GM adds new gasoline Cadillacs as electric-vehicle plans are scaled back

General Motors will introduce a new generation of gasoline-powered Cadillac vehicles starting next spring, adding combustion models through 2028 as it reins in electric-vehicle ambitions that have already produced $10.9 billion in EV-related charges since the second half of last year. CNBC market data showed GM shares up 3.36%, or $2.55, on Tuesday, as investors assessed a product shift tied to slower EV adoption and a changed U.S. regulatory backdrop.

GM Chief Executive Mary Barra said on the company’s second-quarter earnings call that Cadillac’s next internal-combustion lineup will include new versions of the CT5 sedan, the XT5 midsize SUV and the three-row XT6 SUV, which had been discontinued.

“Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles,” Barra said on the call, referring to internal-combustion-engine vehicles. She said those models will sit alongside Cadillac’s current all-electric crossovers and Escalade SUV.

Cadillac retreats from an all-electric timetable

The announcement marks a further retreat from GM’s earlier plan for Cadillac to sell only electric vehicles by the end of this decade. The company has also scaled back EV plans across other brands and increased production of gasoline engines, including V-8 engines, CNBC reported.

An internal-combustion model relies on a gasoline engine rather than a battery-electric drivetrain. For an automaker, the choice affects product investment, supplier demand, factory tooling and the balance of capacity between engine, battery and vehicle assembly operations.

GM’s shift follows weaker-than-expected uptake of electric vehicles and policy changes in the United States. According to CNBC, the regulatory changes include relaxed emissions standards and the removal of support for EVs. GM has recorded $10.9 billion in EV-related charges since the second half of last year in connection with the changed market and policy conditions.

Factory plans move with product strategy

Barra also repeated that GM plans to bring a significant amount of manufacturing onshore beginning next year. Part of that plan involves expanding production of full-size sport utility vehicles to a Michigan plant that had previously been designated for electric-vehicle production.

GM’s full-size SUV family includes the Cadillac Escalade, Chevrolet Tahoe and Suburban, and GMC Yukon and Yukon XL. Those vehicles are currently built only at GM’s Arlington Assembly plant in Texas, according to CNBC.

The manufacturing adjustment shows how product strategy and industrial footprint are moving together. If GM adds gasoline Cadillac models and shifts more SUV output to Michigan, the company can use plant capacity that had been planned for EVs while keeping combustion models in its future lineup.

Cadillac will still sell battery-electric vehicles, according to Barra’s comments. The change is that the brand’s lineup will no longer be described by GM as moving exclusively to electric vehicles by the end of the decade.

This story draws on original reporting from CNBC.