In a surprise move, Cadillac announced it will end production of the popular XT4 crossover in January. The move frees up space at General Motors’ Fairfax Assembly Plant to switch over to the next-generation Chevrolet Bolt. The EV will go on sale a year from now as GM’s cheapest battery-electric model.
Cadillac will halt production of its best-selling XT4 crossover in January. It clears the way for GM to build the next-gen Chevy Bolt at the Fairfax plant.
The XT4 has been one of Cadillac’s best-selling models but parent General Motors has decided it isn’t selling well enough.
The compact crossover will end its run in January when GM begins retooling its Kansas assembly plant to begin production of the next-generation Chevrolet Bolt. Earlier plans called for a temporary pause on the XT4 line, with production set to resume later in the year alongside the EV.
The old Bolt was GM’s best-selling battery-electric vehicle and the automaker hopes to use it to gain traction in a market segment that has seen markedly slower growth this year. Chevy is betting it can steal a march against products like the Tesla Model Y by positioning Bolt as the most affordable long-range EV on the market.
Shifting plans
The Chevrolet Bolt was GM’s best-selling EV. An all-new version is set to arrive in the coming year as the automaker’s entry EV.
Precisely why Caddy’s entry crossover is being scuttled hasn’t been revealed. The XT4 originally debuted in 2018 and was a solid seller, offering an affordable way into the luxury brand. But sales have begun to slip as the crossover aged, tumbling 12% for the first nine months of 2024 compared to year-earlier figures. (GM only releases quarterly sales figures.)
Still, XT4 was one of the brand’s most popular models and, in some markets, such as Canada, outsold the bigger and more expensive XT5 and XT6 crossovers.
“General Motors is confident in our strong ICE and EV portfolio and will lean into growth opportunities guided by customer demand,” GM said in a statement.
“There is no change to our previously announced $391 million investment and staffing plans at Fairfax Assembly. This facility will continue to play a critical role in GM’s future with the new Chevrolet Bolt EV.”
Electrifying
The Optiq will serve as the brand’s base model, essentially fulfilling the current role of the XT4.
Cadillac isn’t walking away from the entry-luxury market. It’s just planning to go there in electric fashion.
The automaker already offers the Lyriq, a midsize battery-electric vehicle which has seen a steady growth in sales this year. It is preparing to launch two other products that will serve as dual brand halo vehicles: the battery-version of its most expensive SUV, the Escalade IQ, and an all-new, largely hand-built grand tourer, the Celestiq.
These will be followed by two more electric crossovers, starting with the Optiq which will serve as the brand’s base model, essentially fulfilling the current role of the XT4. The automaker hasn’t said much about Vistiq — though the 3-row package is expected to fill a niche between the midsize Lyriq and the full-size Escalade IQ.
More Cadillac News
- The 2024 Cadillac XT4 Isn’t Just a Baby Escalade
- Cadillac Teases its 5th EV, the Vistiq
- Caddy Still Wants a Hypercar – Will GM Give it the Green Light?
Plugging in with the Chevy Bolt
The original Chevrolet Bolt, launched in 2016, was GM’s first long-range battery-electric vehicle. By the end of its run Chevy offered two versions, the hatchback Bolt EV and the bigger Bolt EUV crossover. Before being pulled from production at the end of 2023 they positioned Chevy second only to Tesla in terms of total EV sales.
The automaker already offers the Lyriq, a midsize battery-electric vehicle which has seen a steady growth in sales this year.
The bowtie brand now has a suite of all-electric products, including the big Silverado EV pickup, as well as the midsize Blazer EV and compact Equinox EV crossovers. The new Bolt is expected to come in as the brand’s entry EV and, according to GM President Mark Reuss, it will be priced “only slightly higher than the 2023” model. Factoring in federal tax incentives should mean some buyers will get into a new 2026 Bolt for something in the low-$20,000 range.
The gap between gen-1 and gen-2 models reflects the switch from a unique electric architecture to a version based on the GM EV platform until recently known as Ultium. It also underpins products such as the Blazer and Equinox EVs. By sharing components and boosting volumes GM is betting it will be able to start turning a profit on the next Bolt, despite its low price tag.
What now?
GM is beginning to trim the workforce at Fairfax Assembly to prepare for the changeover from XT4 to Bolt. It will continue to expand those temporary layoffs over the next few months, with 759 more workers to be furloughed in January when XT4 production officially ends.
The carmaker plans to invest about $391 million to convert Fairfax for EV production. That’s relatively cheap compared to what GM — and competitors — have spent on other factory conversions for EV production. The project also will be quick, the Kansas plant set to resume production in time for the start of the 2026 model year.
GM also plans to begin building the new Bolt in China where it is locked in battle with a number of rapidly growing Chinese manufacturers hoping to dominate that market’s booming EV segment.
Probably three people that are disappointed. OK, at least two.