Here’s Why The 2025 Cadillac Escalade Is Dropping The Duramax Diesel Engine
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General Motors revealed the refreshed 2025 Cadillac Escalade in July, pulling the sheets on new exterior styling, an overhauled cabin with a 55-inch infotainment screen, and new convenience features. The powertrain lineup was revised as well, with the optional diesel engine dropped from the lineup. GM Authority was the first to report on the impending discontinuation of the Escalade’s diesel engine option, pointing to low demand. Now, GM Authority has some specifics on just how low demand for the Escalade diesel actually was.
In a recent interview with GM Authority Executive Editor Alex Luft, Cadillac Escalade marketing manager Donnelly Baxter disclosed the take rate for diesel-powered Escalade models.
“The decision to drop the diesel was really driven by customer demand,” Baxter told GM Authority. “The 2024 model is the only vehicle currently left in the full-size luxury SUV segment with a diesel engine, and we only had a five percent take rate on it.”
Baxter went on to state that the low take rate for the diesel-powered Escalade indicates that customers are “really looking for an ICE vehicle that they are used to, or they want to make the shift to electrification.” Baxter also said that Cadillac provides customers with “the luxury of choice” when it comes to the luxury SUV segment, offering the redesigned 2025 model year for ICE customers and the Escalade IQ for EV customers.
With the departure of the 3.0L I6 LM2 turbodiesel Duramax from the ICE-based Escalade engine lineup, non-V-Series variants rely solely on the naturally aspirated 6.2L V8 L87 gasoline engine, while the Escalade-V cradles the supercharged 6.2L V8 LT4 gasoline engine. All Escalade variants ride on the GM T1 platform, while production takes place at the GM Arlington plant in Texas. Production of the 2025 Cadillac Escalade is scheduled to kick off in October.
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I’m a HUGE diesel person and I wouldn’t buy anything with the 3.0L I6 LM2 in it either. I WOULD buy an Escalade TOMORROW if it had the 6.6L Duramax in it. The reason for the low take rate is as simple as that. The 6.6L would be overkill in the Escalade for most people but so is the LT4. You’re spending that kinda money as a flex and because it’s fun. Nobody’s buying an Escalade for the fuel economy. The death of the diesel escalade is another case of GM telling the customer what they want rather than giving them what they want.
With just a 5% take rate on the diesel variant that was available, it sounds more like Cadillac customers told GM what they don’t want.
This customer doesn’t want 14-18MPG. I’ll stick with the 2025 GMC with the newer LM2.
Based on my 2010 Tahoe hybrid performance, a 6.2L, hybrid performance is far superior & had respectable mileage at 20/24MPG.
This customer doesn’t want 14-18MPG. I’ll stick with the 2025 GMC with the newer LZO (corrected).
Based on my 2010 Tahoe hybrid performance, a 6.2L, hybrid performance is far superior & had respectable mileage at 20/24MPG.
When you don’t try to promote a product, you are likely not to have good sales. Vast majority of of Cadillac owners , likely have never driven a diesel before anyway. I have a 21 Sierra with the 3.0, and consistently average over 30, therefore it makes more sense than a gas model that would be lucky to average 20 mpg.
I’d too would trade my truck for a large suv if they’d offer the big Duramax.
The Escalade IQ is a better option than the Diesel engine because it is cleaner and quiet. Only a few Diesel heads would still want it, such as Jim here!
I’m not sure why all the LM2 hate. LOVE my 3.0L in the Tahoe and ran into a guy who had the LM2 in his Escalade and he really loved it… averaged 32MPG on 600 Mile trip to Hersheypark. I think it’s great they double down on the more sporty aspect of the Escalade V. If GM did not have the LM2 my driveway would have the toyota sequoia…. which is not as great anyway.
This Marketing exec is really out of touch with their customers. I purposely bought a 2024 Escalade Diesel because of the torque and miles per gallon. I didn’t want their 6.2l V8 that keeps breaking down. They don’t market these diesels, they don’t do anything to get people interested in them. They don’t realize people who buy these for chauffeurs buy the diesels on purpose to get more mpg’s. They haven’t even asked us why the 5% are buying them. Above all else the fact that they didn’t even give us the new LZO engine and we still bought the LM2 engine plus they manufacture these along with Yukons and Tahoes so there is no real need to remove the diesel. Very uneducated decision.
I agree. I wanted to buy a 2025 with the diesel for the RANGE and no other reason. Very discouraging. I’m waiting to see what tech features will be available on the Yukon Denali and might buy that instead.
GM absolutely did a LOUSY job promoting the diesel option on the Cadillac, just like earlier model Chevy Cruze and Equinox diesels. Having owned a 2019 diesel Cruze, which consistently delivered 49 mpg, I can’t tell you how many times people would approach me out on the town and all would say “I didn’t know you could get a diesel in that car”. Time after time I heard those words. I’m sure it’s the exact same case with the Caddy. Had the no-cost option diesel truly been promoted — sales would have skyrocketed. GM is to blame for the 5% production rate, not the consumer. Every single person I’ve spoken with who owns a diesel Escalade, Yukon, or Suburban is totally pleased with the product and one lady even boasted about her SUV returning almost 30 mpg!!
