General Motors' (GM) luxury brand is making changes to its gas-engine sedan lineup. Cadillac will end production of the CT4 compact car in the summer of 2026, but the midsize CT5 isn’t going anywhere: there will be a second generation. It might just take a while before it's at dealerships.
The decision means production of gasoline-powered vehicles will continue at the Lansing Grand River plant in Michigan, a site that was initially slated to build GM's electric models.
The CT4 takes its leave, the CT5 continues on
Cadillac says production of the CT4 will continue until June 2026, while the current CT5 will remain on the lines until the end of next year. Afterward, the plant will assemble a new generation of the CT5 for the North American market.
No launch date has been announced yet, but according to Automotive News, the new CT5 could arrive by 2028. The current model already received a refresh for the 2025 model-year.
A $1.25 billion investment in Lansing Grand River
As part of its 2023 agreement with the UAW union, GM committed to investing $1.25 billion USD in the Lansing Grand River plant. Initially, that sum was intended to support the site's conversion to electric vehicle production.
The U.S. Department of Energy even approved $500 million USD in funding to support that transformation. Much has changed since then, however, and the funding is now reportedly on a list of grants the Trump administration is considering canceling. The Department has not confirmed that information.
GM stays the course despite uncertainties
Despite the potential loss of funding, GM says it will continue its investment in Michigan. "The end of current production will allow GM to undertake significant renovation and improvement work as part of its $1.25 billion USD investment," a company spokesperson stated.
These improvements will include a complete modernization of the paint shop, new conveyors and control system updates, as well as the installation of state-of-the-art welding and sealing equipment.
An electric transition postponed
Cadillac—like several other GM brands—is slowing its transition toward a fully electric lineup. While the brand had initially planned to become 100-percent electric by 2030, lagging demand and investment revisions are now forcing a more gradual approach.