1981 Cadillac V8-6-4: The Real Reason Cadillac Dropped Its “Modulated Displacement” Engine After Only A Year

High angle front 3q view of a Bordeaux Red 1981 Cadillac Fleetwood Brougham d'Elegance sedan with an inset showing the "V8-6-4 Fuel Injection" badge

In 1981, Cadillac rolled out a new version of its 368-cid V-8 engine with a “modulated displacement” (cylinder deactivation) system that let it run on eight, six, or four cylinders under different conditions. Dubbed the “V8-6-4” engine, Cadillac called it “a prime example of American innovation in action,” but its poorly driveability and poor reliability soon left Cadillac with a host of angry owners, outraged dealers, and class-action lawsuits. However, contrary to popular belief, those ills were NOT why the V8-6-4 engine disappeared from most models after only one year.

"V8-6-4 Fuel Injection" badge on the fender of a 1981 Cadillac
1981 Cadillac Fleetwood Brougham d’Elegance in Bordeaux Red / Mecum Auctions

What GM called “modulated displacement” is today more commonly called “cylinder deactivation,” which better describes the idea: shutting off certain cylinders of an engine under light or moderate load as a way of saving fuel. Cylinder deactivation is not uncommon on modern cars and light trucks. The EPA reported that about 15 percent of U.S.-market light vehicles used it in the 2023 model year.

Cutaway diagram of the modular displacement system with cylinder active versus cylinder inactive

The cylinder deactivation system Cadillac adopted for 1981 was based on a series of 1975 patents by the Eaton Corporation. Four of the engine’s eight cylinders had solenoid controls that could disengage the rocker arms at the fulcrum, preventing the intake and exhaust valves on that cylinder from opening. The piston would still move, compressing the air in the cylinder, but no fuel could enter the cylinder. The system was programmed so that cylinders would be deactivated in pairs, beginning with the 1 and 4.

Scanned photo of a full-size cutaway model of the Cadillac modular displacement system showing the solenoid controls

Ford had experimented with its own cylinder deactivation system based on the same patents, but they found it was difficult to manage the transition with mechanical controls. Cadillac integrated the modulated displacement system into its “Computer Command Control” digital engine management system, which also controlled spark timing and throttle body fuel injection, with speed-density metering based on manifold absolute pressure with oxygen sensor feedback control. (This was NOT the Bendix injection system offered on the 1975–1979 Seville, which was an analog port injection system.)

Diagram of 1981 Cadillac V8-6-4 digital fuel injection system, highlighting which cylinders are deactivated in six- and four-cylinder modes

The V8-6-4 engine started on eight cylinders and could cut back to six or four cylinders under light load (although brand-new engines that weren’t yet broken in would rarely run in four-cylinder mode). Pressing the accelerator would reengage the deactivated cylinders in the same order they were deactivated. A display option on the standard MPG Sentinel digital fuel consumption meter would show how many cylinders were currently operating. The engine management computer also had various self-diagnostic and limp-home features, with a “Check Engine” light that illuminated if the computer detected a fault.

Dashboard panel showing power mirror control, electronic climate control, and MPG Sentinel in a 1981 Cadillac Sedan de Ville
Pressing the “ACTIVE CYLS” button on the MPG Sentinel would show how many cylinders were current active / Classic & Collector Cars

1981 Cadillac V8-6-4

Cadillac installed the modulated displacement system on its 368-cid (6,040 cc) V-8 engine for 1981. (GM and the EPA officially identified this engine by its 6.0-liter metric displacement, but Cadillac fans more often call it the 368.) Known on the order form as the L62, it was the last descendant of the 1968-vintage Cadillac 472/500/425 engine family, de-bored to 3.80 inches. In 1980, the L62 engine was offered in both carbureted and injected form, but for 1981, the carbureted version was limited to the commercial chassis. The injected version now had 140 hp and 265 lb-ft, down 5 hp and 5 lb-ft from 1980.

Victoria Plum 1981 Cadillac Eldorado with its hood up
The 1981 Eldorado was available with the Buick V-6 or Oldsmobile diesel V-8, but most had the V8-6-4 engine / Bring a Trailer

The 6.0 liter V8-6-4, as it was described in Cadillac brochures, was standard on all 1981 Cadillac models except the Seville, where the 368 was a no-cost alternative to the standard Oldsmobile diesel V-8. Most models could also be ordered with the six-cylinder LC4 engine, a Buick 90-degree V-6 bored to 252 cid (4,128 cc), as a credit option

Right front 3q view of a maroon 1981 Cadillac Fleetwood Brougham sedan with wire wheels
1981 Cadillac Fleetwood Brougham d’Elegance in Bordeaux Red with V8-6-4 engine (and aftermarket fog lamps) / Mecum Auctions

Although Cadillac had downsized its C-body full-size models for 1977 and the Eldorado for 1979, these were still big cars with curb weights well over 4,000 lb, and V-8 models all had a tall 2.41 axle ratio. Performance was sluggish with the diesel or the Buick V-6, adequate with the V8-6-4: Car and Driver recorded 0 to 60 mph in 11.6 seconds and the quarter mile in 18.4 seconds at 75 mph with a 1981 Sedan de Ville with the 6.0-liter engine.

