General Motors Co. is ending production of the gas-powered Cadillac XT4 small SUV in January 2025, the automaker confirmed Thursday.

The XT4 is built at GM's Fairfax Assembly plant in Kansas, where production of the Chevrolet Malibu sedan is ending this month. GM is still investing $391 million in Fairfax to make a new version of the Chevrolet Bolt starting in late 2025.

"General Motors is confident in our strong ICE and EV portfolio and will lean into growth opportunities guided by customer demand," GM spokesperson Kevin Kelly said in a statement. "There is no change to our previously announced $391 million investment and staffing plans at Fairfax Assembly. This facility will continue to play a critical role in GM’s future with the new Chevrolet Bolt EV. "

GM plans to bring a shift back to Fairfax in October 2025 ahead of the start of Bolt production, according to a plant memo sent to employees that was obtained by The Detroit News. The automaker is anticipating a return of the second production shift in the first quarter of 2026, according to that memo.

GM will be temporarily laying off 686 United Auto Workers-represented employees when Malibu production ends and about 759 more in January when the XT4 ends, according to the memo.

GM originally planned to end XT4 production in January and then resume it in mid-2025 but pulled back on those plans. Cadillac has three more EVs coming: the Escalade IQ, the Optiq SUV and the Vistiq three-row SUV. It already has Cadillac Lyriq SUV and the hand-built Celestiq, an ultra-luxury car.

"Cadillac will offer our most comprehensive portfolio ever in 2025 with twelve models and a mix of ICE and EVs," Kelly said. "The current lineup meets the need of almost every luxury customer with an offering in most major segments. In just over a year, Cadillac has introduced six new products which will help us maintain our momentum."

Cadillac started production of the XT4 in fall 2018 for model year 2019. Through the third quarter of this year, GM has sold 15,688 of the entry-level SUV, down 12% year over year. In 2023, GM sold 22,707 XT4s, an increase of 4% from 2022.

"While the XT4 isn't Cadillac's strongest or most profitable product, it serves a vital role and contributes meaningful volumes," Paul Waatti, director of industry analysis at market research firm AutoPacific Inc., said in a statement to The Detroit News.

Waatti added that the decision aligns with Cadillac's shift to EVs and gives the Optiq, the brand's coming smaller electric SUV, an opportunity "to redefine this key entry SUV role. The Optiq looks promising and will better communicate Cadillac's image to the younger, tech-savvy demographic the brand needs to welcome and retain in its universe as it transitions. Cadillac may lose some traditionalists and market share in the short term, but strategically, this decision plays well with the brand's overall trajectory."

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