GM Investing Big Bucks In A New Gas-Powered Cadillac | Carscoops

Cadillac was originally planning to go electric-only, but slower than expected adoption forced them to change course. This put the luxury brand in an awkward spot as their gas-powered lineup has grown old and some models – such as the XT4 and XT6 – have already gone out of production.

However, new ICE-powered models are on the horizon as the company has already announced plans to launch a redesigned XT5 in the second half of 2027. The automaker is also working on a new CT5, which will continue to be built at Lansing Grand River Assembly in Michigan.

More: Cadillac Confirms New Gas-Powered CT5 Sedan

That location is important to note as GM recently announced plans to invest $150 million into Spring Hill Assembly to “support a future Cadillac internal-combustion product.” As a result, it sounds like the funds pave the way for the new XT5. However, GM’s post is unclear, so we’ve asked for clarification.

Update: The luxury brand told us they are “not providing further detail” beyond the investment supporting a future internal-combustion product. This implies it could be related to an unannounced project.

The automaker hasn’t said much about the upcoming XT5, but the redesigned model is expected to echo the Chinese version that was introduced two years ago. It features a modern design that follows in the footsteps of the Lyriq and is larger than its predecessor.

While the current model clearly shows its age with analogue gauges and an 8-inch CUE infotainment system, the Chinese XT5 has a 33-inch curved display, semi-aniline leather seats, and a 126 color ambient lighting system. They’re joined by a panoramic sunroof, a 15-speaker AKG audio system, and a crystal-like knob that features a 3D Cadillac shield motif. Other highlights include wood and aluminum trim, and a digital rearview mirror with a 9.3-inch display.

It’s unclear what will power the US-spec model, but the Chinese variant has a turbocharged 2.0-liter four-cylinder that produces 233 hp (174 kW / 237 PS) and 258 lb-ft (350 Nm) of torque. It’s paired to a nine-speed automatic transmission, which enables the crossover to accelerate from 0-62 mph (0-100 km/h) in as little as eight seconds before hitting a top speed of 130 mph (210 km/h).

Engine Investment As Well

Sticking in Tennessee, Spring Hill Global Propulsion Systems is getting $125 million to support the turbocharged 2.7-liter four-cylinder engine. GM said the funds will be used to “refurbish equipment, extend the life of the 2.7L turbo engine program, and support continued production of an engine that powers important Chevrolet and GMC trucks, including Colorado, Canyon, Silverado and Sierra.”

This shouldn’t be too surprising as GM recently confirmed the 2027 Silverado 1500 will have an “enhanced” 2.7-liter turbo engine. Little is known about the powertrain, but it should outperform the current mill which generates 310 hp (231 kW / 314 PS) and 430 lb-ft (583 Nm) of torque.