General Motors is reversing its earlier plan for Cadillac to be an all-electric brand by the end of this decade, announcing new gas-powered versions of flagship models, including the CT5 sedan, the XT5 midsize SUV, and the previously discontinued three-row XT6 SUV. These internal combustion engine (ICE) vehicles are set to launch starting next spring and will continue rolling out through 2028. This move signifies GM’s shift away from its earlier aggressive push toward exclusive EV production within its Cadillac lineup.

GM’s CEO Mary Barra explained that these new ICE Cadillacs will complement the current all-electric crossovers and Escalade SUVs already in Cadillac’s lineup. The decision reflects a broader pullback in GM’s overall electric vehicle strategy amid lower than expected EV adoption rates and recent changes in U.S. regulatory policy, which have relaxed emissions standards and removed some incentives for electric vehicles. This strategic pivot also aligns with GM’s recent operational adjustments, including expanded production of gas-powered engines and increased focus on traditional powertrains.

Since the latter half of 2025, GM has absorbed $10.9 billion in EV-related charges, a financial consequence underlining the challenges it faces in meeting earlier ambitious EV targets. The automaker is also moving to “onshore” more manufacturing, notably shifting some full-size SUV production from its Arlington Assembly plant in Texas to a facility in Michigan originally planned for EV manufacturing. These vehicles — including the Escalade, Chevy Tahoe and Suburban, and GMC Yukon models — remain a critical part of GM’s product portfolio and revenue.

These developments highlight GM’s recalibrated approach to its vehicle lineup in the face of shifting market demands and regulatory conditions. The company is balancing investments in both traditional gas-powered vehicles and electric models, aiming to stay competitive during a transitional period in the automotive industry. GM’s latest announcement signals a more diversified strategy, with Cadillac at the forefront of this change, offering a mix of ICE and EV vehicles to meet varied consumer preferences over the coming years.