General Motors Pivots Cadillac Back to Gasoline Engines

General Motors is reversing its strategy to make Cadillac an all-electric luxury brand by the end of the decade. Mary Barra, Chair and CEO of General Motors, announced that the company will launch a next generation of internal combustion engine vehicles starting in spring 2027 and continuing through 2028. This lineup will include new versions of the CT5 sedan, the XT5 midsize SUV, and the return of the XT6 three-row SUV.

The strategic shift follows $10.9 billion in electric vehicle-related charges recorded since the second half of 2025, including a nearly $2.3 billion charge in the most recent quarter. This financial reset was driven by cooling consumer demand—highlighted by a decline in North American EV shipments following the expiration of a $7,500 federal tax credit in September—as well as relaxed U.S. emissions regulations and high battery production costs.

To support this diversified portfolio, General Motors will expand the production of full-size SUVs, such as the Cadillac Escalade and Chevrolet Tahoe. The company is shifting some production to a Michigan facility previously designated for electric vehicles, ending the exclusive production of these models at the Arlington Assembly plant in Texas.