Left front 3q view of a blue 1981 Cadillac Sedan de Ville in a parking lot
1981 Cadillac Sedan de Ville in Steel Blue with V8-6-4 engine / Classic & Collector Cars

Before launch, GM had claimed that the cylinder deactivation system could improve overall fuel economy by up to 7 percent. Cadillac chief engineer Bob Templin boasted that the system could be good for an improvement of 4 to 5 mpg on the highway — a preposterous claim that bordered on false advertising — and asserted that modulated displacement was worth “more than an overdrive system.” (I can’t help wondering if he was feeling touchy that the new GM four-speed overdrive automatic transmission was available only on RWD V-6 cars for 1981.)

Cadillac V8-6-4 engine under the hood of a Victoria Plum 1981 Cadillac Eldorado
V8-6-4 engine had throttle body injection and integrated digital engine management / Bring a Trailer

Outside of the delirious realm of pre-launch hype, the promised fuel economy benefits of the modulated displacement engine were much harder to spot. Readers of the 1981 EPA Gas Mileage Guide found that the city rating of a De Ville or Fleetwood Brougham with the V8-6-4 engine was still only 15 mpg, the same as the carbureted 1980 6.0-liter cars. Detailed EPA test data shows that the combined mileage of a 49-state 1981 De Ville or Fleetwood with the V8-6-4 was actually 0.7 percent lower than a 1980 model with the 368 and no cylinder deactivation (albeit not enough lower to reduce the window sticker ratings). California De Ville/Fleetwood models were up by 1.18 mpg, an improvement of about 7.2 percent. The 49-state Eldorado and Seville were up by 0.72 mpg, an improvement of 4.3 percent, while California models were up 0.69 mpg, a 4.2 percent gain.

Left side view of a plum-colored 1981 Cadillac Eldorado
1981 Cadillac Eldorado Biarritz in Victoria Plum Firemist with V8-6-4 engine / Bring a Trailer

For Cadillac, the real importance of these slight improvements was that they kept the 1981 cars from incurring a federal gas guzzler tax. In 1980, the tax was only imposed on new cars with an EPA combined mileage of less than 15 mpg; for 1981, the threshold increased to 17 mpg. Falling below that threshold would incur a tax of at least $200 per car (a relative worth of over $900 in 2025 dollars!), something GM was keen to avoid. (There were several GM vehicles in this period that would have been subject to the gas guzzler tax had they not been exempt for other reasons, such as the Chevrolet Impala/Caprice with the four-barrel 350 police engine, which was exempt if initially sold to an actual police agency.)

Front view of a silver 1981 Cadillac Coupe de Ville
1981 Cadillac Coupe de Ville in Sterling Silver / Connors Motorcar Company

I should stress that the gas guzzler tax was an entirely separate consideration from Cadillac’s impact on GM’s Corporate Average Fuel Economy (CAFE) calculations. For 1981, GM needed to achieve a sales-weighted average of at least 22 mpg to avoid civil penalties. CAFE was calculated across the whole corporation, not by division, but Cadillac was still a consequential chunk of total GM passenger car sales, accounting for 1 in every 19 GM cars in 1980 and about 1 in every 17 cars in 1981, so anything the division could do to improve the fuel economy of its cars was helpful. (That’s why Cadillac continued to push the awful Olds diesel, and why they offered the Buick V-6: Both engines had EPA combined ratings of over 20 mpg, which helped to balance the cars powered by the thirstier gas V-8 engines.)

Reliability Woes and Lawsuits

Had the V8-6-4 engine otherwise worked as advertised, probably no one would have been too upset about its still-mediocre mileage, but it quickly became clear that the system had come out of the oven way too soon. Credulous testers like Jim Dunne of Popular Science, sampling carefully prepared cars on the GM Proving Grounds, claimed the transitions from eight to six to four and back were almost imperceptible, but in the real world, changes between modes were often marked by pronounced hesitation and surges. The switch back to eight cylinders was sometimes also accompanied by momentary spark knock as the engine computer recalculated the correct ignition timing. The uneven firing intervals when cruising in six-cylinder mode, meanwhile, created a roughness that could be mistaken for an unbalanced wheel, leading customers to complain that V8-6-4 cars rode unusually poorly.

Close-up of the air cleaner of a V8-6-4 engine in a 1981 Cadillac Fleetwood Brougham
V8-6-4 had 140 hp and 265 lb-ft of torque, giving adequate performance, but driveability was poor / Mecum Auctions

Some of the engine’s problems were actually due to the problems with the fuel injection system. Bob Templin proclaimed throttle body injection “the greatest thing since canned beer” (a fascinating comparison for those of us who find canned beer repulsive), but Cadillac had many problems with leaking or sticking injectors (the first problem was allegedly fixed early on, the second was not), and the system was prone to icing in the intake manifold and MAP sensor pipe. These problems were likely responsible for at least some of the hesitation and stalling that owners experienced.

