaker has already lost about 40% of dealers as they were not happy to invest in offering electric vehicles.

Before meeting with the dealers, Cadillac vice president Rory Harvey told Automotive News that ICEs and EVs will need to coexist in the lineup for the coming years.

"We are at a time of transition. This is our time to pivot. We have one of the freshest lineups today in terms of our ICE portfolio, and we're complementing that with the rollout of EVs."

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