General Motors (GM) announced it would be shelving another gas-powered vehicle. The Fairfax, Kansas, factory that produces the Cadillac XT4 and Chevy Bolt will now only make the electric hatchback. The Cadillac SUV joins a growing list of GM models being phased out.
The XT4 will cease production in January. It is the cheapest SUV in the Cadillac lineup; however, sales are slipping, and electric vehicles (EVs) are going up. GM investor reports from the third quarter (Q3) showed an 8–9% increase in American EV presence. The company sold 32,095 EVs in Q3 as its lineup became more reliable. The next-gen Bolt is expected to boost sales in addition to the arrival of the Chevy Silverado EV.
Cadillac’s electric lineup is also growing. The Lyriq, Celestiq, Optiq, and Visitq are either here or are arriving in a few years.
The Escalade IQ, the electric version of the flagship big-rig SUV, is expected to arrive in late 2024. Retail sales were up 3% in Q3, the best performance since the third quarter of 2016.
“GM’s EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everybody, no matter what they like to drive,” Rory Harvey, GM’s executive vice president and president of Global Markets, said in a news release.
Photo Courtesy Ray Dumas
GM has been building more SUVs and crossovers than sedans. The company already discontinued the Chevy Malibu and the iconic Camaro. SUVs sell better than any other vehicle except pickup trucks, though the two often trade spots.
That’s an American car market trend more than just a GM-specific trend. From a business perspective, it makes sense to double down on SUVs, crossovers, and pickup trucks. Not to mention, top-selling sedans in the U.S. come from Asian or European brands.
The Bolt is finally catching up with its competitors. 2023 was the best year-to-year sales, with more than 62,000 units sold. GM sold its 300,000th EV this year, so the company is committing further to EV production.
The new Bolt arrives in late 2025 and will have its offshoots like the Bolt EUV. The Chevy Equinox is also a popular e-SUV. GM’s EVs sell well exactly for the reason Harvey said. The low price and the tax credit qualification play a role, too.
Photo Courtesy Edmunds
Unfortunately, the Kansas factory shutting down XT4 production has some blowback. The plant plans to lay off around 1,700 workers starting Nov. 18. Another round of layoffs will come in January when the XT4 comes off the production line. However, once the Bolt starts production, full-time employees will be recalled.
More EVs are expected to join the lineup. Buick was expected to launch the Electra E5 at some point, but those plans are up in the air in July due to waning EV interest and the regulatory environment. GM hasn’t said when the Buick electric SUV will arrive.
The success of EVs from a business perspective has had its ups and downs, but 2024 has shown a much greater commitment to them. Some brands have shrunk their lineup or pivoted to hybrid variations of automakers’ flagship vehicles. The expansion of EV charging, federal tax incentives, and more quality, affordable EVs are enticing consumers toward them over gas.
