2025 Sees the End of the Diesel Cadillac Escalade Due to Lack of Demand

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By Car Brand Experts

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Cadillac has unveiled the 2025 update for the Escalade, featuring a refreshed front design and an array of screens. However, along with these enhancements, the luxury SUV has also bid farewell to a notable feature: its diesel engine option.

The existing Escalade’s turbocharged 3.0-liter Duramax inline-six engine has been a standout aspect. Spotting one on the road has become a rare delight, especially given the dwindling number of new diesel SUVs in the U.S. market today. Besides the GMC Yukon, Chevy Tahoe, and Chevy Suburban—its siblings within the same platform—seeing a diesel luxury SUV in the price range of $100,000 is even more uncommon. Generally, consumers outside of Germany do not associate diesel engines with upscale vehicles, making the Duramax-powered Escalade particularly unique.

Regrettably for automotive enthusiasts, the diesel variant did not attract sufficient interest from consumers to warrant its continuation.

A spokesperson for General Motors informed The Drive, “Due to limited customer demand, Cadillac will discontinue offering a diesel engine option for the Escalade, starting with the 2025 model year.”

Beyond its distinctiveness, the diesel engine offered tangible benefits as well. It produced 277 horsepower and 460 lb-ft of torque, while achieving a fuel economy of 22 mpg combined—significantly better than the gas V8’s mere 16 mpg. Annually, the Duramax was estimated to cost owners around $2,550 in fuel expenses, while the 6.2-liter V8 would set them back approximately $4,050. The difference in pricing to opt for the Duramax over the V8 was a modest $100, which seemed like an obvious choice for many.

Looking ahead, consumers seeking alternatives to the traditional gas engine will have an option with the new Escalade IQ, an all-electric variant for those who prefer not to engage with V8 engines. Nevertheless, the Escalade IQ represents a fundamentally different vehicle as it utilizes GM’s electric-only Ultium platform. The overlap in customer interest between the two models may be limited, but the interiors of both are now outfitted similarly, featuring ample screens and speakers likened to those found in amphitheaters.

While the discontinuation of the Escalade’s diesel engine might not elicit widespread mourning, it is certainly disappointing to see the departure of one of the more intriguing engine options on the market..

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