Cadillac was the GM brand moving away from combustion engines the fastest, but now that could be changing. GM has just announced a $275 million investment into its Spring Hill Assembly plant in Tennessee, and $150 million of that has been earmarked for a “future Cadillac internal combustion product.” The company has made it clear that it won’t be just a new-generation XT5 crossover, either. The plant will gain one additional model by the time the money has been spent. But what could that model be?
New Gas-Fired Cadillac Is Coming To Spring Hill
Cadillac Lyriq on Assembly Line at GM Spring Hill ManufacturingGeneral Motors
GM has said that it is spending $9 billion on its US manufacturing footprint this year, along with $7 billion on R&D in the US. Some of that is going to the Spring Hill plant, which has had a very interesting role in the General Motors family since it opened in 1986.
Cadillac had been shifting to electric at a rapid pace. Its first was the Lyriq, but it quickly launched the Optiq to replace the gasoline XT4, the Vistiq to replace the XT6, and the Escalade IQ, which is sold alongside the gas and diesel Escalades. It also has the ultra-low-volume Celestiq, which is the first Cadillac that has looked to challenge Rolls-Royce in generations.
The brand was set to be fully electric by 2030, though that plan was rolled back in early 2024. In May that year, one of Cadillac’s top executives said that the gas models would live on, though it wasn’t clear exactly for how long. He called it “that luxury of choice.”
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And the CT4 and CT5 replacements could be coming too.
If it wants to keep selling gas vehicles, it will need to update the ones it has left, and Cadillac has said it plans to introduce a new or refreshed XT5 in 2027. A next-generation CT5 is also confirmed, but that car is already slated for assembly in Michigan, so it won’t fill the space in Tennessee. And this latest announcement shows that Cadillac will expand its gas offerings, not just renew them.
New Model Could Mark Return Of XT6
2025 Cadillac XT6 from the front three-quarter angle in red while drivingCadillac
A recent report from GM Authority suggests that the new model could be a reborn XT6. Cadillac’s three-row crossover was retired at the end of 2025 and meant to be replaced by the Vistiq. While a smaller XT4 replacement is also possible, the two sold in nearly equal volumes. For Cadillac, bringing back the more expensive (and so likely more profitable) model would probably be the wiser choice.
Along with the new Cadillac, GM is spending $125 million to extend the life of its 2.7-liter turbo-four engine program. The site will continue to build that engine, known as Turbomax, for GM’s pickup trucks. GM also builds a 2.5-liter version of this engine, found in the GMC Acadia and Chevrolet Traverse. That engine would most likely power a new XT6 as well, but it was not mentioned as part of the program.
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Cadillac is going heavily electric, but not all electric.
GM’s Spring Hill plant built its first car in 1990 as the sole-source for the brand-new Saturn brand. It was the only Saturn plant until it became part of the greater GM family in 2004. It was saved from the 2008 closure of Saturn when GM announced it would build the Chevrolet Traverse there. It is currently home to the Cadillac Lyriq, Vistiq, and XT5, and soon the gas-powered Chevrolet Blazer. The new Cadillac would bring the plant to five models.
CarBuzz Insight – Why This Matters:
2026 Cadillac CTS-V detail shot of the 3.0L twin-turbo V6 engineCadillac
After canceling plans to go all-EV by 2030 and dropping most of its gas vehicles, this is a massive change. Cadillac isn’t just refreshing an existing product; it is launching something new. That’s a sign it is committing to internal combustion for at least five more years after that model launches.
