GM Is Spending Millions On A New Cadillac With A Gas Engine

General Motors will invest $150 million to support a future combustion-powered Cadillac product.

Photo by: Cadillac

Anthony Alaniz

By: Anthony Alaniz

Jun 25, at 12:00pm ET

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General Motors will invest $275 million into its Spring Hill, Tennessee, facility.
$150 million will go ‘to support a future Cadillac internal-combustion product.’
The facility currently builds four models, and this future Cadillac will be its fifth.

General Motors recently announced that the company is investing $275 million into its Spring Hill, Tennessee, facility. Part of that investment—$125 million—will go to support the continued production of the automaker’s 2.7-liter engine. GM has earmarked the rest for a future combustion-powered Cadillac.

In the press release, the Detroit automaker said it would spend $150 million at the plant "to support a future Cadillac internal-combustion product." What product the factory will build is a mystery, but it’s likely something new.

2026 Cadillac CT4

Photo by: Cadillac

The facility currently assembles four vehicles: the Chevrolet Blazer, Cadillac Lyriq, Cadillac Vistiq, and Cadillac XT5. This new Cadillac product will be its fifth. GM assembles the Escalade alongside its trucks in Michigan, and the electric Optiq is built in Mexico.

The current-generation Cadillac CT4 and CT5 are on the way out, but the brand is developing a next-gen CT5 sedan with combustion power. Production is rumored to remain in Lansing, which might be built alongside a new Chevrolet Camaro and possibly a new Buick sedan.

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Considering the facility exclusively builds crossovers, we expect whatever future Cadillac product is coming will be the same, and it would make sense. The Escalade and XT5 are Cadillac’s only combustion-powered SUVs in a market that still craves the high-riding vehicles.

Motor1’s Take: With electric vehicle sales faltering and consumers continuing to prefer gas-powered vehicles, Cadillac’s decision to potentially introduce a new combustion model is a smart move. The current XT5 is a decade old, and it needs something fresh and different.