by Cadillac Continues the XT5 Line
Cadillac has confirmed plans to release the second generation of the XT5 model in the USA. The updated crossover will appear in 2027 and will likely be similar to the version sold in China. Production of the American XT5 will be launched in Tennessee, and under the hood, a turbocharged 2.5-liter engine might be found.
Initially, Cadillac planned to switch exclusively to electric models by 2030, hence it has already introduced a number of new products, including the Optiq, Lyriq, Vistiq, Celestiq, and Escalade IQ. However, the brand realized that the transition to electric vehicles is happening slower than expected.
Changes in the Lineup
This caused concern because the model range with internal combustion engines is aging. The XT4 ceased production earlier this year, and the XT5 could have followed suit, which would have deprived Cadillac of its second most popular car in the USA. However, General Motors decided to keep the model.
According to UAW documents, the current XT5 will remain on the market until the end of 2026, after which it will receive an update for the 2028 model year. Although details are still unknown, there is speculation that the American version will be similar to the Chinese one, which has become larger in size and received a design inspired by the Lyriq.
In response to high demand for this model, we have made the decision to keep the XT5 in our portfolio, which now combines new electric vehicles and updated ICE models like the Escalade. We look forward to launching the new generation XT5 in the second half of 2027.
The Chinese XT5 is equipped with a turbocharged 2.0-liter engine with a mild hybrid system, but the American version might get a 2.5-liter turbo engine with 328 horsepower, similar to the Buick Enclave and Chevrolet Traverse.
Cadillac’s decision to keep the XT5 demonstrates the flexibility of the brand’s strategy, which responds to market trends. Despite its electrification ambitions, the company does not want to lose customers who are not yet ready to switch to electric vehicles. Updating the model will allow it to meet demand and maintain competitiveness in the SUV segment.
