GM to end production of Cadillac XT4 as it shifts focus to electric vehicles

General Motors (GM) has said it would also stop producing its gas-powered Cadillac XT4 SUV in January, joining a line of other automakers going electric in favor of fossil fuel vehicles. And it comes after USD 390 million was invested to retool the Fairfax, Kansas, assembly plant to produce just the next-generation Chevrolet Bolt EV.

But GM had previously revealed both the Cadillac XT4 and Chevrolet Bolt would be built on the same assembly line starting in 2025. But now the company has chosen to give all the plant's resources exclusively towards EV production, which means it will no longer be producing the XT4. The Chevrolet Malibu, the last remaining Chevrolet sedan in the U.S. other than the Corvette, will stop being made this month, GM also confirmed.

The Cadillac XT4 saw sales decline in year to date with 12 percent drop in sales from the same period in 2019, moving just 17,807 units. As GM pursues an electric future, it is reconfiguring its output as demand for electric models surges. GM is shifting the focus of the Fairfax plant, where the both the XT4 and Malibu are currently produced, to build the Chevrolet Bolt, a move that’s part of GM’s plan to phase petrol offerings to emphasise electric models.

This is a big shift, with accompanying major employee shifts. The Fairfax plant would lose 1,695 workers when GM announced plans to lay them off. An initial round of firings is set to begin Nov. 18, targeting 686 full-time staff and 250 temporary employees with layoffs to continue in a second, one-third phase this fall. It means 759 full time jobs will be lost in a second round, on Jan. 12. But GM said it intends to recall these workers when the Bolt begins production again late next year.

Since launching in 1964, GM has sold more than 10 million Malibus worldwide, but the company has been shifting away from sedans in recent years, prioritising crossovers and SUVs. The Malibu’s departure marks another step in GM’s transition away from traditional cars, following the discontinuation of the Chevrolet Camaro last year.