Correct, absolutely love my diesel Escalade. Switched from petrol version to Diesel and what a difference in consumption, V8 gas had to fill up every week or more often, diesel – maybe every 2-3 weeks. Plus you go for 600 miles or more before you need to fill vs V8 was more like 300-350. And the torque… People are staring when I pull up at the diesel pump with this one, and yes hardly anyone knows they exist. Sales people do not advertise them and it’s hard to find one at all. Best Escalade so far. A steady 30mpg vs 20 on highway and 22-25 vs 13-15 in city.
They talk about a “low take rate” for the diesel, & yet when I tried to order my ’24 Escalade Sport with the 3.0 DMax, I was told it wasn’t currently available.
It probably didn’t make that much difference in the take rate, but still…
That’s a shame. I love the LM2 in my Sierra, and will eventually want move to a full size SUV with the 3.0, one less option now.
I agree, this seems like a poor marketing job. The MPG and range sell this engine. Absolute waste getting the 6.2 for its mpg, most drivers of this truck dont need the power over efficiency. Not to mention I’d much rather tow with the LM2 also. Not enough convincing people driving a diesel isn’t a big change.
A friend of mine bought the Escalade because it had the LM2. He loves it and brags about the MPG.
And gas prices are not a factor for him. It’s all about efficiency. I have the Colorado Diesel and both of us get the (I didn’t know they had a diesel in those vehicles)
Poor marketing on GMs part.
Also why isn’t the amount of fuel used and MPG taken into consideration when it comes to the diesel efficiency. Diesels with a DPF are very clean engines.
How GM hasn’t squeezed at least 500hp out of the 6.2 after all these years is baffling. No hp increases in the NA motor for eons is frustrating. I was a young man when that thing was putting out 420hp.
If the line was a.year long on delivery, of course customers moved on. Just the way you set it up!
Dealers do not want to selll diesel engines. Also allocating diesel Chevy or gmc or Cadillac limited. I am a owner of 2 suburban and love diesel engine. Dealer r did not want to put my order in diesel engine. I had difficulty to find a dealer who had diesel engine and want to take my order. I could not able to buy Cadillac Escalade. Instead of coming a conclusions og low sales; They should of train sales people about benefit if diesel and should of more allocation of diesel engine option. This is a wrong statement who tells low sales record. Diesel engine option must have offer for Cadillac, Chevy or GMC. 6.2 engine; you can not use 87 octane. Most of buyers do not want spend $130 or more for gas . How many consumers knows about diesel engine performs over 30 miles per gallon? If you do not advertise and train dealers; you will have poor performance…
You absolutely can run 87 in those 6.2 motors, slight decrease in power and mpg, but no damage or anything. 93 is only recommended.
Not sure why some of y’all keep saying horrible decision by GM, or marketing more would have made a difference or how GM is out of touch with their customers. First, THE CUSTOMERS MADE THE DECISION, they only bought 5% of them. Seems they are 100% in touch with their customers. Second, this class of vehicle (luxury) isn’t diesel friendly. Most would gladly pay a little more in mpg and gas prices for more power, quieter, smoother and cleaner running. This is a little better seller in the more mainstream Chevy and GMC, but you have to know the customer class you are dealing with. A 100k escalade, fuel savings doesn’t matter among many other things. Sadly, GM got this right. No amount of TV ads and marketing would have changed that. You are in the minority here…
Agreed on the fuel octane. I taught this in a trade school. The only difference is in the amount of “knock” reducing additives blended in. You might possibly see reduced power due to the engine adjusting its ignition timing also to avoid knock. I’ve had a couple of GM vehicles with the 6.2. I ran regular in the cool weather months, and switched to premium during the hot summer months just to avoid knock while using the A/C. I really didn’t notice any difference in power.
On the other hand, when I couldn’t get the Diesel in my ’23 Escalade, I went with the 6.2. Yes, LOTS of power, but the 12 – 12.5 mpg I was getting around town completely turned me off. (I sold it) And no, I do NOT have a heavy foot.
I also think (JUST MY OPINION) that most potential Escalade buyers really don’t know much about the 3.0 Dmax. They automatically associate it with the big, smoky, clattering monsters in 18-wheelers. This engine is amazingly quiet, and every bit as capable as the 6.2 around town. (but more economical) Which is probably why much of the small take rate for these went to Escalade Limos, which when they age out will now likely be replaced by Yukon Denali Ultimates. (WITH the 3.0 LZ0 Dmax)
The 3.0 Dmax is one of the best engines GM has offered in the full-size trucks and SUV’s. As is often the case, GM doesn’t promote their own powertrains so nobody buys it. Do they really think the dealers are going to promote the diesel option? Most salesmen don’t have a clue about the vehicles.
