Cadillac Is Changing Into An Electric Brand By GM

The car manufacturing companies are racing to participate in the electric vehicle market. General Motors did not miss this opportunity and is trying to turn Cadillac into an electric vehicle brand competing with other famous brands in the EV market. On Friday, GM introduced investors to the proposed plans and a completely new design for the car that uses entirely battery power.

GM focuses on the electric car market to avoid recession in the traditional car market

According to GM, the introduction of this brand new battery electric vehicle architecture is a solid foundation for development in the potential and profitable EVs market. By that, it meant other companies will be able to enter the market and compete rather than the current dominance of Tesla and Nissan.Typically, Tesla has marketed this in the range of high-end personal electric cars and Nissan has high sales.

GM said it created car parts that were manufactured based on a flexible platform including the body designs and all the wheels, both front wheels and rear wheels. Important components, including battery cells, are being designed to work properly and optimally on all programs. The car is manufactured based on the best flexibility possible, and customers can request to adjust the battery system.

Cadillac will be turned into electric cars with the latest GM technology

The plan was provided to investors by GM on Friday, showing that the company is changing its market approach completely. The company's previous electric cars such as Volt - powered by hybrid engines and Bolt - fully electric vehicles fell under the Chevrolet brand.

Currently, Bolt is still on sale. GM Cruise is a subsidiary of GM, currently using Bolt as its test vehicle. By contrast, the Volt will be completely discontinued, according to GM's announcement in 2018. The Cadillac CT6 will also officially be stopped manufacturing because of slow sales.

After four years, General Motors has made significant changes, including cutting down on costly programs, the Opel brand in Europe for example. Instead, the company is increasingly focusing on vehicles that use electricity and autonomous vehicles. In a meeting on Friday, GM emphasized the ongoing recession in the traditional auto market.

As parts of belt-tightening measures, the company eliminated many models of cars that didn't make much profit and instead focused on high-profit SUVs, trucks, and crossovers in November last year. GM has also shut down factories and reduced the number of office workers, especially factories in North America. At the same time, the company also focuses on investment in electric cars and autonomous vehicles that are about to be released in the near future.

High-profit SUVs continue to be produced

These cuts are intended to protect the company from the anticipated recession in the future US auto market. GM's plan will help it raise about $6 billion in the company annual free cash flow. In particular, by 2020, the annual reduction of capital expenditure is nearly $1.5 billion and a reduction of $4.5 billion in costs. In 2018, Ford implemented similar cut policies.

Although they cut a lot of factories and employees, GM said it would double the investment in technology and engineering resources to produce autonomous and electric vehicles by 2020.