DETROIT, MI—General Motors (GM) announced last week that it will cease production of the gas-powered Cadillac XT4 SUV in January, as it transitions its Kansas plant to focus on electric vehicles (EVs). The company is investing $390 million in its Fairfax, Kansas, assembly plant to produce next-generation Chevrolet Bolt EVs, and will also end production of the Chevrolet Malibu this month.

Initially, GM planned to produce both the XT4 and the Bolt EV on the same assembly line starting in 2025. However, the automaker now says the Kansas plant will exclusively produce Bolt vehicles. Production of the previous-generation Bolt was halted in December 2023.

Sales of the Cadillac XT4 have dropped 12%, with just 17,807 units sold this year. Additionally, GM revealed plans to lay off 1,695 workers at the Fairfax plant. The first round of layoffs, affecting 686 full-time employees and 250 temporary workers, will begin on November 18. A second round, scheduled for January 12, will see 759 full-time workers let go. However, GM intends to recall these workers when Bolt production resumes in late 2025.

The Chevrolet Malibu, which has sold more than 10 million units globally since 1964, is being phased out as GM continues its shift away from sedans to focus on crossovers and SUVs. The Malibu is now the last remaining Chevrolet sedan in the U.S. lineup, alongside the Corvette. GM also discontinued the Chevrolet Camaro in late 2023.