Cadillac adds new gas models as GM slows EV shift
GM plans new gasoline Cadillac vehicles from next spring through 2028, reversing earlier expectations that the brand would go all-electric by 2030.
By Sofia Marchetti · World Affairs Correspondent
3 min read
General Motors plans to introduce a new wave of gasoline-powered Cadillacs starting next spring, CNBC reported, extending the luxury brand’s life beyond the all-electric future GM once outlined. The move matters because Cadillac had been positioned as one of GM’s clearest bets on a rapid EV transition by the end of the decade.
GM CEO Mary Barra said Tuesday on the company’s second-quarter earnings call that the next generation of Cadillac vehicles will include gas-powered versions of the CT5 sedan, the XT5 midsize SUV and the XT6 three-row SUV, according to CNBC. The XT6 had been discontinued, CNBC reported.
“Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE [internal combustion engine] vehicles,” Barra said on the call, according to CNBC. She said those models will be sold alongside Cadillac’s existing electric crossovers and Escalade SUV.
Cadillac changes course on EV-only plan
The Cadillac announcement adds to GM’s broader retreat from some electric-vehicle plans, CNBC reported. GM previously said Cadillac would sell only electric vehicles by the end of this decade, according to CNBC.
The automaker has also reduced EV ambitions across other brands and added capacity for gasoline engines, including V-8 engines, CNBC reported. The shift follows weaker-than-expected EV adoption and changes in U.S. policy that relaxed emissions requirements and removed support for electric vehicles, according to CNBC.
GM has recorded $10.9 billion in EV-related charges since the second half of last year, CNBC reported. Those charges reflect the financial cost of reshaping plans after the company had invested heavily in electric vehicles.
Cadillac’s current EV lineup includes all-electric crossovers and an electric Escalade SUV, according to Barra’s comments cited by CNBC. The coming gasoline models will broaden the brand’s offerings rather than replace those EVs, based on her remarks.
Production plans also shift
Barra also repeated that GM intends to bring more manufacturing into the United States beginning next year, CNBC reported. Part of that plan involves expanding production of full-size SUVs at a Michigan plant that had previously been expected to build electric vehicles.
GM’s full-size SUVs include the Cadillac Escalade, Chevrolet Tahoe and Suburban, and GMC Yukon and Yukon XL, according to CNBC. Those vehicles are currently built only at GM’s Arlington Assembly plant in Texas, CNBC reported.
The decision to add Michigan production for those SUVs points to continued demand for large gasoline-powered vehicles inside GM’s portfolio. It also underscores how the company is balancing EV investment with profitable combustion-engine models as market conditions and regulations change.
GM shares were up 3.55% at the time cited by CNBC in its market data. The company announced the Cadillac plans during the same earnings call in which Barra discussed the automaker’s manufacturing and product strategy.
This story draws on original reporting from CNBC.