In a surprising turn of events, General Motors (GM) appears to be pivoting away from its aggressive all-electric strategy for Cadillac in favor of extending the life of its gas-powered vehicles. This move signals a broader shift within the automotive industry as consumer adoption of EVs doesn’t quite match initial projections.
The catalyst for this change is Cadillac’s announcement that it will develop a new generation of its CT5 sedan, defying earlier plans to make the brand fully electric in the US (excluding the Escalade). Interestingly, this decision comes with the caveat that the smaller CT4 sedan will be discontinued in mid-2026.
The heart of Cadillac’s gasoline revival lies in a platform known as Alpha 2-2—an updated version of the rear-wheel drive architecture currently underpinning both the CT4 and CT5 sedans, as well as the recently discontinued Chevrolet Camaro. This suggests that GM might not abandon its iconic muscle car brand entirely.
While no official launch date has been set for the new CT5, its arrival is anticipated to replace the current model scheduled to cease production in 2026. The upcoming sedan will likely continue to offer a range of powertrain options—four-, six-, and eight-cylinder engines—culminating in the high-performance CT5-V Blackwing with its potent supercharged 6.2-liter V8.
Adding further fuel to the speculation fire, sources close to GM Authority reveal that a second vehicle based on this Alpha 2-2 platform is also in development. While specifics remain shrouded in secrecy, several possibilities emerge. The most obvious candidate is a seventh-generation Chevrolet Camaro, though electric iterations or an SUV wearing the Camaro badge are still conceivable.
Given the lukewarm reception of the all-electric Dodge Charger, it seems that American consumers aren’t ready to fully embrace battery-powered pony cars. A gas-powered successor to the sixth-generation Camaro could prove more palatable.
Another intriguing prospect is a resurrected CT5 coupe. While Cadillac hasn’t offered a two-door model since discontinuing the ATS coupe in 2019, a rear-wheel drive sports coupe built on the Alpha 2-2 platform could carve a niche for itself within a shrinking market segment.
Perhaps the most ambitious idea involves a rear/all-wheel drive Cadillac SUV—a spiritual successor to the original SRX. This option would necessitate a substantial investment to adapt the Alpha platform, primarily designed for sedans and coupes. GM might opt for its existing front- and all-wheel drive platforms like VSS-S (found in vehicles like the Chevrolet Equinox and Traverse) if it wants to explore new gasoline-powered SUVs under the Cadillac banner.
Despite this pivot towards petrol-powered vehicles in the US market, Cadillac is still doubling down on EVs in Australia. The brand re-entered the Australian market earlier this year with the electric Lyriq SUV, followed by the smaller Optiq and larger Vistiq electric SUVs planned for launch next year.
GM has chosen to import the GMC Yukon Denali as its three-row V8 offering in Australia instead of the closely related Cadillac Escalade due to Cadillac Australia’s EV-only strategy. This move highlights the nuanced approach GM is taking, balancing consumer demands and market realities while navigating a complex transition towards electrification.
