General Motors Stops Cadillac XT4 Production Amid Shift to EVs

General Motors has announced that it will cease production of its gas-powered Cadillac XT4 SUV at the Fairfax Assembly plant in Kansas starting January 2025. The decision comes as the company has seen a decline in sales, with Cadillac XT4 sales down 12% and Malibu sales down 16% since the beginning of 2024. This production halt is part of GM’s broader strategy to pivot towards electric vehicles, as the company has already paused production of the Chevrolet Malibu, effective November 2024. Following the shutdown, the Fairfax plant will undergo retooling to support the production of the next generation of Chevrolet Bolt EVs, with this production expected to resume in late 2025. To facilitate these updates, GM has committed an investment of approximately $390 million. The shift in focus to electric models is also reflected in GM's recent success, as the company ranked as the second best-selling EV manufacturer in the U.S. in the third quarter of 2024, trailing only Tesla. As Tesla continues to lead with substantial sales figures, GM is striving to expand its electric vehicle lineup, which is currently the largest among major competitors. While GM sold over 32,000 EVs last quarter, this is still less than Tesla's impressive 166,923 unit sales. The company’s transformation indicates a commitment to sustainability while adapting to changing consumer preferences in the automotive market. In summary, GM is redirecting its resources towards electric vehicles, resulting in the discontinuation of certain gas-powered models as part of its strategic shift in response to declining sales and increasing competition in the EV sector.