It is welcome news for enthusiasts that Cadillac will continue producing the CT5 for another generation. After all, the model’s high-performance version, the CT5-V Blackwing, is currently the only sedan on the market with both a V8 and a manual transmission. However, keeping the nameplate alive will require extensive retooling at General Motors’ Lansing facility, resulting in hundreds of temporary layoffs.
According to Automotive News, GM plans to temporarily lay off 350 employees ahead of its $1.25 billion retooling program for the next-gen Cadillac CT5. Based on a WARN (Worker Adjustment and Retraining Notification) notice, the cuts at the Lansing Grand River Assembly and Lansing Regional Stamping plants will take effect on January 14, 2027.
Pumping The Brakes
For context, GM committed $1.25 billion in 2023 to prepare the Lansing plant for future EV production. A year later, the U.S. Department of Energy awarded the automaker a separate $500 million grant to help electrify Lansing Grand River. At the time, EV demand was rising rapidly, so the investment made sense. However, demand later cooled, while federal policy changes beginning in 2025 further weakened the market outlook. The planned EV conversion appeared to place the CT5’s future in doubt until Cadillac confirmed that the nameplate would continue with another combustion-powered generation.
Because of this broader market shift, automakers are again leaning harder into combustion-powered products.
Stellantis, for example, is introducing the Ram 1500 Rumble Bee lineup, topped by an SRT model with a 777-horsepower, 6.2-liter supercharged Hemi V8. That may be encouraging for buyers who weren’t ready to make the switch to EVs, but at GM’s Lansing facility, the retooling will require a temporary shutdown and layoffs.
GM says it will still provide assistance to the affected employees. Under the national GM-UAW contract, workers may be eligible to transfer to other GM facilities or receive supplemental unemployment benefits worth 74% of their hourly pay. They are expected to be recalled after the retooling is completed, with some potentially returning by late 2027.
Preparing for the Next Chapter
The Michigan-based automaker has not announced when the next-gen Cadillac CT5 will arrive, although reports suggest production at Lansing Grand River could begin around 2028. For reference, Cadillac’s entry-level EV, the Optiq, is produced in Mexico, while the Lyriq and Vistiq are built at Spring Hill Manufacturing in Tennessee. The all-electric Escalade IQ rolls off the line at the EV-dedicated Factory ZERO plant in Detroit.
In addition, the Chevrolet Camaro – whose sixth generation ended after the 2024 model year amid the rapid rise of EVs – is reportedly returning on an updated version of GM’s Alpha 2 platform, which will also underpin the upcoming CT5.