GM Significantly Adjusts EV Strategy: Cadillac XT5/XT6 Gasoline Versions to Return in 2027

General Motors is significantly slowing its electrification pace. Following its Q2 2026 earnings release, CEO Mary Barra confirmed that Cadillac's next-generation internal combustion engine (ICE) vehicles will launch starting spring 2027 — including refreshed CT5 sedans, XT5 SUVs, and three-row XT6 SUVs. This move marks a substantive retreat from the luxury brand's earlier pledge to go fully electric by 2030.

Notably, these new gasoline-powered models will be sold alongside Cadillac's existing electric SUVs. Although Cadillac had aggressively pursued electrification, its current strategy has shifted toward an 'ICE-and-EV coexistence' approach. Meanwhile, Chevrolet is also scaling back its all-electric lineup: the current Bolt EV RS will remain in limited production only until year-end 2026, then be replaced by an all-new gasoline-powered crossover built in Kansas.

The Chevrolet electric models still on sale include the Equinox EV, Blazer EV, and Silverado EV. According to Automotive News, the electric Blazer may receive a 'major refresh' in 2028, and the Equinox EV could see a concurrent upgrade — but GM has not confirmed either.

Financially, GM has accrued $10.9 billion in EV-related expenses since H2 2025, of which $7.2 billion represents actual cash outlays; as of the end of Q2 2026, $4.5 billion has been paid. Despite this, the company raised its full-year adjusted profit forecast to $14–16 billion.

Market response is even more sobering: In the first half of 2026, Chevrolet remained the U.S.'s second-largest EV brand (behind Tesla), yet its top-selling EV — the Equinox EV — was overtaken by the Hyundai IONIQ 5, which jumped to third place among best-selling EVs nationwide; TOYOTA's bZ series also outsold the Equinox EV in the first half. Facing intense competition from the Rivian R2, BMW iX3, and Tesla Model Y L — among other next-gen rivals — GM's return to gasoline power is drawing industry skepticism. Duncan Aldred, GM's North America president Quattroporte, acknowledged in May: "Data shows that once customers choose an EV, they're highly likely to buy another EV next time."