GM announces new gas-powered Cadillac vehicles amid EV pullback

by | Jul 21, 2026 | Business

GM announces new gas-powered Cadillac vehicles amid EV pullback

General Motors announced a significant expansion of its gasoline-powered vehicle lineup, with CEO Mary Barra revealing plans to introduce next-generation internal combustion engine Cadillacs starting next spring and continuing through 2028. The new offerings will include updated versions of the CT5 sedan, XT5 midsize SUV, and XT6 three-row SUV, which will be offered alongside the company’s existing electric crossovers and Escalade SUV.

The announcement represents a notable shift from GM’s previous commitment to transition Cadillac to an exclusively electric brand by the end of the decade. The automaker has also scaled back EV ambitions across other nameplates and increased production capacity for traditional gas-powered engines, including high-performance V-8 options. This strategic realignment follows broader market headwinds and policy changes that have affected the electric vehicle sector.

The company has taken approximately $10.9 billion in charges related to its EV operations since the latter half of the previous year, driven by slower-than-anticipated adoption rates for electric vehicles and changes to U.S. regulatory frameworks that have reduced emissions mandates and eliminated certain EV incentives. As part of its restructuring efforts, GM is also planning to expand domestic manufacturing operations, with plans announced to relocate full-size SUV production to additional Michigan facilities. The Escalade, Tahoe, Suburban, and Yukon models are currently manufactured exclusively at the company’s Arlington Assembly plant in Texas.

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