Cadillac is restoring gasoline options after abandoning its previous target for an all-electric 2030 lineup.
Redesigned XT5, XT6 and CT5 models are expected to reach dealers beginning in 2027.
Cadillac’s U.S. sales fell 22% during the first half of 2026; dropped 8% in Canada over the same period.
Cadillac is quickly rebuilding parts of its gasoline-powered portfolio after moving away from its previous objective of offering an entirely electric lineup by 2030. This leaves dealers navigating product shortages until replacement vehicles arrive.
General Motors’ luxury brand has discontinued several internal-combustion models while developing their successors. The XT4 compact crossover and XT6 three-row crossover ended production last year, while production of the CT4 sedan ended this summer.
Cadillac now plans new versions of the XT5, XT6 and CT5. The next-generation XT5 is scheduled to arrive first in 2027, with the other redesigned models expected across 2027 and 2028. News about a new-generation CT5 had been circulating for some time, now we have confirmation.
This timetable creates an immediate retail challenge. Compact, midsize, and three-row crossovers and SUVs are key segments of the luxury market, and Cadillac currently offers only one option in Canada, the XT5, for buyers not ready to purchase an EV.
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The XT4 and XT6 previously generated about 40,000 U.S. sales annually combined. In 2025, Cadillac sold a combined 3,605 in Canada. Analysts warn that customers unable to find a vehicle in these categories could easily move to competing luxury brands and potentially remain with those manufacturers even when Cadillac’s replacement products reach dealerships.
The portfolio gaps are already coinciding with weaker results. Cadillac sold 66,923 vehicles during the first half of 2026, down 22% from the same period in 2025. Canadian sales have dropped a more modest 8.06% in the same period.
Cadillac CT5 2026 | Photo: CadillacDealers have therefore encouraged Cadillac to maintain sufficient gasoline-vehicle inventory during the transition. XT5 production is particularly important while they wait for additional models.
Cadillac, meanwhile, continues to invest in EVs. Its electric lineup has helped General Motors become the second-largest EV seller in the United States behind Tesla, while bringing new customers into Cadillac showrooms. Canadians made GM the number one EV seller last year, surpassing Tesla.
The revised product strategy recognizes that luxury buyers are adopting EVs at different rates. Kristian Aquilina, vice-president of global Cadillac, said the brand intends to offer customers a choice of powertrains while updating its internal-combustion portfolio.
Source: Automotive News
