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2024 Cadillac Lyriq Regains $7,500 Federal Tax Credit

General Motors changed the sourcing for two minor components to make the electric Caddy regain its tax credit eligibility.

2023 Cadillac Lyriq First Drive 2023 Cadillac Lyriq First Drive

The Cadillac Lyriq, the automaker’s sharp-looking and swanky entrant to the growing world of luxury electric vehicles, has regained its federal tax credit eligibility.

The Lyriq had temporarily lost its eligibility toward the end of 2023 due to updated Inflation Reduction Act guidelines requiring stricter local battery component sourcing. The automaker announced today that customers can again obtain the $7,500 clean vehicle credit, now at the point of sale.

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The Cadillac Lyriq is a bright spot among GM EVs.

General Motors’ EV rollout has been rough. It is marred with software glitches, production delays, and lower-than-expected demand. But among GM’s other EVs, the Cadillac Lyriq is a glimmer of hope. Last year was decent sales-wise, and it can now be up to $7,500 cheaper.

The 2024 Lyriq starts at $58,590 before taxes and fees. The entry-level Tech variant has an EPA-estimated 314 miles of range for the rear-wheel-drive version, and 307 miles range for the all-wheel-drive variant.

General Motors sourced two minor battery components locally to ensure that the Lyriq regained its eligibility for the tax credit.

In the interim, GM shouldered the cost and offered a $7,500 discount anyway to keep buyers interested, and prices competitive. GM said ineligible vehicles manufactured during that timeframe will still get the cash incentive.

The U.S. Department of Treasury’s updated guidelines that kicked in on January 1, 2024, require stricter component sourcing for items like batteries. The move aims to reduce reliance on China for America’s battery needs and encourage suppliers and OEMs to build out a local ecosystem.

As a result, only 19 of the 43 models that qualified for the federal clean vehicle credit last year were eligible for credits at the start of 2024. But that’s slowly changing, and more EVs are expected to regain their eligibility this year.

“We’ve seen significant demand for the Lyriq. Last year, it was the best-selling compact luxury EV SUV capturing 33% of the segment,” said John Roth, the global vice president of Cadillac. “By offering this incentive, we expect to maintain momentum and reinforce our commitment to the future of EVs,” Roth added.

General Motors sold 9,154 units of the Lyriq last year. Even though that figure isn’t anything to brag about, Lyriq’s sales far outshined its Ultium platform-based siblings. The Chevy Blazer EV is undergoing a stop-sale order after reporters faced mechanical issues with press cars, including our own Kevin Williams. The Silverado EV and the GMC Hummer EV fared poorly as well.

The Bolt EV was GM’s best-selling EV in 2023 but is now discontinued to pave the way for a more modern successor. If those sales numbers are anything to go by, it’s clear that the Lyriq is leading the way for GM’s Ultium EVs. A host of software-driven improvements are also on track for a March 2024 release, which could make it an even sweeter deal for luxury EV buyers.



This article was originally published by a insideevs.com . Read the Original article here. .

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