Cadillac Admits It Moved Too Quickly Away From Gas-Powered SUVs

Not long ago, Cadillac made it clear that its future would be all-electric. The luxury brand phased out several gasoline-powered models as it shifted its focus toward EVs, expecting buyers to embrace the transition.

The market, however, has been slower to follow.

Sales numbers from the first half of the year highlight the challenge. The aging Cadillac XT5 attracted 11,107 buyers, while the all-electric Lyriq—widely viewed as its spiritual successor—recorded 7,578 deliveries over the same period.

The gap is even more striking in the three-row SUV segment. During the first six months of last year, Cadillac sold 9,637 XT6 crossovers before the model was discontinued. Its electric replacement, the Vistiq, managed just 3,903 sales during the first half of this year. At that pace, the Vistiq is unlikely to match the XT6's six-month total even over a full calendar year.

With demand falling short of expectations, Cadillac appears ready to adjust its strategy.

Cadillac Vice President John Christian Aquilina recently confirmed that the automaker is preparing an all-new XT6. While emphasizing that Cadillac remains committed to vehicle electrification, he acknowledged that market conditions have changed.

According to Aquilina, the company is reshaping its product lineup to better align with what luxury buyers are actually looking for. A key part of that strategy will be the launch of a next-generation XT6 alongside an all-new XT5.

He added that Cadillac will continue investing in electric vehicles but also plans to place greater emphasis on internal combustion models, where customer demand remains strong.

The shift amounts to a tacit acknowledgment that Cadillac may have leaned too heavily into its EV strategy before the market was ready. Rather than abandoning electrification, the brand is broadening its portfolio to include a stronger mix of gasoline-powered models.

The upcoming XT5 and XT6 are expected to share much of their engineering. They will likely draw heavily from the latest XT5 introduced in China in 2024, which could serve as the foundation for the next generation of Cadillac's global midsize SUVs.

Current plans call for the redesigned XT5 to reach dealerships next year, with the new XT6 expected to follow in early 2028.