TMI
I disagree with you. I used to work for GM and GM dealerships. I know the demand. You probably not own a Duramax engine. You think I am a minority buyer. I buy Suburban, Escalade every year. I know there is a market for Duramax Engine. IT is more reliable and quitter than gasoline engine. It has more torque and good for hauling a boat. GM customers do not know even Cadillac Escalade offers diesel engine. Even salespeople who woks in dealership do not know it. Did you see any advertisement display diesel engine ? Customer did not give decision because there was no allocation for diesel engine. If they had, most of them sold out. Also you mention that 100k Escalade buyer do not care saving money….. This is poor judgment. I know most of the people do not want to buy full size SUV’s because they think than they re gas guzzler. ( it is not true) . Dropping a Duramax engine; it is a horrible decisions. They will lose market share to Lincoln on fleet sales. There are many limousine companies want to have diesel Duramax engine in their fleet vehicle. There is a big market for diesel engines in SUV like Escalade or Suburban or Yukon Xl .
Also you mention that customer made a decisions. It is not true. 2021 to 2025 any sale of suburban Yukon or Escalade had restrictions when you put a order. None customer made a decisions. They only bought what they can find in dealer hand. You have poor knowledge about the subject we discuss. You only looking things from your needs. You thinking buying a diesel engine , poor people decisions they should not buy a Escalade if they can not effort 93 gas price. ( by the way you can but Suburban around 100k too)
Gm can not market their products well ( same thing with Camaro ) ….. i can add more input about this subject but nothing will change anything. If you drive and own a diesel engine, you will want a diesel engine in your next GM SUV. Duramax engine should be default engine for full size SUV. Gasoline engine should be options.
Han, thanks for making so many great points. I didn’t realize a diesel was an option in the Escalade until a year or so ago, and when I researched it I read rave reviews and I wanted one! Then I had such a terrible time trying to find an Escalade with a diesel engine, and met with such disinterest from my local dealers, that I eventually gave up in frustration and just kept my Range Rover (with a plan to do a factory order 2025 Escalade with the new diesel, before it was cancelled.)
And to those people who suggest that folks who are buying Escalades don’t care about gas mileage — you’re wrong. Cost is not an issue for me (as it is for limo companies), but efficiency is — I care about how much fuel I burn, and there is less guilt with a more efficient engine. Though most of all I appreciate the RANGE that a diesel engine offers — which is why I’ll look at the 2025 Yukon Denali diesel when it’s announced on 8/19, or maybe buy a new Range Rover.
Incidentally, I would gladly pay a large premium if I could get a 2025 Escalade with a diesel engine.
Randy
Thank you for understanding. Some people like TMI thinking that luxury vehicle should not be diesel…. People who can effort Escalade should pay the price. ( it is wrong) ” And to those people who suggest that folks who are buying Escalades don’t care about gas mileage — you’re wrong. ” This is not what i think . I was responding to author name “TMI ”
I am in same boat like you are. I can not get or order Cadillac Escalade Diesel. If this difficult for me; it will be more difficult for normal consumer. This is how GM getting managed …. without getting research, People like “TMI ” no knowledge so ever and get conclusion that we did not sell enough Cadillac Escalade Diesel. There is no demand….. It is not true… vehicle never get on market proper way. Dealers did not know there is a Diesel engines…. available … even they know, there is no allocation for dealer to put a diesel engine escalade in Gm data bank….
Keep doing bad marketing GM……
Han,
Exactly. As I mentioned a few enries back,I had a ’23 Escalade Sport and really liked it, but when I went to order, I was told the Diesel “isn’t currently available” so instead of waiting, I mistakenly went ahead and ordered it with the 6.2 gas engine. Again, a great vehicle but the mileage was SO bad (12-12.5 mpg in town) plus at an epa rated 18mpg highway, there was NO way i’d even consider a road trip with it. (Which is why I got rid of it)
Further, when you sit down and truly compare options, there are very few things an Escalade comes with that the Yukon Denali Ultimate does not. In fact, the sliding front console (which I really like) is NOT available on the Cadillac. So, bottom line, switching to the GMC really isn’t a big deal. (Plus, it costs less!)
You do not advertise diesels except the big one. I have the Equinox and its gets 60+ mpg on the road and average in town 44 mpg. You quit making them because of low demand. I get it all the time at the pumps when I ‘m filling her up, people say i did not know they put diesels in the Equinox. I promise you that Escalade with the 6.2 wont get any where close to 30 mpg’s
It is a Shame , that more People don’t see the diesel as the only way to drive a SUV for a long , care free time ! I have been driving my 2014 MB Blue Tec Diesel , for 90,000.0 miles so far and No Problems ! Look at Europe , how many Diesel’s there are still running after 300,000.0 Miles !!! The ultimate American Car or SUV is Diesel Powered . I want a Escalade with a Diesel , but I do not have a job anymore , being retired ! So, I better win the LOTTO , before their ALL GONE ! I would buy everyone in the Family one !!! People are so , programed in other views , that they are MISSING the Boat, { DIESEL } .