On the Dash:
- GM will launch next-generation gas-powered Cadillac CT5, XT5 and XT6 models starting next spring through 2028
- The move adds to $10.9 billion in EV-related charges GM has booked since mid-2025
- Full-size SUV production is shifting to a Michigan plant once slated for EVs
General Motors (GM) will launch next-generation gas-powered Cadillac models starting next spring, including updated versions of the CT5 sedan, XT5 SUV and three-row XT6 SUV. CEO Mary Barra made the announcement during GM’s second-quarter earnings call, signaling a step back from Cadillac’s original plan to go all-electric by 2030.
“Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles, including the all-new CT5, XT5 and XT6, which will complement the Escalade and the brand’s luxury segment-leading EV portfolio,” Barra said in Tuesday’s earnings call.
The gas models will sell alongside Cadillac’s current EV lineup, which includes the Escalade IQ, Vistiq, Lyriq and Optiq.
The announcement extends a broader retreat from EVs that GM started last year. The automaker has recorded $10.9 billion in EV-related charges since the second half of 2025, amid slower EV adoption and looser federal emissions rules. The automaker has also dialed back EV plans for other brands, including a shift to gas-powered trucks at its Orion Assembly plant after scrapping EV production there, and ramped up gas engine production, including new V-8 offerings.
Barra also reiterated the company’s plan to onshore manufacturing starting next year, a push that included a $275 million investment at its Spring Hill complex in Tennessee earlier this year to support a future Cadillac ICE product and its 2.7L turbo engine program. Full-size SUV production is expanding beyond the Arlington, Texas plant, too. A Michigan facility once slated for EV production will now build the Escalade, Chevy Tahoe, Suburban, GMC Yukon and Yukon XL. Those SUVs are currently built exclusively in Arlington.
GM’s Cadillac plans landed alongside a strong second quarter, with EBIT-adjusted up nearly 30% and guidance raised for the second time in 2026.
