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Learn More: Troubled Japanese Car Manufacturer Introduces 3 New Electric Vehicle Models
A big Cadillac SUV is heading towards the horizon as the sun sets.
General Motors has verified that it will discontinue the production of the XT6, a three-row gasoline-driven SUV, at the end of this year.
The phase-out will enable Cadillac to reallocate resources at its Spring Hill, Tennessee, facility away from the less successful SUV models and progress with the brand’s significant shift towards electrified vehicles.
The XT6, introduced in 2019 as Cadillac’s response to the premium minivan segment, struggled to establish itself.
Given its starting price of over $50,000, buyers opted for more affordable General Motors’ three-row alternatives such as the GMC Acadia, Buick Enclave, and Chevrolet Traverse, which shared similar mechanical components.
Cadillac averaged fewer than 20,000 sales annually for the three-row SUV. In-city driving consumed one gallon of fuel approximately every 21 miles.
Instead, the car manufacturer is increasing production of the two other models it manufactures at the Tennessee plant: the Vistiq and Lyriq crossover electric vehicles.
The XT6’s production change follows a similar transition that previously led to the success of the top-selling XT4.
on the cutting room floor in January
.
The smaller XT4, which Cadillac built in the Fairfax Assembly plant in Kansas City, Kansas, was sent out to pasture as GM starts production of its Chevy Bolt EV.
‘As Cadillac evolves, we will continue to make necessary adjustments to our portfolio to meet customer demand,’ a Cadillac spokesperson told ecosundiaries.com.
Cadillac’s production facilities have gone through a series of major changes: the company announced this week that it
temporarily laid off 200 workers at a Detroit factory
that builds some of its most expensive EVs.
Meanwhile, the company has seen record growth for two models: its iconic, high-end Escalade and its first EV, the Lyriq.
The Lyriq has quickly become the automaker’s third-best selling car.
In an internal memo to employees, GM cited the brand’s broader shift toward an all-electric future – not tariffs or policy changes – as the driving force behind the decision.
GM previously said it wants the Cadillac division to
only sell EVs by 2035
, but has subsequently altered its stance.
“If certain elements lead to reduced electric vehicle demand, we have an extensive internal combustion engine lineup ready to increase production beyond our current projections for this year,” stated GM’s CEO, Mary Barra, during a January earnings call.
For more than a year, Cadillac has been restructuring its range of vehicles, introducing six newly designed or updated models that cover both conventional gasoline-powered options as well as electric ones.
The brand’s latest offerings—the Escalade IQ, Vistiq, Optiq, and the forthcoming Celestiq—are all electric vehicles.
The gas-driven CT5 sedan and Escalade underwent mid-cycle refreshes for the 2025 model year.
Cadillac’s EV shift got off to a strong start: the company sold 43,982 electric units in the final three months of 2024.
While Cadillac’s moves away from the XT4 and XT6 SUVs weren’t attributed to
President Donald Trump’s 25 percent tariff policy
on vehicles, GM remains
extremely exposed
regarding the updated tax policy.
The firm runs manufacturing plants in nations that entered into free-trade pacts with the U.S., which were initiated during Trump’s initial term, such as Mexico and Canada.
Now, a majority of the brand’s US sales are imported vehicles from these countries.
GM announced last week that it was
ramping up production
of its expensive full-size pickups that are built in the US in response to the tariffs.
Other automakers have had a mix of responses: Ford
rolled out employee discounts
for American shoppers, Volkswagen Group said it would start
displaying the ‘import fee’
On the stickers of new vehicles, and Stellantis
laid off 900 workers
at American stamping facilities.
In general, these tariffs aim to bring American manufacturing capabilities back home.
But a
ecosundiaries.comanalysis shows
That policy aim could result in a significant number of drivers purchasing electric vehicles.
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