2025 Cadillac Lyriq : Australian petrol heads and luxury car fans are about to be hit with massive price rises for two classic American models, with General Motors Specialty Vehicles (GMSV) applying the blowtorch to the 2025 Cadillac Lyriq and Chevrolet Corvette Stingray in Australia.
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Premium In Every Sense of the Word
The electric Cadillac Lyriq, which went on sale in Australia only last year, will cost $7,500 AUD more across all trims from when the 2025 models arrived in showrooms in June.
The entry Luxury model will be priced at $104,990 AUD before on-road costs, with the Sport model moving into price points that were once reserved for premium European luxury brands at $119,990 AUD.
(And meanwhile, the Corvette Stingray, the darling of American performance cars, has also not been immune to the pricing reset.) The 2025 versions will be $8,000 to $12,000 AUD dearer, depending on the model.
The cost to climb into an entry-level 2LT Coupe is now $153,990 AUD, with the drop-top starting from $168,990 AUD. The top-drawer 3LT requirements receive the biggest bucks input $169,990 AUD for the coupe and $184,990 AUD for the drop-top.
“These changes are in response to the realities of the current market situation in global manufacturing and importation,” said Sarah Thornton, Director of Operations for Australia and New Zealand at GMSV.
“We’re managing through supply chains, materials costs and shipping constraints but we’re doing so to maintain the high quality our customers expect,” he said.
Behind the Price Increases
There are a number of reasons behind these extraordinary price increases – a perfect storm for imported luxury cars Down Under.
Automotive production is still being hindered by the persistent global semiconductor shortage, with luxury vehicles proving to be especially vulnerablel as a result of their complex technology systems.
The Lyriq comes packed with advanced battery management systems and driver assistance aids, hundreds of semiconductor components the cost of which has risen between 15% and 40% in the last 18 months.
There also have been currency swings. The AUD is down 8% against the USD since the last pricing was implemented, and naturally import costs have risen.
As both vehicles are produced by General Motors in American plants, that is the price structure down to Australian figures before you start to think about the currency situation.
There are still international shipping problems too. Average container shipping prices from North America to Australia are up by almost 23% year-on-year, says shipping data company Watson Maritime Data. Specialized care for luxury cars is more costly yet.
‘The days of the predictably low cost of global shipping are behind us,’ says Dr Eleanor Hughes, a Professor at the University of Melbourne’s Dept of Global Supply Chain Management.
“The cost of logistics for companies importing expensive items like cars has gone through the roof and that has to be passed on to the consumer,” he said.
Implications for the Australian Market
The pricing adjustments are a crucial change for Australia’s luxury automotive environment.
The recent move by the Federal Government to make the LCT (Luxury Car Tax) threshold US$79,850 / AU$89,332 for vehicles with fuel consumption above a certain level), significantly increases the additional cost for both the recently-revealed Lyriq electric SUV and the Corvette, increasing the effective sticker price for both offerings.
“We’re heading towards a split in the luxury car market,” automotive analyst James Penfold said. “The separation between mass-market premium products and authentic luxury products is growing a great deal.
Models such as the Lyriq and Corvette are very much leaning towards the latter, not in the sense that they’re not luxury, but more because they are now pitted against established European rivals, rather than ‘accessible luxury.’ ”
This re-siting might even change the face of buying habits for the wealthy motorist in Australia. In the past, American luxury cars have sold in part on the basis of providing similar features to their European counterparts at more appealing price points.
As the advantage declines, though, the exceptional nature of cars such as the Lyriq and Corvette will be the more important factor in their market success.
“There has always been an allure to American luxury in Australia — there’s a confidence and a presence about them,” says Australian Prestige Automotive Monthly Editor, Chloe Richardson.
“But as prices more closely follow those of European rivals, buyers will inevitably make a more direct comparison on refinement, build quality and marque prestige.
The Lyriq’s Electric Challenge
The price hikes for the Cadillac Lyriq come as the electric vehicle landscape changes quickly in Australia.
It’s a crowded field for luxury electric SUVs, with the likes of the Audi e-tron, Mercedes-Benz EQC and BMW iX already established players and models including the Genesis GV60 and Lexus RZ joining the fray.
(Australia’s initial allocation of the Lyriq sold out soon after launch, showing interest in the first General Motors luxury electric SUV here. But the new pricing squeezes the value equation a little more.
“The Lyriq provides remarkable range and performance estimates, due to its estimated 102 kWh battery offering, it’s expected to achieve roughly 500 kilometres of real-world range,” Thornton said.
