Only One Cadillac Might Endure the Transition from Gas to Electric | Carscoops

      Earlier this year, Cadillac ceased production of the XT4, and the XT6 will soon follow suit.

      

      Cadillac has introduced a significant number of electric vehicles (EVs) to its lineup, while discontinuing several of its internal combustion engine (ICE) models.

      At this pace, the Escalade might become Cadillac’s last combustion-engine vehicle.

      General Motors is formulating strategies for the fourth quarter following the expiration of the federal EV tax credit.

      Although Cadillac has broadened its electric vehicle offerings more than ever, changing consumer preferences in the United States could pose challenges to its all-EV strategy. With the demand for electric vehicles decreasing, the company may need to reassess its ambition of evolving into an EV-only brand by 2030.

      The last quarter of this year may particularly test the brand, as the federal EV tax credit is set to expire, likely making new and used electric vehicles less affordable for a significant number of buyers.

      GM's premier brand has experienced a notable transformation in the past few years. It initially introduced the all-electric Lyriq SUV, followed by the electric Optiq and the three-row Vistiq. Furthermore, Cadillac aims to reclaim its status as the ‘Standard of the World’ with the Celestiq, and has rolled out two electric variants of the Escalade, known as the IQ and IQL.

      Navigating a Changing Market

      Despite these investments, Cadillac is taking a cautious approach to the market. According to John Roth, global vice president of Cadillac, the brand remains open to adapting its powertrain strategy as necessary.

      "It’s crucial in this ever-evolving marketplace to ensure that you’re aligning with customer needs," he stated. "The auto industry is never linear, so to impose rigid strategies, you need the flexibility to pivot when appropriate."

      As Auto News highlighted, more manufacturers are recognizing the necessity of offering both gasoline and electric models simultaneously, with consumers ultimately guiding the pace of this transition. Roth confirmed that GM is actively planning for the fourth quarter in anticipation of the tax credit's conclusion.

      Reduction in Gasoline-Powered Offerings

      While Cadillac has expanded its electric vehicle range, its lineup of gasoline-powered models has significantly decreased. The company recently ended production of the XT4, with the XT6 also expected to be discontinued later this year.

      The XT5 is likely to remain part of the lineup only until 2027. Meanwhile, the factory producing the CT4 and CT5 sedans is undergoing conversion to focus solely on electric vehicles. This transition could eventually result in the Escalade being the last gasoline-powered Cadillac available.