Cadillac plans to price a future electric sedan at around $300,000, according to people familiar with the matter, testing the cachet of General Motors Co.'s luxury brand.
GM is set to reveal later this summer a prototype of the car, named the Celestiq.
The company has said the sedan will be Cadillac's premier offering and custom-built at its engineering center near Detroit. It hasn't disclosed pricing.
The auto maker intends to build fewer than 500 Celestiqs annually as a way to showcase its technology and generate buzz for Cadillac, the people said.
Elements will include customized wood trim in the cabin and the latest version of GM's hands-free assisted-driving system, called Ultra Cruise, they said.
The Celestiq price tag could run well beyond $300,000 depending on added features, and the car is scheduled to go into production by late 2023, the people said.
Cadillac is among a number of premium car brands that intend to fully transition their vehicle portfolios to electric at a faster pace than the broader industry. Mercedes-Benz, Volvo, Rolls-Royce, Cadillac and GM's Buick all have said they plan to sell EVs exclusively by 2030.
Luxury car brands are better positioned to make the switch from internal-combustion models because they have more flexibility to set higher prices to offset the high cost of the large batteries needed to power EVs, analysts say.
GM has said Cadillac will lead the way in the auto maker's transition to EVs, which includes plans to offer a few dozen electric models in North America across GM's four brands by mid-decade, up from four today.
GM has said it can quickly build scale in EVs by using a common system of battery cells, motors and other in-house components to underpin each new entry.
Cadillac, founded in 1902, recently began rolling out its first-ever electric model, the Lyriq, a midsize SUV that GM is building at a plant in Tennessee.
The Celestiq is expected to be among several new Cadillac EVs in coming years.
The Celestiq price would put the car in a category of high-end sedans from luxury makers such as Rolls-Royce and Bentley. Cadillac has said the car will feature a low-slung profile, a glass roof and four-wheel steering for better maneuverability.
GM's all-electric push for Cadillac is the latest revitalization effort for a brand that once dominated the luxury-car market.
For decades, Cadillac dueled with Ford's Lincoln brand for status as the nation's top-selling automotive luxury brand. Starting in the late 1990s, both were overtaken by German and Asian luxury names, including BMW, Mercedes, Audi and Lexus.
Cadillac's U.S. market share has stabilized in recent years, at around 1% of the overall U.S. vehicle market, amid several efforts at an image reboot.
Cadillac has revamped its vehicle lineup away from large, cushy sedans to focus on sporty driving, a bid to better compete with the German luxury players. Since the early 2000s it has sold a line of racetrack-oriented cars, the Cadillac V-Series models.
Still, past efforts by Cadillac to burnish its image through so-called flagship vehicles have been mixed.
In 2016 it introduced the CT6, a large, powerful sedan, and phased it out in the U.S. four years later. In 2013, it launched a nearly $80,000 plug-in hybrid car, the ELR, but it also was discontinued amid weak sales.
Cadillac has had success with its Escalade SUV, which routinely sells for more than $100,000 and is popular among professional athletes and celebrities.
Scott Allen, owner of Crestview Cadillac, a dealership near Los Angeles, said he is hopeful the push into electrics will improve Cadillac's image and boost sales.
He said the Celestiq can help create interest in the brand even if the car is produced in small numbers. "Cadillac needs that bling to show people, 'This is what we can do'."
