The Cadillac XT5 is a compact luxury SUV that’s due for an update in a few short years. Thanks to market dynamics, GM China will lead the design of the new model, with the XT5 set to be discontinued in the US after the 2024 model year.

As reported by GM Authority, the decision comes as the XT5 has failed to really connect with US buyers. It’s sold well enough to continue to the end of the 2024 model year, but Cadillac no longer sees a place for the model in its US lineup beyond that date. As a guide, the luxury automaker shifted 28,380 units in the US in 2021, while selling 52,977 units in China in the same year.

It only makes sense that GM would focus the design of the new XT5 on the market where the vehicle is most successful. Given the US won’t get the next-gen model, GM China will be free to handle the development and design of the crossover, shaping it to Chinese tastes first and foremost.

It bears noting that Cadillac isn’t following this trend with all of its models. The smaller Cadillac XT4 and the larger XT6 are both global models, developed to sell in markets around the world. In the US, the Cadillac Lyriq is perhaps seen as an indirect successor to the market role formerly played by the XT5.

Few details are available regarding the new XT5, but GM Authority has shared spy pictures of a test mule spotted in the wild. The limited vision available shows us it will feature new lighting designs, including vertically-stacked headlights up front. Styling looks to be an evolution of the existing model, though heavy camouflage prevents us from drawing clear conclusions at this stage.

Where size is concerned, the XT5 appears to be staying firmly in the compact luxury crossover space. It will ride on the C1-2 platform, an evolution of the C1 platform that underpins the current XT5, as well as the Chevrolet Blazer and Buick Enclave.

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Twenty years ago, the Chinese automotive market barely raised an eyebrow overseas. Now, the country is the biggest auto market in the world, and that gives it the power to shape vehicles in its image. Now, we’re seeing the premier American luxury automaker designing its cars to best suit the roads and tastes of China. How times change.

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The post The New Cadillac XT5 Will Be Designed Just For China appeared first on The Drive.

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