Cadillac keeps gas in the garage as GM slows its EV rush
GM will launch new gasoline-powered Cadillacs from next spring through 2028 after earlier planning an all-electric Cadillac lineup by decade’s end.
By Frankie Delgado · News Reporter
3 min read
General Motors is adding fresh gasoline-powered Cadillacs to the showroom, a clear turn from the all-electric Cadillac future it once sketched for the end of this decade.
GM CEO Mary Barra said Tuesday that Cadillac’s next wave of internal combustion engine models will begin arriving next spring and continue through 2028, CNBC reported. The vehicles will include new versions of the CT5 sedan, the XT5 midsize SUV and the discontinued three-row XT6 SUV, according to Barra’s comments on GM’s second-quarter earnings call.
Barra said the upcoming gas models will sit alongside Cadillac’s current electric crossovers and its Escalade SUV, according to CNBC. That means the luxury brand is not walking away from EVs, but it is making more room for engines that burn gasoline.
The shift adds to GM’s broader retreat from some of its electric-vehicle ambitions. CNBC reported that the automaker previously planned for Cadillac to sell only electric vehicles by the end of the decade.
GM has also reduced EV plans across other brands and has boosted production of gasoline engines, including V-8 options, CNBC reported. The change comes as automakers face a slower EV market than many had expected just a few years ago.
EV costs pile up
CNBC reported that GM has recorded $10.9 billion in EV-related charges since the second half of last year. The charges followed slower-than-expected adoption of electric vehicles and U.S. regulatory changes that eased emissions standards and removed support for EVs, according to CNBC.
Those charges underline how expensive the shift has become for one of America’s biggest automakers. GM had spent years building its EV plans around Cadillac as a showcase luxury brand, with high-end electric models meant to lead the company’s transition.
The new Cadillac plan gives GM more breathing room in a market where many buyers are still choosing traditional engines, especially in larger and premium vehicles. CNBC reported that GM has also increased production of gas-powered engines as it adjusts to demand.
More SUV production in Michigan
Barra also repeated that GM plans to bring more manufacturing into the United States beginning next year, CNBC reported. Part of that plan includes expanding production of full-size SUVs to a Michigan plant that had previously been slated to build electric vehicles.
GM’s full-size SUV lineup includes 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.
The Michigan move would spread production of some of GM’s most important large SUVs beyond Texas, while also tying into the company’s wider push to adjust factory plans after its EV reset.
For Cadillac shoppers, the message is straightforward: electric models remain in the lineup, but gas-powered luxury is not leaving the brand’s playbook anytime soon.
This story draws on original reporting from CNBC.