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Speaker 1: General Motors unveiling its first all electric twenty twenty.

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Speaker 2: Five Escalate IQ. Let's end it over to Bloomberg's Matt Miller,

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Speaker 2: who's sitting down with General Motors president Mark Royce.

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Speaker 1: Matt ed, thanks very much, Mark, We really appreciate you

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Speaker 1: joining us. This is a very powerful vehicle with four

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Speaker 1: hundred and fifty miles range, but also a very high

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Speaker 1: price tag. Who are you aiming this product at.

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Speaker 2: Well, if you look at the current Escalade, you know

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Speaker 2: we sold over a million units, and you know, one

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Speaker 2: out of every three of these SUVs in this luxury

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Speaker 2: segment is an Escalator. So we've got a very successful brand.

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Speaker 2: It's been you know, an unbelievable vehicle for Cadillac and

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Speaker 2: General Motors. But this has added to business. So we

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Speaker 2: know there's people that are wanting an electric three row suv,

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Speaker 2: full sized suv. We're going to be the first ones

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Speaker 2: to really bring it here with an iconic brand. So

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Speaker 2: we know this is in addition to our internal combustion

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Speaker 2: engine escalating. You can see it as the next step

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Speaker 2: in the design language for Cadillac, both inside and out,

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Speaker 2: and so this is going to be, you know, right

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Speaker 2: on the cutting edge of everything. It's the Escalade standard

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Speaker 2: of the world, it really is.

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Speaker 1: So you already have the Hummer though, which is definitely

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Speaker 1: on the cutting edge of everything, right, and early adopters

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Speaker 1: who were waiting for a big electric vehicle I'm assuming

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Speaker 1: went out and got that. Who's left it to buy

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Speaker 1: the Escalade A one hundred and thirty thousand to start.

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Speaker 2: Yeah, I was going to say, well, the Ultiman platform

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Speaker 2: here that we're talking about is very flexible and it's

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Speaker 2: very different than the suv offered from Hummer, and so

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Speaker 2: you'll see it in the proportions here where we really

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Speaker 2: are going after efficiency. With four hundred and fifty miles

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Speaker 2: of range, that's a big deal for families and people

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Speaker 2: who travel, So it's a big range vehicle, but it's

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Speaker 2: also seve hundred and fifty horsepower. The Hummers are in

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Speaker 2: the thousand horsepower stand in that part of the part

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Speaker 2: of the market there, so it's a little bit different customer.

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Speaker 2: It's very different from a duty cycle standpoint, but it's

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Speaker 2: still built on the twenty four mod pack that we

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Speaker 2: use than our battery electric truck platforms.

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Speaker 1: There has been some criticism about these big battery packs.

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Speaker 1: Bloomberg New Energy Finance, for example, wrote that you're using

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Speaker 1: a lot of lithium that maybe should be left for

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Speaker 1: the smaller electric vehicles. How do you respond to that.

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Speaker 2: Well, General Motors is going to make both number one,

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Speaker 2: So we're going to make everything from the Bolt with

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Speaker 2: an LTM based pack here as we bring it back online,

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Speaker 2: to the Equinox to the Blazer. So those are right

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Speaker 2: in the biggest segments in the world at price points

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Speaker 2: that are you know, the most affordable, right in the

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Speaker 2: wheelhouse of those big volume segments. So we're going to

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Speaker 2: do that too. But you know, technology changes, and so

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Speaker 2: anybody that thinks that we're going to have the same

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Speaker 2: technology even a year from now chemistry rise with our

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Speaker 2: battery systems across the whole industry isn't thinking about it

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Speaker 2: quite right. I think it's been mentioned before that the

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Speaker 2: telem of communications industry, there is all these people that

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Speaker 2: were fearful of copper, right, that all changed, right, and

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Speaker 2: so you get into silic, then you get into chips,

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Speaker 2: you get into all those things that are new technologies

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Speaker 2: on a breaking transformation of the industry. And I can

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Speaker 2: tell you the history books, we'll see this as just

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Speaker 2: the first step.

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Speaker 1: All right, we're talking again with Mark Roy's, president of

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Speaker 1: General Motors, at the introduction of their brand new Cadillacs

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Speaker 1: brand new ev Escalate IQ. And you know I have

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Speaker 1: driven the Escalade, the v with also about seven hundred horsepower. Right,

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Speaker 1: it's got a big V eight eats up a lot

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Speaker 1: of gas. That's the problem you're trying to solve with this,

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Speaker 1: But there are still going to be people out there

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Speaker 1: who want the V eight. How long are you going

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Speaker 1: to sell the internal combustion engine Escalade next to the

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Speaker 1: Escalade IQ.

