General Motors has announced a significant shift in its plans by bringing back gasoline-powered vehicles it had previously discontinued and slowing down its electric vehicle (EV) rollout. The company is focusing again on internal combustion engines (ICE), with new gas-powered Cadillac and Chevrolet models set to arrive over the next few years.
Cadillac Returns to Gas Engines with New Models
Cadillac, which had aimed to go fully electric by 2030, is now stepping back from that timeline. CEO Mary Barra confirmed that new gasoline-powered models will launch starting in 2027, including an updated version of the midsize crossover XT6, which was discontinued in 2025.
The XT6 will return as part of Cadillac’s next generation of ICE vehicles, with production set to begin in mid-2028 on an updated GM C1 platform. Alongside the XT6, Cadillac will also release a new generation of the CT5 sedan, including performance variants like the CT5-V and the CT5-V Blackwing powered by a V8 engine. The Blackwing is expected to arrive as a 2028 model year vehicle, slightly after the base CT5.
Chevrolet Shifts Focus Away from EVs to Gasoline Models
Chevrolet will discontinue its second-generation Bolt EV in mid-2027 after just 18 months on the market. The company plans to repurpose its Kansas plant to build a new gas-powered crossover instead. Additionally, Chevrolet is reportedly developing a new sedan with an internal combustion engine, possibly reviving the four-door Camaro, which could feature the recently introduced 6.7-liter LS6 Small-Block V8 engine from the Corvette lineup.
Reasons Behind GM’s Strategic Change
GM’s shift is influenced by recent market trends, including a slowdown in EV adoption and changes in U.S. regulations. The automaker has recorded $10.9 billion in EV-related charges since late last year due to slower sales than expected. Eased emissions standards and the reduction of electric vehicle tax incentives have made traditional gas-powered vehicles more profitable in the short term.
To balance its production, GM is moving full-size SUV manufacturing to a Michigan plant that was originally planned for EV production. Meanwhile, models like the Cadillac Escalade, Chevrolet Tahoe and Suburban, and GMC Yukon will continue production at GM’s Arlington Assembly Plant in Texas.
This return to ICE vehicles marks a notable pivot from GM’s previous all-in bet on electrification, highlighting a more cautious approach in response to market and regulatory shifts.
Source: autoevolution.com