Investor edition Tuesday, July 21
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GM Announces Gas-Powered Cadillac Lineup Amid EV Pullback

GM plans to launch gas-powered versions of CT5, XT5, and XT6 Cadillacs starting next spring, expanding ICE offerings through 2028 as the company moderates its push toward all-electric vehicles.

GM chief executive Mary Barra spoke on the company’s second-quarter earnings call about a continued shift toward gas-powered Cadillac models.
GM chief executive Mary Barra spoke on the company’s second-quarter earnings call about a continued shift toward gas-powered Cadillac models.

Market impact

GM’s pivot toward gasoline Cadillacs signals a recalibration of its EV strategy and potential implications for its North American manufacturing footprint.

Why it matters: The shift affects GM’s investment, production planning, and regional employment as the company adjusts its mix of ICE and EV platforms amid evolving regulatory and market conditions.

Key numbers

  • $10.9 billion in EV-related charges since H2 last year
  • 2028 as end of ICE cadence
  • Spring 2025 as start of new Cadillacs

Watch next

  • GM earnings calls on ICE transition
  • U.S. EV regulatory changes
  • Detroit-area manufacturing plans
Automotive manufacturing SUVs and crossovers North American manufacturing General Motors Cadillac

DETROIT — General Motors will launch new gas-powered Cadillac vehicles beginning next spring as the automaker shifts away from an all-electric strategy. GM chief executive Mary Barra said during the second-quarter earnings call that the next-generation Cadillacs will include gas versions of the CT5 sedan, the XT5 midsize SUV, and the discontinued three-row XT6 SUV. “Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles,” Barra said, stressing these models will run alongside Cadillac’s current all-electric crossovers and the Escalade.

The announcements come as GM accelerates a broader pullback from EV plans. The company previously floated a Cadillac-only EV lineup by the end of this decade, but has since walked back EV targets for several brands and increased production of gas-powered engines, including V-8 variants. GM has tallied about $10.9 billion in EV-related charges since the second half of last year, reflecting slower-than-expected EV adoption amid evolving regulatory changes that have eased some emission standards and removed support for EVs. Barra also highlighted plans to “onshore significant manufacturing” for GM beginning next year, notably by expanding full-size SUV production at a Michigan plant that was set to produce EVs. The larger full-size SUV family — Escalade, Tahoe/Suburban, Yukon/Yukon XL — is currently produced at Arlington Assembly in Texas under GM’s broader strategy shift.

GM remains focused on balancing its portfolio, maintaining a mix of internal-combustion and electric options as it navigates regulatory and market headwinds while pursuing manufacturing realignment in the Detroit area and beyond.