On November 19, 2021, at the Guangzhou Auto Show Media Day, Pan Mengmeng, the Minister of SAIC-GM’s New Energy Strategic Department, responded to questions from the media, including those from three media outlets, including Garage 42.
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This interview mainly focused on LYRIQ, the first Ultium platform vehicle under Cadillac. On the 17th of this month, Cadillac announced the pre-sale price of LYRIQ at 439,700 yuan, and it is expected to be delivered in June 2022. The following section is an excerpt from this interview.
1. Why is there a price difference domestically and abroad?
Compared with the domestic pre-sale price of 439,700 yuan, the starting price of the LYRIQ in the US market is about 376,000 yuan. Regarding this price difference, Pan Mengmeng stated that there is no very direct price comparison relationship between the domestic version of the LYRIQ and the foreign version. On the one hand, the configuration of the domestic mass-produced LYRIQ is not exactly the same as that of the foreign version. On the other hand, the overseas version’s price is actually a true “vehicle price” and does not include taxes in various states in the US.
In fact, the tax rate in various states in the United States can reach 15% of the vehicle price, averaging around 8%-10%, whereas in China, the manufacturer actually pays the taxes. In addition, the price in North America does not include the freight charge, and users need to pay for the freight from the factory to the final delivery point; also, the North American price does not include any user rights.
2. Is Super Cruise a paid feature?
In the United States, after three years of free use, GM’s hands-free driving assistance system, Super Cruise, needs to be purchased in the form of a subscription. Will China also adopt a similar paid model for Super Cruise? In response to this question, Pan Mengmeng stated that according to the currently announced specifications, Super Cruise is already included in the selling price. However, there is currently no clear information about OTA and paid subscriptions.
3. LYRIQ’s pre-orders have exceeded 2,000, how do you view the current market competition?
Firstly, we do not believe in the concept of competition. Fundamentally speaking, the new energy market is a thriving market, exhibiting rapid growth from both the national orientation and consumer demand perspectives. Actually, as of today, the overall growth rate of the new energy market has exceeded the predictions of most people at the beginning of the year, and its growth speed is very fast.
Therefore, we are not aiming to play our role in this market against our competitors. Essentially, we still need to focus on our customers. As we previously shared with you, during the development of LYRIQ, we continuously collected various opinions and voices from Chinese consumers. Hence, our main mission in this process is to meet the needs of our target customers, rather than just observing the actions of our competitors, which is our big picture.
4. Will LYRIQ’s 33-inch 9K screen have localized content?
The current in-car systems are not in their final production state. In China, there are teams dedicated to localizing in-car systems, including departments at Pan Asia and SAIC. Therefore, LYRIQ’s in-car system will definitely be compatible with many local ecosystems.
5. The offline experience at the North Bund IQ Space is pretty good. What kind of sales model will be adopted for future pure electric models?
The Cadillac IQ Collaborative App has already been launched, taking an online approach to ensure price transparency and uniformity. Users can simply place their orders on the App. Currently, users are placing small orders, but in the future, they will be able to place larger orders and select configurations on the App as well.
Regarding channels, the current IQ space in five cities and six stores is just the beginning. In the future, the number of direct-sales stores will further increase, covering more mainstream electric vehicle cities. Additionally, Cadillac’s network of 400 dealerships across the country will certainly be effectively utilized. Cadillac is also trying innovative marketing methods like direct-sales to connect directly with every user. The direct sales model means controlling inventory and prices.
Fundamentally speaking, the model is not the core issue, consumer experience is our biggest concern. Convenience is the most crucial aspect for them. SAIC will definitely not give up its existing dealership network resources, including after-sales and repair services. However, specific details have not been disclosed at this time.
6. As a pure electric vehicle, how safe is LYRIQ?
As a century-old brand, General Motors never compromises on safety. The initial standard was a combination of the highest standards in both China and the United States. LYRIQ must meet the highest safety crash regulations in both the United States and China, and it also features an extremely rare dual-directional AEB configuration with automatic stopping function when reversing.
7. What are the differentiation highlights of Cadillac in the transformation of traditional automobile companies?
Cadillac has a large number of users in China, and we can understand what these users really want through direct communication with them. What we need to do is to create a new car specifically for the unmet needs, which is something we need to think about from the beginning of development. During the press conference, it was strongly emphasized that the goal of Cadillac LYRIQ is to enable customers to not have to make any choices between luxury, intelligence, and safety. Sometimes when consumers face these products on the market, they really do feel that many of their potential needs are being compromised, and we hope that they no longer have to compromise.
8. What are the new performance highlights? How do you explain the absence of air suspension at this price point?
Performance is fundamental because it is a data point that can be directly observed, such as the range. Some of the data on performance are things that the Cadillac LYRIQ is the first in the industry to achieve. For example, the battery supports fast charging throughout the entire lifecycle, which is a big pain point for consumers. Electric vehicle consumers have been worried that more fast charging piles will cause significant battery degradation, and we can promise consumers that we will support fast charging throughout the entire lifespan.
Air suspension only provides an option from a manufacturing process perspective and allows for new breakthroughs in tuning, but the overall quality of the calibration still depends on the level of vehicle tuning. If the calibration is not ideal, having air suspension may not be as good as having a version without air suspension. Therefore, we suggest that everyone focus on actual experience, and we will also invite various media personnel to experience the overall tuning level of LYRIQ in the future.
9. What percentage of the target customer group consists of existing Cadillac or SAIC-GM car owners?
Cadillac owners also have the need for upgrades, such as many XT5 owners who are interested in switching to an electric vehicle. Pan Mengmeng said, “Why not embrace such a trend towards pure electric vehicles?”
10. In terms of charging networks, what level of progress do you plan to achieve before delivery next year?
We will share the overall layout of the charging network with everyone at the appropriate time next year. One thing that can be shared is that we will first cooperate with domestic mainstream third-party charging operators to provide users with one-stop charging services; on this basis, we will establish a Cadillac brand-exclusive charging network to provide car owners with a more luxurious and prestigious charging experience. This two-pronged approach will make the entire charging ecosystem richer.
11. How are the models on the Ultium electric vehicle platform localized?
The Ultium electric vehicle platform is not an imported product. In the planning phase of this platform, the SGMW Pan Asia Technical Automotive Center, which is the joint team composed of both China and North America, was involved deeply in the development process.
Due to the differences of consumers between China and the United States, the needs of Chinese consumers need to be considered in the early stages. On the other hand, it is also necessary to consider localization. Different countries have different battery and battery cell systems. In China, it is necessary to consider the solutions of the most advantageous domestic partners and integrate them into the overall design scheme of Ultium. One of the biggest features of Ultium electric vehicle platform is that it is very flexible with various solutions for both battery cell technology and battery capacity combinations.
🔗Source: SAIC General Motors
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.