GM Pours $150 Million Into New Gas-Powered Cadillac as EV Rollout Stalls

General Motors is betting big on internal combustion with a $150 million investment to build a new Cadillac at its Spring Hill, Tennessee plant.

The move marks a sharp pivot from the automaker’s original plan to go electric-only, a strategy that has been dialed back due to slower-than-expected EV adoption.

The new Cadillac, which will be ICE-powered, arrives as the brand’s gas-powered lineup has grown stale—several models, including the XT4 and XT6, have already been discontinued.

A redesigned XT5 is slated to debut in the second half of 2027, likely benefiting from the Tennessee facility’s upgrade.

GM is also developing a new CT5 sedan, which will continue to be produced at Lansing Grand River Assembly in Michigan.

The Spring Hill investment includes $125 million earmarked for Spring Hill Global Propulsion Systems to refurbish equipment and extend the life of the 2.7-liter turbocharged four-cylinder engine program.

This powertrain currently powers key Chevrolet and GMC trucks such as the Colorado, Canyon, Silverado, and Sierra, and is set to receive an “enhanced” version for the 2027 Silverado 1500.

While details on the U.S.-spec XT5 remain scarce, the Chinese-market XT5 offers a glimpse of what’s to come.

That model features a 33-inch curved display, semi-aniline leather seats, a 126-color ambient lighting system, a panoramic sunroof, a 15-speaker AKG audio system, and a crystal-like knob with a 3D Cadillac shield motif.

Interior highlights also include wood and aluminum trim and a digital rearview mirror with a 9.3-inch display.

The Chinese XT5 is powered by a turbocharged 2.0-liter four-cylinder engine producing 233 HP (174 kW / 237 PS) and 258 lb-ft (350 Nm) of torque, mated to a nine-speed automatic transmission.

This setup enables a 0-62 mph (0-100 km/h) sprint in eight seconds and a top speed of 130 mph (210 km/h). GM has not confirmed whether the U.S. version will use the same engine or powertrain configuration.