The second-generation Cadillac XT5, unveiled at the Cadillac House in Shanghai just a few months ago, marks a significant improvement in nearly every aspect compared to its first-generation predecessor. With a completely overhauled exterior and interior, one could argue that the next-gen XT5 would be a perfect fit for North America, but the unfortunate truth is that it won’t be sold stateside. In Episode 12 of the Cadillac Society podcast, we examine exactly why that is.
This episode is a deep dive into the next-gen Cadillac XT5, but we address the luxury crossover’s absence in North America around the 23:21 minute mark.
As a reminder, the second-gen XT5 still rides on the C1 platform that underpins the current model, but it’s been updated enough to earn the C1-2 moniker. One of the upgrades is the adoption of the more moderns and advanced Global B electrical architecture. Additionally, the new XT5 is larger in just about every dimension. Coupled with its new exterior and interior, the XT5 is just that much better-looking than its predecessor.
In fact, taking a look at the second-gen XT5’s cabin instantly reminds of of the Cadillac Lyriq. Its cockpit is dominated by a curved 33-inch infotainment screen lifted right from the Lyriq, while its center console and seats share a similar (if not identical) aesthetic. The redesign helps create congruity across the luxury marque’s lineup.
Unfortunately, there’s just no viable way to introduce the overhauled XT5 to the North American market, at least not within Cadillac’s current business plan. This is primarily due to two factors: the growing focus on electric vehicles and limited manufacturing capacity. For global markets except for China, the XT5 is currently built at the Cadillac Spring Hill plant in Tennessee, sharing the facility with the Cadillac XT6, Lyriq, and the XT6’s forthcoming electric replacement, the Cadillac Vistiq.
But priorities at the Spring Hill plant are shifting, and in the future, it will exclusively build all-electric vehicles, leaving no room for assembly of internal combustion engined (ICE) models. Here’s how it will play out: production of the current XT5 will come to an end after the 2025 model year, and a similar fate is likely awaiting the XT6 shortly thereafter. This will enable the plant to build more of the Lyriq, in both left- and right-hand drive variants, and of the Acura ZDX, which shares the Lyriq’s platform. From there, the plant will begin to build the Vistiq, which will replace the XT6. Once the Lyriq, Vistiq and ZDX are being produced at scale, Spring Hill just won’t have the capacity to build another ICE model.
In short, while there is certainly demand for the second-gen Cadillac XT5 in North America, but the way in which the luxury marque planned its product portfolio for this market leaves no capacity to build it stateside. The first-gen XT5 will continue to be sold in the U.S. for at least the 2025 model year, but we don’t expect it to last too much longer after that.
Steven Ciccariello
This strategy will alienate so many current Cadillac owners. My wife and I own a 2022 Premium Luxury XT5, which we love. I will be in the market for a new vehicle in June 2025. If the updated XT5 was available, that’s what I would have purchased. No way I’m purchasing a 2025 XT5 that is NO DIFFERENT than our 2022. I looked at the Lyric which is a beautiful vehicle, but I have no desire to purchase an electric vehicle so Cadillac will be off my radar for a new car. When our XT5 lease is done, Cadillac will also not be an option. In my opinion, this is a stupid move for Cadillac when BMW, Mercedes, Audi, Genesis, Volvo, etc…. will all continue to offer both ICE and electric vehicles. Talk about a company totally abandoning its customer base.
PeteinSC
Could not agree with you MORE!! We faced the same problem when looking to move up from a GMC Terrain Denali. XT5 size is right, but it is SO OLD as to be irrelevant. We opted for a Range Rover Velar…beautiful vehicle, but a bit “quirky”. Would have preferred Cadillac, but NOT electric. So, our next trade will be for something other than Cadillac. Building the cars that few people want is a “death sentence” for the brand.
Roger Sears
Isn’t the Velar considerably more expensive than the XT-5?
PeteinSC
It is more expensive, but it also looks like it. The current XT5 looks more like it should be in the Chevy line up based on today’s competitor designs
Roger Sears
I agree, but I come at this issue from a different place. I want to purchase an XT-5, but I don’t have a current Cadillac vehicle. For me, the Lyriq IS NOT a viable replacement for the current XT-5. Hasn’t GM figured out yet that American demand for EVs is low; just build the new XT-5 by removing some Lyriq production.
PeteinSC
Agree!
Samuel Anastasia
I feel the same. I had leased a 2020 XT5 , when lease was up I wanted a new Cadillac ( not electric). I loved the new GT4, but found it was not coming to the USA. Now I find that the new XT5 is not coming . I feel Cadillac does not think to much of its loyal customer . I own Cadillac for the last 35 years, I guest I will have to look else were.
PaPa
“No way I’m purchasing a 2025 XT5 that is NO DIFFERENT than our 2022.” The 2025 is different than your 2022…it has fewer options available and cannot be built to be as satisfying as that 2022.
Shirley
I want a second generation XT5.i will not buy an EV. Love Cadillac but will be forced to buy elsewhere.
Frankrizzo
The decision to push the Lyriq down the throats of the present Cadillac drivers will backfire big time and bring GM as we know it ,to it’s knees.
Hugh+C+Jones
Steven, I echo your remarks re no Gen II XT5. My wife and I currently drive a 2017 and a 2023 XT5. We love them. I want to replace my 2017 with a new Gen II XT5 but can’t. Don’t want to but am looking at the new X5 BMW and GV70 Genesis. Hope someone in Cadillac Planning winds up paying for this fiasco.
Ron
My 2021 CT5 and XT 5 are probably my FINAL Cadillacs. I had to SETTLE for a CT5 when the CT6 was discontinued. Now it’s on to a DIFFERENT company for my next cars unless Government Motors grows the balls to stop the “kill the ICE” movement!
PeteinSC
Agree! The Escalade is still my favorite, and I’ll look at the 2025…but it’s too big to own two of them so if I finally get to the point where I don’t want/need the size, I’ll be looking elsewhere, too. Mercedes builds some nice vehicles and the Genesis brand is intriguing. Too bad GM is more interested in politics than building vehicles that people want!
Frank la Vacca
This is what happens when the manufacturer is out of touch with its customers.Also GM has fallen in with the current administration for all electric vehicles which the American people don’t want and GM needs to get rid of the ceo Mary and put someone more interested in the future car buyers then this loony government administration.We need change at the top of both.The xt5 is a great vehicle and they will be sorry when they loose that base of customers 🥵
Steve
I purchased a 23 XT4 looking to trade up to an XT5 when the new model arrived in 25 or 26. No way am I interested in an EV.
Jess
Cadillac has made a HUGE mistake by deciding not to sell the second generation XT5 in North America. The current XT5 is simply not compelling nor competitive in its segment (and really hasn’t been for a number of years). My wife had a 2017 and a 2021; there was absolutely no reason to lease a third. I’m a Cadillac guy through and through, but I made the leap and leased a 2024 Lincoln Nautilus, which is nothing short of stunning. I am of the opinion that Cadillac will not sell the Lyric in sufficient numbers to truly replace the XT5, and that many XT5 customers will move on to competing brands.
PeteinSC
Agree!