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Speaker 2: Well, you are very different vehicles again in terms of

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Speaker 2: the package. You know, we've got a huge amount of

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Speaker 2: storage in this vehicle because of what we have up

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Speaker 2: front where the engine used to be, and then also

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Speaker 2: a longer wheelbase and the second row package is quite

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Speaker 2: different too. So you have those things together, they're different vehicles,

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Speaker 2: even though sort of the output on a power basis

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Speaker 2: are similar. We're going to both as long as people

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Speaker 2: want both. And so you know, if you look at

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Speaker 2: this over the long term horizon, the market and the customer,

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Speaker 2: we haven't sold a vehicle like this ever. The market

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Speaker 2: has never seen a vehicle like this. This is the

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Speaker 2: first standard of the world, and so we're going to

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Speaker 2: see what people do.

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Speaker 1: You are going to bring out the Silverado with I

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Speaker 1: believe a similar battery pack and range at least as

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Speaker 1: an option. Are you seeing price pressure because we're now

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Speaker 1: seeing forward capitulate and cut prices. Tesla obviously driving that.

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Speaker 1: How do you expect the pricing to work out well?

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Speaker 2: The pricing though, We're starting with the Silverado with our

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Speaker 2: work truck, so you know, our pricing and our ladders

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Speaker 2: and our battery capacity and range capacity and duty cycle

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Speaker 2: capacity on Silverado and Sierra are going to be for

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Speaker 2: everybody's pocket. Put in price points, so you know, we

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Speaker 2: know where people want it from a work truck in

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Speaker 2: our fleet standpoint, and then it'll it'll go all the

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Speaker 2: way up through the RST, which will you know, again

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Speaker 2: be a high range, high module. But you don't have

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Speaker 2: have to just do that. So we're going to offer

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Speaker 2: those things as options. Cutting price though, means that we

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Speaker 2: didn't see it right, and I don't think that's true.

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Speaker 2: I think we're right in that wheelhouse of what people

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Speaker 2: can afford and want, and so you know, I feel

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Speaker 2: good about our pricing.

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Speaker 1: Are these vehicles going to be profitable? When you start

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Speaker 1: selling them, yes, and are you going to be able

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Speaker 1: to make a million of them in twenty twenty five

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Speaker 1: not the Escalade IQ electric vehicles Electric vehicles?

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Speaker 2: Yeah, I think so. I think we're well on our track.

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Speaker 2: You know, well, we did fifty thousand here first half year.

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Speaker 2: That was our target, and we did that. You've got

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Speaker 2: to bring cell plants along online as you do the

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Speaker 2: assembly plans to make these. Our first plant in Larstown,

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Speaker 2: Ohio is now full capacity and running really well on

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Speaker 2: the second one will be in spring Hill, Tennessee, right

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Speaker 2: next to our lyric facility there, so that's coming online next.

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Speaker 2: And the third one will be in Lansing, Michigan, and

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Speaker 2: we're just you know, doing the construction on that right now.

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Speaker 2: So once we get past the first plant in Lordstown, Ohio,

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Speaker 2: we learned how to make them, we do it at volume.

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Speaker 2: We duplicate that in spring Hill, and we duplicate that

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Speaker 2: in Lansing. So the first ones out here we knew

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Speaker 2: we're going to be, you know, something we've never done before,

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Speaker 2: and we tackled that, and we're doing it with high

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Speaker 2: quality and we're doing at rates. So those are you know,

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Speaker 2: that's how you get into vlume production.

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Speaker 1: I got to ask about the negotiations with the UAW.

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Speaker 1: Are you prepared to make an expensive investment in raising

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Speaker 1: those costs because their demands are I think they said

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Speaker 1: pretty audacious. Yeah.

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Speaker 2: I can't come in on what people say or don't

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Speaker 2: say about that. We are negotiating with our represented workforce

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Speaker 2: in Earnest as we always do, and we're there to

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Speaker 2: make a good agreement, a fair agreement, an agreement that

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Speaker 2: works for everybody, and that's all I have to say.

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Speaker 1: Mark, thanks very much for your time. Really appreciate it.

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Speaker 2: Marks always a Pleasureank, president

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Speaker 1: Of General Motors, talking to us about cadillacs new Escalade

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Speaker 1: i Q