Automotive
Just when it seemed Cadillac was going all-in on electric, the brand has decided to pump the brakes, at least a little. While it continues to roll out new EVs under its bold electrification strategy, Cadillac is now making room in its future lineup for something more traditional. The XT5 crossover, a staple in the brand’s portfolio since 2017, is getting a next-generation refresh for 2027, powered not by electricity, but by gasoline.
According to a memo sent to employees at GM’s Spring Hill, Tennessee, plant—first reported by the Detroit Free Press, the XT5 will continue as a gas vehicle beyond 2026. GM later confirmed the memo’s legitimacy, signaling a clear change in tone from Cadillac’s previously stated goal of becoming an all-EV brand by the end of the decade.
But this pivot isn’t coming out of nowhere. Despite its age, the XT5 continues to perform well in the showroom. Sales have climbed 4.6 percent so far this year, with 12,727 units moved, making it Cadillac’s second-best-selling vehicle behind the Escalade. That kind of momentum is hard to ignore, especially in a time when EV adoption isn’t accelerating as quickly as some automakers expected.
What the next XT5 will look like is still a mystery. Cadillac hasn’t shared any specs or design plans yet, but it’s likely the updated model will feature revised styling and a refreshed interior rather than a complete overhaul. Some believe it could borrow cues from the version currently sold in China, which sports more modern design elements and updated tech. A hybrid powertrain might also be on the table, offering a middle ground for buyers not quite ready to go full electric.
Meanwhile, the XT4 and XT6 appear to be on their way out as Cadillac clears room for a growing fleet of EVs. That makes the XT5’s survival even more interesting—it’s a sign the brand isn’t letting its EV ambitions override what the market is actually asking for.
Cadillac’s future is still electric, but this move shows it’s open to adapting as needed. By doubling down on a strong seller like the XT5, the brand isn’t just playing it safe—it’s playing it smart. Buyers want choices, and Cadillac seems ready to offer them, even if that means holding onto a gas-powered classic just a little longer.
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Mike Floyd is a finance executive by trade and a car enthusiast at heart. As a CFO with a keen eye for detail and strategy, Mike brings his analytical mindset to the automotive world, uncovering fresh insights and unique perspectives that go beyond the surface. His passion for cars—especially his favorite, the Porsche 911, fuels his contributions to Automotive Addicts, where he blends a love for performance and design with his professional precision. Whether he’s breaking down industry trends or spotlighting emerging innovations, Mike helps keep the site both sharp and forward-thinking.
