General Motors is scaling back its electric vehicle ambitions, announcing plans to introduce new gasoline-powered versions of its Cadillac sedan and SUVs. This strategic pivot comes as demand for EVs has cooled more than anticipated, prompting the Detroit automaker to reconsider its commitment to an all-electric future.
GM confirmed it will launch next-generation internal combustion engine (ICE) versions of the Cadillac CT5 sedan, XT5 midsize SUV, and the XT6 three-row SUV starting in spring 2027 and continuing through 2028. This marks a significant departure from Cadillac's previous commitment to becoming an all-electric brand by the end of the decade.
During GM's second-quarter earnings call, CEO Mary Barra stated that the company will begin launching the next generation of Cadillac ICE vehicles. These models will be offered alongside Cadillac's existing and expanding range of electric crossovers and an EV version of its flagship Escalade SUV.
This decision reflects a broader trend among major automakers who are reassessing their EV strategies due to slower-than-forecasted consumer adoption. GM reported $10.9 billion in EV-related charges since the second half of 2025, attributing these costs to slower-than-expected consumer demand and changes in U.S. regulations, including relaxed emissions standards and reduced government support for electric vehicles.
GM is also increasing production of its popular large gasoline-powered SUVs. Production of full-size SUVs, including the Cadillac Escalade, Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Yukon XL, will be expanded to a Michigan factory originally intended for EV production. These vehicles will no longer be produced exclusively at GM's Arlington Assembly plant in Texas.
Previously, Cadillac was positioned as a leader in GM's EV transition, with repeated assertions that the brand would exclusively sell electric vehicles by 2030. The current approach embraces a more flexible strategy, offering consumers both electric and gasoline-powered options as the EV market continues to evolve.
Factors contributing to the challenging environment for electric cars include increased production costs due to tariffs on imported battery components, as well as reduced EV incentives from Washington. Proposed new annual registration fees for EV owners further impact demand, which has already begun to slow.
Online reactions suggest that many drivers are not surprised by GM's decision. Discussions on platforms like Reddit highlight concerns about the shifting national direction on vehicle fuels and the financial implications of chasing these changes. Some users advocate for automakers to offer both EV and ICE technologies simultaneously, citing existing demand for both.
Despite this renewed focus on gasoline-powered vehicles, GM maintains it is not abandoning electric cars. The company plans to continue investing in EV technology while adjusting production schedules to align more closely with actual consumer demand, a notable shift from the aggressive electrification roadmap set forth in previous years.