General Motors (GM) plans to end production of the gas-powered Cadillac XT4 SUV in January 2025 as it shifts its focus to electric vehicles (EVs).

The decision comes as the Detroit automaker invests $390m at its Fairfax, Kansas, assembly plant to build next-generation Chevrolet Bolt EVs, reported Reuters.

This move aligns with GM's strategy to enhance its EV offerings amid a changing automotive landscape.

In addition to the Cadillac XT4, GM plans to cease production of the Chevrolet Malibu this month.

In May, the company had announced plans to produce both the Bolt EV and XT4 on the same assembly line when production resumes in Kansas in 2025. However, GM has now opted to concentrate solely on manufacturing Bolt vehicles.

Sales of the XT4 have declined by 12% , with a total of 17,807 units sold this year.

In September, GM announced that it would lay off 1,695 workers at its Fairfax plant.

The first round of layoffs will begin on 18 November, affecting 686 full-time workers and terminating 250 temporary employees.

The second phase, set to start on 12 January 2025, that will see an additional 759 full-time workers laid off.

Despite these layoffs, GM has indicated plans to recall the affected full-time workers once the plant resumes production of the Bolt in late 2025.

Over recent years, GM has been transitioning away from traditional cars in favour of producing more crossover and sport utility vehicles.

The Malibu is now the last remaining Chevrolet car offered in the US, aside from the Corvette, following the discontinuation of the Chevrolet Camaro late last year.

In October 2024, the company noted that its EV portfolio is gaining market share from competitors and attracting numerous new customers.

It also claims to be ‘making rapid progress toward EV profitability’.

GM stated that it is on track to produce and wholesale approximately 200,000 GM-branded EVs this year.