It seems odd that GM was ready to axe the Cadillac XT5 before the 2027 model year, but now it’s on the comeback trail to enter a new generation.
GM was ready to axe the XT5 completely, but now they’re bringing back their best-selling Cadillac for 2027 with a major makeover. We’re talking about hybrid power, a massive curved screen from the Lyriq, and fresh styling that actually looks like it belongs in this decade. Here’s what changed their minds and why this comeback could shake up the luxury SUV game.
The axe was raised, but the XT5 still has a head
The Cadillac XT5 redesign is long overdue. This SUV replaced the popular SRX for the 2017 model year, presenting a new naming strategy for the brand’s SUVs. Since that time, the XT5 hasn’t been completely redesigned or updated to a new generation. Although it’s kept up with modern times, it has fallen woefully behind other luxury SUVs. It’s time for a Cadillac luxury SUV comeback with this new generation of the XT5 which will begin with the 2027 model year.
good news for Tennessee
Currently, the XT5 is built at the GM facility in Spring Hill, Tennessee, and production will continue for the new generation. This means the 2027 Cadillac XT5 will continue to provide jobs and security to the people in that area. This new model will bring a refreshed style inside and out, and it’s expected to use a Cadillac curved display that comes from the Lyriq. This could give the new XT5 a spectacular new look across the dashboard.
As the new XT5 joins other 2027 model year vehicles, other changes will take place to make this SUV more modern than ever before.
The Spring Hill production facility is where Cadillac builds the all-electric Lyriq and Vistiq models, which helps make it easy to understand why the new XT5 screen would come from the Lyriq.
“As Cadillac evolves, we will continue to make necessary adjustments to our portfolio to meet customer demand. The current-generation Cadillac XT5, an important part of our global portfolio, will remain in production until the end of 2026. The XT5 will continue to live on as a next-generation gas-powered vehicle beyond that timeframe.”
– Kevin Kelly, Cadillac spokesman to the Detroit Free Press
Will the XT5 be a hybrid?
A new hybrid Cadillac SUV could be part of the XT5 lineup. Currently, there’s a hybrid version sold in China, which could easily make the transition to North America. Will this become part of the GM luxury vehicles sold here, or will Cadillac avoid bringing hybrid power to North America? The hybrid version sold in China has a 2.0-liter turbocharged four-cylinder engine and electric motor that produces 233 horsepower and 258 lb-ft of torque. Adding this powertrain to the mix would mean the XT5 wouldn’t lose anything in terms of performance compared to the current four-cylinder engine.
Current powertrains
While waiting for the 2027 Cadillac XT5 to arrive, the current model will end the first generation with the 2026 model. For 2026, the powertrain offerings are a 2.0-liter turbocharged four-cylinder engine producing 235 horsepower and a 3.6-liter V6 that delivers 310 horsepower. These engines mate to a nine-speed automatic transmission that sends power to either the front wheels or all four, giving drivers an AWD SUV with all the luxury features desired of a Cadillac SUV.
The six-cylinder setup is extremely quiet while cruising along the highway. You won’t hear it unless you push the accelerator hard, but then you hear this engine kicking in and letting you know it’s working hard.
A value-oriented SUV
The good news for the 2026 Cadillac XT5 is that the next-generation model is right around the corner. Cadillac needs to step up its game to provide a much better driving experience if it wants to keep up with the big dogs in this group. Adding a new hybrid powertrain could be the right step forward and help Cadillac become a value-oriented luxury brand with the XT5. Of course, the brand stretches to some of the most expensive EVs available, which means a wide range between the two.
A new 2027 Cadillac XT5 is right around the corner. This new generation will have the necessary upgrades that allow it to continue to be a top seller for the brand. It might seem strange that GM would consider axing its most popular vehicle, but it was falling behind the rest of the luxury SUVs in its class. Now, the XT5 will live on as a new model that could also be a hybrid when it arrives.
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