General Motors (GM) is making a significant move in its production strategy, signaling a strong commitment to electric vehicles. The company will end production of its gas-powered Cadillac XT4 SUV at its Fairfax Assembly plant in Kansas in January 2025, transitioning the facility to manufacture the next generation of Chevrolet Bolt EVs. This shift follows a similar move in May, where GM announced the discontinuation of Chevrolet Malibu production at the same plant by November 2024.
The Fairfax plant, currently producing both the Cadillac XT4 and Chevrolet Malibu, will undergo a retooling process after the XT4’s production ceases. This retooling, expected to be completed by late 2025, will prepare the plant for the production of the next generation Chevrolet Bolt EVs. GM’s decision to halt production of the previous generation Bolt EVs in December 2023 paved the way for this transition. To facilitate the change, GM will invest approximately $390 million in the retooling process, a move announced in September.
The decision to discontinue the XT4 and Malibu production comes amidst declining sales for both models. In the nine months leading up to September, Cadillac XT4 sales in the U.S. dropped by 12%, while Malibu sales saw a steeper decline of 16%. This downward trend reflects a broader shift in consumer demand towards electric vehicles and away from traditional gasoline-powered vehicles.
GM’s commitment to electric vehicles is evident in its recent performance. In the third quarter of 2024, the company became the second largest seller of EVs in the U.S., trailing only Tesla. GM sold over 32,000 EVs during this period, with the Chevrolet Equinox EV contributing significantly to the sales figures. Notably, GM boasts the most extensive EV lineup among major players in the U.S., including Tesla, with eight EV models currently available for purchase. However, despite its growing EV presence, GM’s EV sales still lag behind Tesla’s. Tesla sold 166,923 units in the U.S. during the same quarter, marking a 6.6% increase compared to the same period in 2023.
GM’s strategic shift towards electric vehicles demonstrates its ambition to compete in the rapidly evolving automotive landscape. By investing in retooling its facilities and expanding its EV lineup, the company aims to capture a larger share of the growing EV market and challenge Tesla’s dominance. The move highlights the increasing importance of electric vehicles in the future of mobility and the industry’s transition towards a sustainable future.
