Cadillac just admitted its all-electric future isn’t happening on the timeline it promised. That reversal is great news if you’ve been eyeing a Cadillac XT5. GM CEO Mary Barra confirmed during the company’s second-quarter earnings call that Cadillac will launch next-generation gas-powered vehicles. That includes a redesigned XT5, starting next spring and running through 2028. It’s a real step back from the brand’s 2019 pledge to sell nothing but EVs by 2030.
So what does this mean if you’re actually shopping for a midsize luxury SUV today? Here’s the honest breakdown.
What exactly did Cadillac just announce?
Cadillac will keep building gas-powered vehicles well past 2030. That reverses its original all-electric-by-2030 pledge. New versions of the CT5 sedan, XT5, and XT6 are arriving between spring 2027 and 2028. GM CEO Mary Barra made the announcement directly during a Q2 2026 earnings call. She tied it to a broader pullback on EV investment across the company.
The move comes with a price tag. The gas-powered pivot adds to roughly $10.9 billion in EV-related charges GM has booked since mid-2025. GM is even shifting a Michigan plant once slated for EV production back to building full-size SUVs like the Escalade and Chevy Tahoe. This isn’t a minor tweak to Cadillac’s strategy. It’s a genuine reversal.
Why is the current XT5 sticking around so long?
The current Cadillac XT5 has been on sale since 2017 with only a mid-cycle refresh. But sales are actually climbing, up 4.6 percent with over 12,700 units sold. It’s Cadillac’s second-best-selling model behind the Escalade. That’s exactly why GM confirmed it won’t kill the nameplate. It’s one of the few things propping up Cadillac showrooms right now.
That popularity matters because Cadillac’s overall lineup is thinning out fast. The XT6 disappeared after 2025 in favor of the electric Vistiq. The CT4 is being retired after 2026 with no gas replacement confirmed. Cadillac’s total sales actually dropped 22 percent in the first half of 2026 compared to a year earlier. Dealers are openly worried customers will defect to Genesis while Cadillac’s lineup has gaps in it. If you’re comparing three-row luxury SUVs, our breakdown of why the Genesis GV80 beats the discontinued Cadillac XT6 lays out exactly why that competitive pressure is real.
Is the current Cadillac XT5 actually worth buying now?
Yes, if you want a straightforward, reasonably priced luxury SUV and don’t care about cutting-edge tech. The current XT5 is a known quantity with strong reliability scores and real dealer incentives. It’s not exciting, but it’s proven. And Cadillac is clearly not walking away from it.
The 2026 XT5 starts around $46,595 for the front-wheel-drive Luxury trim. It tops out near $64,595 for the AWD Sport model with its 3.6-liter V6. Reviewers note it’s an aging design with an 8-inch touchscreen that feels small by today’s standards. It can’t match newer rivals on refinement or fuel economy either. But it earns strong owner reliability ratings. And dealers are currently offering real cash allowances and low-APR financing to move units.
| Trim | Engine | Horsepower | Starting MSRP |
|---|---|---|---|
| Luxury FWD | 2.0L Turbo I4 | 235 hp | ~$44,800–$46,595 |
| Premium Luxury AWD | 2.0L Turbo I4 | 235 hp | ~$55,600 |
| Sport AWD | 3.6L V6 | 310 hp | ~$62,800–$64,595 |
Should you wait for the redesigned XT5 instead?
If you can hold off until the next-generation XT5 lands, do it. You’ll likely get updated styling and modern tech. There’s also a possible hybrid option, without losing the gas engine you actually want. Cadillac hasn’t detailed exact specs yet. But the redesign is confirmed for the 2027-2028 window. It’s supposed to complement, not replace, the brand’s electric lineup.
The catch is timing uncertainty. GM’s own dealers are bracing for inventory gaps in the meantime. One dealer group executive put it plainly. He said he’d rather absorb the carrying costs of extra gas inventory than lose customers to rivals. If your current vehicle is on its last legs, don’t gamble on a redesign that’s still a year-plus out. Buy the current XT5 with today’s incentives instead of waiting on a vehicle GM hasn’t even shown yet.
What if you’re open to an EV instead?
Cadillac still sells the Lyriq, Optiq, Vistiq, and Escalade IQ. The brand hasn’t abandoned electric vehicles. It’s just no longer betting the whole business on them. If you’re weighing whether an EV actually makes financial sense for your situation, our decision framework for buying an EV in 2026 walks through the real math. And our EV total cost of ownership guide breaks down what you’ll actually spend versus a gas SUV like the XT5 over five years.
My take: buy the current XT5 now if you need a vehicle this year. You’ll get Cadillac reliability at a reasonable price. If you can wait until 2027, the redesigned model is worth the patience. Just don’t expect Cadillac’s dealer network to feel fully stocked in the meantime.
FAQ
Is Cadillac still making the XT5 in 2027?
Yes. GM confirmed a next-generation, gas-powered XT5 will launch starting in spring 2027 and continuing through 2028, alongside a redesigned CT5 and XT6.
Did Cadillac cancel its all-electric plan completely?
No, but it walked back the timeline significantly. Cadillac originally promised to sell only EVs by 2030. It now plans to sell new gas models well beyond that date, while keeping EVs like the Lyriq and Escalade IQ in the lineup.
Why did Cadillac’s sales drop in 2026?
Cadillac’s U.S. sales fell 22 percent in the first half of 2026 compared to the year before. Part of the reason was discontinued models like the XT6 and CT4 leaving gaps before their replacements arrived.
Is the 2026 XT5 a good deal right now?
It’s a solid value if you want a proven, mid-size luxury SUV at a lower price than most rivals. Dealers are currently offering cash allowances and low financing rates to move remaining inventory before the redesign arrives.