GM axes Cadillac model to clear path for Bolt re-launch

General Motors is ending production of a gas-powered Cadillac SUV as it prepares to launch the next-gen Chevrolet Bolt.

Driving the news: General Motors will retire the Cadillac XT4 in January to make room at its Kansas facility to produce the Chevy Bolt. Production of the best-selling EV ended last year, but the company plans to renew the model starting in late 2025.

• While the automaker initially claimed that XT4 production would continue into next year, a Reuters report indicates the factory will exclusively manufacture Bolt EVs.

• XT4 sales have dropped off significantly in recent years, declining 28% in Q4 2023 and 12% over the first three quarters of 2024.

• The company has now axed two vehicles in favor of the Bolt, after announcing plans this summer to end production of the Chevy Malibu.

Zooming in:  General Motors continues to emphasize EVs in its plans, despite concerns over profitability and stagnating demand.

• The brand recently cleared 300,000 EV sales in the U.S., putting it at a distant second to Tesla.

• During an October meeting with financial analysts, the company stressed that it was approaching EV profitability, noting that it “nearing the crossover point for profitability for EV sales” thanks to a $2 billion reduction in fixed costs.

Bottom line: For now, EVs remain an important part of General Motors’ strategy, with the automaker going so far as to dedicate entire factories to a single electric model. But with the market in constant shift, it remains to be seen whether those plans stick.

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