General Motors GM will end production of its gas-powered Cadillac XT4 SUV at its Fairfax Assembly plant in Kansas in January 2025.

What Happened: The Fairfax plant currently manufactures the Cadillac XT4 and the Chevrolet Malibu. In May, GM said that the production of the Chevrolet Malibu would end in November, Reuters reported on Thursday

Following the halt in production in January, the plant will be retooled and production will resume in late 2025 with the next generation of Chevrolet Bolt EVs. The company halted production of the previous generation of Bolt EVs in December 2023.

GM will invest about $390 million in the retooling process, the company said in September.

Deliveries of the XT4 and the Malibu have been dropping since the start of 2024. While Cadillac XT4 sales in the U.S. dropped 12% in the nine months through the end of September, Malibu sales dropped 16%.

The company did not immediately respond to Benzinga’s request for comment.

Why It Matters: In the third quarter, GM became the second best-seller of EVs in the U.S. after Tesla as the company sold over 32,000 EVs, with the Chevrolet Equinox EV accounting for most of the deliveries.

GM had the longest EV lineup in the U.S. among major players including Tesla in the quarter with eight EV models on sale.

GM’s EV sales, however, continue to trail behind Tesla’s. Tesla sold 166,923 units in the U.S. in the three months, or 6.6% more than Q3 2023.

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