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General Motors is continuing its EV pullback by announcing that the next-generation Cadillac CT5 sedan, XT5 midsize SUV and three-row XT6 midsize SUV will offer gas versions.
This marks an abrupt shift from Cadillac’s initial plans of selling exclusively electric vehicles by the end of this decade. GM also has backtracked on EV plans for its other brands and boosted gas-powered engine production, including V8s.
Cadillac's New Gas-Powered Models Will Arrive Beginning Next Spring
CEO Mary Barra said Cadillac’s new gas vehicles will arrive beginning next spring as the automaker continues to pivot away from all-electric vehicles.
“Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE [internal combustion engine] vehicles,” Barra said during the company’s second-quarter earnings call, according to CNBC. She noted that the vehicles will be in addition to the brand’s current all-electric crossovers and Escalade SUV.
Obviously, the big news here is that Cadillac is bringing the discontinued XT6 back as a three-row midsize SUV. The automaker did not say exactly when the XT6 will return but confirmed that it won’t debut until after the redesigned XT5 launches in 2027.
As a reminder, Cadillac pulled the plug on the XT6 after the 2025 model year, leaving three-row SUV buyers with the choice of either upgrading to a full-size Escalade if they wanted a gas engine or switching to the all-electric Vistiq or Escalade iQ.
The Vistiq was supposed to replace the XT6, but the EV struggled to match XT6 sales—Cadillac sold 20,000 XT6s in the SUV’s final full year on sale, compared to almost 7,900 Vistiq SUVs.
GM Recorded $10.9 Billion EV-Related Charges Since H2 2025
During the call, GM also announced $10.9 billion EV-related charges since the second half of last year following slower-than-expected EV adoption as well as U.S. regulatory changes—mainly the eased emissions standards and discontinuation of the EV federal tax credit.
Mary Barra added that GM’s plans include “onshoring significant manufacturing” for the automaker starting next year, in part by expanding production of its full-size SUVs to a Michigan plant that was previously projected to assemble EVs.
GM currently builds its full-size SUVs—Cadillac Escalade, Chevrolet Tahoe and Suburban, and GMC Yukon and Yukon XL—exclusively at its Arlington Assembly plant in Texas.
Barra reiterated that GM’s plans include “onshoring significant manufacturing” for the Detroit automaker beginning next year, in part by expanding production of its full-size SUVs to a Michigan plant that was previously slated to build EVs.
The full-size SUVs — Escalade, Chevy Tahoe and Suburban, and GMC Yukon and Yukon XL — are currently exclusively produced at the company’s Arlington Assembly plant in Texas.
