Excerpts from a story in Automotive News: End of XT4 leaves entry-level slot in Cadillac lineup
Cadillac’s plan to discontinue the XT4 compact crossover leaves an opening at the lower end of the brand’s internal combustion lineup. That slot soon could be filled by the Optiq small electric crossover, which is shipping to dealerships this month. Cadillac said close to half of XT4 owners are open to an electric vehicle as their next car. It hopes to persuade the rest to move up to the midsize XT5, which it says is often second on their consideration list.
The XT4 is the freshest of Cadillac’s three gasoline-powered crossovers. It got exterior updates and a 33-inch touchscreen inspired by the Lyriq EV in a midcycle update last year. By comparison, the XT5 and three-row XT6 are largely unchanged since 2019, when the XT5 last was freshened and the XT6 debuted. “Plenty of products have been wound down that were poor sellers, poor performers in the marketplace, poor product packages. This is not one of them...
“Cadillac will offer our most comprehensive portfolio ever in 2025 with 12 models and a mix of ICE and EVs,” a brand spokesperson said in a statement. “The current lineup meets the need of almost every luxury customer with an offering in most major segments.”
Cadillac plans to have three EVs covering its main crossover segments, with the Optiq launching this quarter and the three-row Vistiq arriving in early 2025, joining the midsize Lyriq already on sale. It’s possible that replacing the XT4 with a fully electric model will deter some customers who aren’t ready for an EV...
The 2025 Optiq starts at $54,390 with shipping, before a federal $7,500 tax credit on new EV purchases. The credit would bring the Optiq within $5,000 of the 2025 XT4, which starts at $41,990 with shipping. “The buyer shouldn’t see much of a difference in price,” Fiorani said. “The only issue will be: Are buyers willing to take the risk into the unknown of an electric vehicle when they’ve been so comfortable with the gas-powered XT4 or 5 before that?” That could depend in part on what happens with the federal EV tax credits. President-elect Donald Trump’s transition team has signaled interest in ending the purchase credit, which could raise EV transaction prices unless automakers increase incentives or absorb higher costs....
XT4 filled ‘niche’ U.S. sales of the XT4 are down 12 percent this year to 15,688 through September. GM sold 17,844 XT5s in the U.S. through the first nine months, also down 12 percent, while Lyriq sales surged to more than 20,000 after initial production constraints eased. “XT4 was a medium seller, and I think that they’re a little encouraged by how well the Lyriq has done lately,” said Stephanie Brinley, associate director of AutoIntelligence for S&P Global Mobility. “If the Optiq can do what the Lyriq’s been doing,” Brinley said, “then it’s in better shape. You don’t really need both” the Optiq and XT4. Scott Kunes, COO of Kunes Automotive Group in Wisconsin, said the XT4 wasn’t his highest-volume Cadillac nameplate but filled a niche for the brand at the entry level as a solid competitor against BMW and Mercedes-Benz and as a step up for consumers coming from similar vehicles at Chevrolet and GMC. The XT4 also attracted older customers moving to a smaller vehicle segment as their family needs changed, said Kunes, whose group has a Cadillac store about 50 miles southwest of Milwaukee. The decision to kill it surprised him given the success Buick is having with its entry-level Envista, he said, and amid the uncertainty surrounding federal EV policy under Trump.
“The waters are still murky, and we need to make sure that we have the ability to take care of our customers no matter what they’re looking for,” Kunes said. The impact on retailers ultimately may be regional and depend on local EV adoption rates, said Howard Drake, who owns Casa de Cadillac in Los Angeles. Cadillac’s plan to phase out gasoline vehicles has been well-publicized, he said, though he didn’t think the XT4 would go first. Drake’s dealership has had success selling the Lyriq, though, so he’s optimistic the Optiq can take the XT4’s place in his market.
