New Car Launches in the U.S. That Dodge Tariff Disruption

Cadillac’s Shift Towards Electric Vehicles

Cadillac, a subsidiary of General Motors, is making bold moves as it transitions to an all-electric future. In a surprising move, Cadillac announced it would discontinue the XT6, its midsize luxury SUV, after just six years of production. The XT6 will be replaced by an all-electric model, the Vistiq, signaling the company's shift away from traditional gas-powered vehicles to electric alternatives.

The shift towards electric vehicles (EVs) isn’t just a response to market demand for more sustainable cars—it’s also a strategic decision aimed at avoiding the growing costs of tariffs. Cadillac’s move to U.S.-based EV production reflects a broader industry trend towards local manufacturing to sidestep tariff impacts.

By focusing on domestic production, Cadillac is also positioning itself to meet the growing regulatory requirements around emissions. The Vistiq and other upcoming electric models will likely be produced in the U.S., and the shift to EVs is expected to account for 35% of Cadillac’s sales by 2025, up from 18% in 2024.

For more on Cadillac's electric future: Cadillac's All-Electric Transition.