Cadillac Discontinues Gas-powered SUV Amid Growing Sales to Make Space for Unaffordable EVs | Carscoops

      GM is retiring the XT6 to prioritize the production of new electric vehicles while prolonging the availability of another gasoline SUV.

      Cadillac will cease production of the XT6 this year to concentrate on electric crossovers.

      The new three-row Vistiq EV will take the place of the XT6 but begins at over $28,000 more than the XT6’s base price.

      The XT5 will continue to be manufactured until 2026 due to high customer interest.

      Cadillac might have scaled back its ambitions for an all-electric lineup, but it continues to push forward with EV production. Despite stepping away from its initial goal to become fully electric by 2030, plans are still evolving to make space for new electric vehicles, beginning with adjustments at one of its essential U.S. facilities.

      Production for the gasoline-powered Cadillac XT6 is set to conclude later this year at GM’s Spring Hill assembly plant in Tennessee. Launched in 2019, this three-row crossover is positioned between the smaller XT5 and the top-tier Escalade. The announcement of its discontinuation was revealed in an internal memo obtained by CNBC, which GM has subsequently confirmed. A representative stated that this decision is unrelated to the Trump administration’s broad auto tariffs.

      While the XT6 is being phased out, the smaller XT5 will remain in production for a while longer. Initially expected to end by late 2025, it will now be produced at least until 2026. However, the current model is aging, having debuted in January 2016 without a significant update. A second-generation XT5, featuring a longer body, was launched in China late last year, although Cadillac has not confirmed its introduction to the North American market.

      The memo also highlighted "strong customer demand" as the justification for extending the XT5’s production timeline. It was Cadillac’s third-best-selling model in 2024, with 26,432 units sold, a slight 1.4 percent decrease from 2023. It ranked behind the Escalade, which sold 41,001 units (a 1.7 percent drop), and the all-electric Lyriq, which saw a remarkable year-over-year increase of 210 percent to 28,410 units.

      Notably, the XT6 was the sole combustion engine model from Cadillac to see a sales increase last year, with 20,225 units sold—a 5.8 percent rise from the previous year. In Q1 2025, its sales remained steady at 4,778 units (up 3.7 percent), while the XT5 sold 6,353 units, reflecting a 1.2 percent increase compared to the same period last year.

      The exit of the XT6 makes way for Cadillac’s newest three-row electric crossover, the Vistiq. While it is comparable in size, it is positioned in a much higher price range, starting at $77,395, significantly above the XT6’s $49,195 base price. Some dealerships are already applying discounts, but a considerable price difference remains. Production of the Vistiq is already underway at the Spring Hill facility, which also manufactures the Lyriq.

      Additionally, the Spring Hill facility is scheduled to halt operations for the week of May 12. GM has confirmed this planned downtime and the related temporary layoffs, stating that this is necessary to better align inventory with the current market demand.