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.
I was going to order a 2025 after seeing the redesign but now, I'll shift to the Yukon, just to get the LZO.
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...
I had the same issue
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!