For a brief period that ended not long ago, Cadillac offered a unique twist on its iconic luxury SUV by offering a diesel-powered version of the Escalade and 15-inch-longer Escalade ESV. Available for the 2021 through 2024 model years, the Duramax Cadillac Escalade represented a rare fusion of American luxury and diesel efficiency—a move that catered to buyers looking for both towing capability and long-range fuel economy but apparently didn’t find that many.

At the heart of the diesel Cadillac Escalade was the 3.0-liter Duramax turbodiesel inline-six engine, known internally as the LM2. The Escalade never got the updated LZ0 diesel that’s now in GM’s half-ton trucks and SUVs. This powerplant delivered 277 horsepower at 3,750 rpm and a robust 460 lb-ft of torque at just 1,500 rpm. Paired with GM’s 10-speed automatic transmission, the diesel Caddy offered smooth, refined shifts and impressive pulling power, making it an ideal choice for towing and for family road trips.

Towing capacity for the diesel-powered Escalade was about 8,000 pounds when properly equipped, with a payload capacity hovering around 1,300 to 1,650 pounds, depending on configuration. While the diesel’s towing rating was slightly below the gas-powered 6.2-liter V8 model (which offered up to 8,200 pounds), its low-end torque gave it confident pulling power, especially under load or at altitude. The diesel also delivered impressive fuel efficiency. EPA estimates reached up to 21 mpg (city) and 27 mpg (highway) for rear-wheel-drive models (with four-wheel-drive versions losing 1 mpg all-around), a significant improvement over the thirsty V8.

The LM2 Duramax engine wasn’t exclusive to the Escalade. The updated LZ0 version is still offered in other GM vehicles, including the Chevrolet Silverado 1500, GMC Sierra 1500, Chevrolet Tahoe, Chevrolet Suburban, and GMC Yukon/Yukon XL—proving its versatility across GM’s full-size truck and SUV lineup. Known for its quiet operation and advanced engineering, the LM2 featured a lightweight aluminum block, variable-geometry turbocharger, and active thermal management.

Cadillac quietly dropped the diesel option after the 2024 model year. While no official explanation was given, several factors likely played a role: low customer demand for diesel in the luxury segment, tightening emissions regulations, and Cadillac’s accelerating transition toward electrification with models like the Lyriq and upcoming Escalade IQ.

Pros of the Diesel Cadillac Escalade:

• Exceptional torque for towing and hauling
• Great fuel economy for a full-size luxury SUV
• Smooth, refined, and quiet diesel performance
• Long driving range between fill-ups

Cons of the Diesel Cadillac Escalade: 

• Higher upfront cost than the base 6.2-liter gasoline engine, but only by $100
• Diesel fuel is more expensive in many regions
• Slightly lower towing capacity than gas V8

In the end, the diesel-powered Cadillac Escalade, identified by its 600D liftgate badge, was a niche offering that delivered impressive real-world usability and long-distance capability without sacrificing luxury. The gentle clatter of the diesel paired with soft-close doors, illuminated sill plates, and adaptive aired suspension proved that diesel power could be luxurious. For those few model years, it provided a quirky, compelling alternative to the gas-powered V8. Will it one day be a sought-after rarity among Cadillac enthusiasts? We doubt it, but time will tell.