“Its bold design, spacious interior and outstanding technology have always been key pillars and with the latest updates both in terms of improved equipment and pricing, it is easy to see that sedan buyers will continue to find it a compelling deal.”
Despite the price hike analysts that follow the industry said they’re cautiously optimistic about the prospects for the Lyriq.
“People who buy electric vehicles are quite fact-based in terms of how they make decisions, and the range, access to a charging network and the total cost of ownership are all really important factors,” says Dr Michael Cavanaugh, Director of Future Mobility Research at the Australian Transportation Institute.
“The increased initial purchase price of the Lyriq will require a greater emphasis on its long-term value proposition — the fuel and maintenance savings the vehicle will generate that could someday offset its higher initial purchase price.”
Corvette: The Performance Offerings
The case of Corvette Stingray is quite different than the Lyriq because it is already a more niche product in the performance car segment.
The Corvette has been quite successful in Australia in its C8 mid-engine guise and has been an excellent seller and has been purchased by worshippers of its glorious looks and all-conquering performance.
Still, for the price increases, the Corvette still has some advantages over its European sports car rivals. Its obvious top-of-mind rival, the Porsche 911 Carrera, is significantly more expensive to start with at $244,500 – and prices for equivalent performance (like the R8 and entry-level models from Ferrari and Lamborghini) escalate greatly from there.
Like its predecessors, the Corvette remains ‘outstanding performance per dollar,’ as Marcus Webb, GMSV Product Planning Manager, pointed out.
“With more power than the outgoing C6, with 369 kW and 637 Nm, rolling acceleration from 0-100 km/h is under 3.0 seconds, and improved track capability, it represents a new benchmark for performance at its price.”
However this may happen, the higher price point will have to have an effect of the Corvette’s accessibility, probably moving the customer base into the upper-income echelon market and away from the ‘attainable dream car’ position the Vette has held for decades.
“The Corvette is really transforming from being America’s sports car to a bona fide exotic,” Richardson said.
“The shift to a mid-engine architecture was an indication of that and now the pricing proves it out as a very special, aspirational vehicle, not simply a competitive luxury coupe.”
Dealer Response and Consumer Adjustment
GMSV’s dealer network throughout Australia are facing some hard discussions with their customers about some significant price increases.
With waiting lists on both cars and with current order holders wanting to get on with it indoors some will be asking what they do next at the new higher prices other than cancelling etc.
“We’re concentrating on clarity and consumer education,” said Robert Kendall, the General Manager of Melbourne Prestige Automotive, one of Australia’s largest GMSV dealerships.
“For those clients who have been waiting for these vehicles, we are setting up personal consultations to explain the pricing changes and the reasons behind them.
we tend to discover that in a lot of these cases, there’s more passion around these iconic American models than economic considerations.”
Dealers are also squeezing the terms of their finance and leasing programs to give renters and buyers the bigger budgets they need to accommodate the greater investment.
Extended warranty product as well as all-inclusive maintenance offerings are being added to reinforce the overall ownership package.
I do think the amount of these price changes is a big move – we are not in denial on that,”Dawson said. “But we are determined that the ownership experience should reflect the premium positioning of these extraordinary vehicles.
The future of American luxury in Australia
The pricing shifts for the Lyriq and Corvette could potentially indicate a significant change in strategy for General Motors in Australia.
After the demise of Holden and the switch to the GMSV import model, the business seems to be leaning into a more niche market rather than the numbers game.
This follows the model of other American luxury brands overseas. Cadillac, specifically, has taken a similar path in Europe, where it’s marketed as a separate alternative to the highfalutin’ luxury brands, as Master.
“It feels like we are seeing an identity forming for American luxury cars in Australia,” Penfold said.
“Instead of trying to outflank Europeans, the Cadillacs of the world are going to rely upon their distinctive design language, technology focus, and performance heritage to stake out their own territory in the luxury sector — but not the renaissance of the luxury/trans-conscious six-cylinder.”
For Aussie buyers though, this progress means they will need to recalibrate a few of their expectations as far as American luxury cars go.
The value proposition is move away from just the price advantage to creating a one-of-a kind experience and character – and that will be more attractive to some buyers but less so to others.
Preparing to land on Australian shores are the 2025 models of the Cadillac Lyriq and Corvette Stingray, and they come with heftier price tags and a sense of redefining what American auto luxury means locally.
The success of this repositioning would ultimately depend on whether (or not) consumers can be compelled to see these cars not as a discount, but as a premium product they should feel privileged to own, despite the added cost and status.
