General Motors (GM) has announced that it will introduce new gas-powered Cadillac models, including updated versions of the CT5 sedan and the XT5 and XT6 SUVs, beginning in spring 2026 and continuing through 2028. This decision marks a notable shift in GM's strategy, as the company had initially aimed for Cadillac to exclusively offer electric vehicles by the end of the decade.
CEO Mary Barra highlighted that these new internal combustion engine (ICE) vehicles will complement Cadillac's existing lineup of electric crossovers and the Escalade SUV.
The announcement comes amid a broader pullback in GM's electric vehicle ambitions, which has seen the company increase production of gas-powered engines, including V-8s, in response to disappointing EV adoption rates and recent U.S. regulatory changes that have relaxed emissions standards.
Since the latter half of the previous year, GM has incurred $10.9 billion in EV-related charges, underscoring the financial impact of its shifting focus.
Additionally, Barra mentioned plans to enhance domestic manufacturing, particularly by expanding production of full-size SUVs at a Michigan plant that was originally designated for EV production, indicating a strategic realignment in GM's manufacturing priorities