Cadillac Adds a Hybrid to the XT5.

Cadillac previously announced it would extend production of the current Cadillac XT5 in the U.S., while preparing a new generation for 2027 as a 2028 model. We’re still not sure if that means the Chinese market XT5 is coming over here or not. But that newer model is adding a brand new PHEV version.

The new PHEV model is using a 1.5 Liter engine with 2 electric motors. Which is similar to what GM has been using in other Chinese models. A set up that I guess would be welcome in North America as well.

The Cadillac XT5 has already been redesigned for the Chinese market, where the new generation has been on sale since August 2024. If that same model arrives in the U.S. by mid-2027, Americans would essentially get a three-year-old vehicle marketed as an all-new generation. The latest XT5 is around three inches longer than the current model and is powered by a 2.0-liter turbocharged engine. Just like countless other crossovers around the world these days.

The outgoing XT5 is still selling in surprisingly decent numbers in the U.S. despite being over a decade old. It never really looked modern, even when it was new, and its interior always felt below what Cadillac standards should be. Especially compared to German rivals and newer luxury SUVs. Yet Cadillac still sold over 26,000 XT5s in 2024, which was actually an improvement over 2023. Sales were much stronger when the model debuted. Reaching nearly 68,000 units in 2017, but demand has clearly stabilized instead of collapsing.

Meanwhile, the newer and far more impressive Cadillac Lyriq has already become more popular, with over 28,000 units sold last year. The smaller and less expensive Cadillac Optiq will probably do even better.

GM likely concluded that with annual sales still above 20,000 units, there is enough demand to justify keeping the XT5 alive. Since the Chinese-market version already exists, development costs for the U.S. market should remain fairly limited. By 2027, that model will probably already be due for a mid-cycle refresh anyway. Which makes the timing feel even stranger.

So far, Cadillac’s official statement reads: “In response to strong demand for the nameplate, we made the decision to keep XT5 as part of our portfolio, which is stronger than ever with a mix of new EV and recently refreshed gas-powered vehicles like Escalade. We look forward to launching the next-gen XT5 in the second half of 2027.”

I still think the “new” Chinese-generation XT5 is a very bland design. It uses the same styling language Cadillac has relied on for years and somehow doesn’t look significantly more modern than the current model.