Electric Cars

Cadillac's CT4 sedan is set to exit the market after the 2026 model year, reflecting a broader trend of declining sedan sales in the United States. Despite this, there's positive news for enthusiasts of internal combustion engines: the larger Cadillac CT5 will continue with a redesigned next-generation model, preserving its gasoline-powered heritage. This strategic decision by Cadillac aims to adapt its product lineup to meet changing consumer preferences while maintaining a presence in the sedan segment, particularly with its more popular CT5 model.

Cadillac Confirms CT4 Discontinuation and Next-Generation CT5 with Combustion Engine

In a significant announcement for the luxury automotive market, Cadillac has officially confirmed the cessation of production for its CT4 and current-generation CT5 sedans following the 2026 model year. Specifically, the CT4 will conclude its run in June 2026, while the present CT5 model will be produced until the end of that year. This decision underscores the continuing shift away from traditional sedans in the North American market, a trend that has previously led to the discontinuation of other Cadillac sedan models like the CTS and CT6.

However, the news is not entirely about departures. Cadillac Vice President John Roth, in a communication published by CadillacVClub.com, revealed plans for a next-generation CT5. Crucially, this upcoming model will retain an internal combustion engine, a move that is likely to be welcomed by a segment of the brand's loyal customer base who prefer traditional powertrains. The company stated, \"[We] will continue with a next-generation internal combustion engine vehicle,\" reaffirming its commitment to offering diverse choices to consumers.

The future CT5 sedan will be available in both the United States and Canada, with production slated to take place at General Motors’ Lansing Grand River Assembly plant in Michigan. This facility is currently responsible for manufacturing both the CT4 and CT5 and previously built the Chevrolet Camaro, which shared a platform with Cadillac's sedans. While an exact launch date for the new CT5 has not been specified beyond \"a future model year,\" it is anticipated within the next few years, possibly as early as 2027.

Cadillac's focus on the CT5 appears to be strategically sound, as the model has significantly outsold the CT4. Sales figures for the first nine months of the year showed the CT5 outperforming the CT4 by a three-to-one margin, with CT5 sales increasing by 10.7 percent, while CT4 sales experienced a 17 percent decline. The company's statements, however, did not explicitly mention plans for high-performance variants such as the CT5-V or Blackwing models. Nevertheless, the continuation of a combustion engine platform sparks hope that Cadillac might still offer powerful V-8 options in these future performance iterations.

This strategic adaptation reflects Cadillac's commitment to flexibility in a volatile automotive landscape, aiming to meet evolving customer demands effectively.

The announcement from Cadillac highlights the dynamic shifts occurring within the automotive industry, particularly the declining market for traditional sedans versus the enduring demand for certain models. The decision to retire the CT4 but invest in a next-generation, gasoline-powered CT5 demonstrates a pragmatic approach to market realities. It suggests that while the overall trend might lean towards SUVs and electric vehicles, there remains a dedicated segment of consumers who value the performance and driving experience offered by gasoline-powered luxury sedans. This strategic pivot allows Cadillac to consolidate its resources on its stronger sedan offering, the CT5, potentially catering to a core demographic that appreciates both luxury and conventional powertrain technology. This adaptation could be a blueprint for other manufacturers navigating the transition period between conventional and electrified vehicle lineups.

Toyota is redefining its luxury automotive landscape by strategically positioning Century as its new premier brand, transcending the established stature of Lexus. This bold initiative, championed by Chairman Akio Toyoda, aims to carve out an exclusive niche for Century in the ultra-luxury market, drawing parallels to the elevated status of brands like Rolls-Royce within their respective automotive groups. The brand will concentrate on crafting exceptionally rare and high-value vehicles, with an opulent coupe slated to introduce this new direction. Concurrently, Lexus is undergoing its own evolution, pivoting towards a philosophy of 'Luxury Space' with groundbreaking designs, exemplified by a six-wheeled electric minivan concept that signals an adventurous reinterpretation of luxury mobility.

This significant reorganization highlights Toyota's ambition to cater to diverse segments of the luxury market with distinct brand identities. Century, with its rich heritage and renewed focus on exclusivity, is set to offer unparalleled craftsmanship and bespoke experiences to a discerning clientele. The brand's independence from the main Toyota marque underscores its premium positioning, promising a future of automotive excellence at the very pinnacle of luxury. Simultaneously, Lexus is being empowered to innovate and explore novel concepts, moving beyond traditional luxury sedan designs to embrace a future where comfort, quietness, and versatile spatial arrangements define its offerings. This dual strategy demonstrates Toyota's adaptive approach to an evolving global luxury landscape.

Century's Ascent to Ultra-Luxury Status

Toyota has announced a significant shift in its brand strategy, elevating Century to a distinct flagship luxury brand that will sit above Lexus. This decision, spearheaded by Chairman Akio Toyoda, aims to establish Century in a league of its own, focusing on ultra-exclusive, high-priced models. The move is intended to create a unique luxury experience, moving Century away from being perceived merely as part of the broader Toyota lineup. This repositioning is expected to be marked by the introduction of a new stately coupe, signaling Century's ambition to compete at the very top echelons of the global luxury automotive market, emphasizing bespoke craftsmanship and unparalleled exclusivity.

The Century nameplate, which dates back to 1967, has a storied history, including being the only Toyota model to feature a V-12 engine. Traditionally exclusive to Japan, the brand recently expanded its global aspirations with the introduction of an SUV model in 2023, targeting markets like China. Toyota's Chief Branding Officer, Simon Humphreys, articulated the vision for Century to operate independently, aiming to become 'the top of the top, one of one,' offering vehicles that are unique in the world. This strategic direction positions Century to rival high-end luxury marques by focusing on extremely limited production and highly personalized automobiles, setting it apart from even the most luxurious Lexus models.

Lexus's Transformative Vision for Luxury Space

Alongside Century's elevation, Lexus is also embarking on a significant transformation of its own brand identity and product philosophy. The premium marque, which has been Toyota's luxury arm since 1989, is shifting its focus from 'Luxury Sedan' to 'Luxury Space,' as articulated by Akio Toyoda. This change in ethos is already being previewed by innovative concepts, such as an electric, six-wheeled, three-row minivan. This radical design suggests Lexus is prepared to move beyond conventional luxury vehicle segments, exploring new forms that prioritize interior comfort, spaciousness, and novel passenger experiences. The brand's leadership expresses confidence in these unconventional models reaching production, despite the inherent design and engineering challenges.

Lexus's newfound freedom to innovate, as highlighted by Simon Humphreys, means the brand will be encouraged to explore unique ideas without direct emulation of competitors. The development of vehicles like the three-axle LS minivan is contingent on meeting Lexus's stringent standards for 'quietness, comfort, and the ability to drive on any road,' ensuring that innovation does not compromise the core luxury experience. This strategic pivot also signals the discontinuation of the traditional LS sedan, which historically defined the brand, with its final "Heritage Edition" slated for 2026. This bold reorientation signifies Lexus's commitment to pioneering new definitions of luxury, focusing on advanced electrification and spatial design to create distinctive and forward-thinking vehicles for the future.