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Here’s Why The Next-Gen Cadillac XT5 Isn’t Coming To The U.S. (Video)

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.

Second-Gen Cadillac XT5 Photos

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Alexandra Purcell

Alexandra is a Colorado-based journalist with a passion for all things involving horsepower, be it automotive or equestrian.

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