Cadillac has confirmed that it will be discontinuing its smallest and most affordable SUV, the XT4, with production set to end in January 2025 at GM's Fairfax plant in Kansas. For current and future Cadillac customers, this means the option to either upgrade to the larger and pricier XT5 or consider models from other brands.
Despite a substantial refresh for the 2024 model year—featuring sleeker styling and an upgraded, tech-forward interior with a curved infotainment display and Google integration—sales for the XT4 have dropped by 12% this year. This decline suggests that demand for the XT4 has been waning, which likely played a part in Cadillac’s difficult decision to phase out the model.
The Fairfax plant, originally intended to produce both the XT4 and the upcoming Chevrolet Bolt EV, will now exclusively focus on the Bolt EV. This shift will result in the loss of nearly 1,700 jobs at the facility as it transitions into a dedicated electric vehicle production site. Although GM has stated plans to rehire many of these workers once Bolt EV production begins in late 2025, the gap between job cuts and rehires will be a challenging period for many employees.
In an effort to soften the blow of the base model’s discontinuation, Cadillac has adjusted prices across the remaining XT4 trims. However, with the removal of the base model, the entry-level price has increased. To offer greater value, Cadillac has made the previously optional Active Safety Package—which includes features like adaptive cruise control, lane-keeping assistance, and a surround-view camera—standard on all XT4 models, enhancing safety and convenience.
Launched in 2018, the XT4 was Cadillac's answer for buyers seeking an entry-level luxury crossover. Despite recent enhancements, the XT4 has faced stiff competition in a crowded market segment. While sales have dropped this year, the XT4 has nonetheless remained a popular model in Cadillac’s lineup, showing appeal to a dedicated subset of Cadillac buyers.
As Cadillac phases out the XT4, it will now shift its focus toward its larger SUV offerings and, more prominently, its growing lineup of electric vehicles. This decision marks a broader shift in Cadillac’s strategy, aiming to strengthen its presence in the luxury EV market and cater to a changing automotive landscape.