Cadillac Plans to Keep Offering Gas-Powered SUV Despite Electric Lineup Expansion
Despite Cadillac’s ambitious plan to transition to an all-electric lineup by the end of the decade, the luxury brand has decided to keep at least one popular gas-powered SUV in its lineup. The Cadillac XT5, which is currently the brand’s best-selling vehicle outside of the Escalade, will continue to be sold in North America.
The decision to retain the gas-powered XT5 was confirmed in a recent memo from General Motors to UAW workers. Originally, Cadillac had intended to end production of the XT5 by the end of the year. However, GM has now informed workers that production will continue until the end of 2026, with the vehicle still featuring a gas engine.
The current Cadillac XT5 model will be available for sale until the 2027 model year arrives in the US. It is speculated that the upcoming model may potentially be a hybrid, similar to the XT5 version sold in China, which combines a 2.0L turbocharged engine with a 48V electric motor. However, there was no mention of a fully electric version being in the works.
Production of the Cadillac XT5 will take place in Spring Hill, Tennessee, alongside the brand’s electric SUVs, the Lyriq and Vistiq. Despite the decision to continue offering a gas-powered SUV, Cadillac asserts its position as a leading luxury EV brand in the US. The brand currently offers a full lineup of electric SUVs, including the entry-level Optiq, mid-size Lyriq, three-row Vistiq, and larger Escalade IQ and IQL models.
In the first half of the year, nearly 25% of Cadillac vehicles sold in the US were electric. The XT5 remains a popular choice for consumers, with over 12,700 units sold, making it the brand’s second-best-selling vehicle after the Escalade, which sold over 24,300 models through June.
Cadillac’s decision to continue offering the gas-powered XT5 alongside its expanding electric lineup reflects the brand’s commitment to providing a diverse range of options for consumers in the luxury SUV market.