Illustrated diagram of the Cadillac throttle body fuel injection system, showing the two 10 psi fuel injectors, electronic control module, catalytic converter, fuel filter, and "twin turbine" fuel pump
From a 1980 GM technical paper

Another, more endemic problem was that because the throttle body injection system had only one injector per cylinder bank, there was no way to cut off the flow of air-fuel mixture to deactivated cylinders. In six- or four-cylinder mode, excess fuel would collect around the intake valves of the deactivated cylinders, which then caused momentary over-richness when those cylinders reactivated. This might have been avoidable with port injection, but Cadillac had already abandoned that as too expensive. (Cadillac engines wouldn’t adopt port fuel injection again until 1990.)

Illustration of Cadillac throttle body injection system and its two 10 psi fuel injectors
From a 1980 GM technical paper

Also, in 1981, the concept of the “Check Engine” light was new, and its behavior was annoying to owners and confusing to dealer technicians, who would sometimes replace components multiple times because they had neglected to clear the error codes from the computer after making a repair and thus assumed that the fault still existed. Some owners were troubled to learn that if they didn’t take the car for service promptly enough (within 30 engine starts), the computer would flag them for negligence — which could be used to deny warranty coverage — and that the engine computer also flagged each time the car was driven above 85 mph.

Steering wheel and dashboard of a 1981 Cadillac Coupe de Ville with red interior
1981 Cadillac speedometers still only went up to 85 mph, but the engine computer would flag each sojourn beyond that speed ./ Connors Motorcar Company

Cadillac acknowledged the injector and icing problems, but initially blamed the rest on uneducated owners and poor dealer service. Templin even suggested that owners might be causing the problems themselves by installing electronics that weren’t factory approved, like aftermarket CB radios or car phones. However, a Cadillac dealer service bulletin subsequently admitted that most of the driveability problems were normal, and advised dealers not to “inconvenience” the customer by trying to fix them.

Left front 3q view of a silver 1981 Cadillac Coupe de Ville with a plum Cabriolet vinyl half-top
1981 Cadillac Coupe de Ville in Sterling Silver with V8-6-4 engine / Connors Motorcar Company

Customers were none too happy about that, while dealers screamed that the whole engine management system (including the fuel injection system) was too complicated to diagnose and fix. Some dealers assumed that the fuel injection system was the same one previously used on the Seville — it wasn’t — and demanded to know why Cadillac still hadn’t fixed it. Before long, unhappy owners were filing lawsuits. Cadillac tried to placate them and squelch the “unwarranted adverse publicity” by offering an extended five year/50,000-mile warranty on the whole engine control system, but the most disgruntled customers were not mollified. GM eventually faced class-action suits over the V8-6-4 engine in more than a dozen states.

Letter dated July 20, 1981 on Cadillac Motor Car Division stationary, addressed "Dear Cadillac Owner:"
Owner letter from Cadillac general sales manager L.B. Pryor, dated July 20, 1981, about the newly added 5-year/50,000-mile V8-6-4 engine warranty

These legal battles were further inflamed by Cadillac’s admission that the V8-6-4 engine would no longer be offered after the 1981 model year except on the Fleetwood limousine. Aggrieved plaintiffs added this to their legal complaints, contending that they had essentially paid to beta test an experimental engine that was neither safe nor fit for purpose. Some of the lawsuits dragged on for years.

"V8-6-4 Fuel Injection" badge on the left front fender of a Steel Blue 1981 Cadillac Sedan de Ville
Curiously, none of the listings for these cars specifies whether the modulated displacement system still works / Classic & Collector Cars

It was easy to simply disable the modulated displacement system, leaving the engine running in eight-cylinder mode all the time, but Cadillac warned that doing so would void the warranty. It was probably also illegal for a dealer or mechanic to do it on a customer car — it would likely count as tampering with emissions control equipment, which federal law prohibits — but quite a few did it anyway.

The Actual Reason the V8-6-4 Was Dropped

Despite all that, Cadillac did NOT drop the modulated displacement system because of its driveability and service problems, or because of the lawsuits. As Cadillac stated at the time, the decision to only offer it for one year (except on the low-production limousine) had actually been made before the 1981 models were even launched.

Low-angle front 3q view of a plum-colored 1981 Cadillac Eldorado Biarritz
1981 Cadillac Eldorado Biarritz in Victoria Plum Firemist with V8-6-4 engine / Bring a Trailer

Cadillac offered two explanations for the decision to drop the V8-6-4, one of which was probably partly true and the other mostly false.

Front view of a maroon 1981 Cadillac Fleetwood Brougham sedan
1981 Cadillac Fleetwood Brougham d’Elegance with V8-6-4 engine / Mecum Auctions

The explanation Cadillac gave dealers was that even with the modulated displacement system, there would be no way for the 6.0-liter engine to avoid the gas guzzler tax after 1981, since the 1982 threshold was set to rise from 17 mpg to 18.5 mpg. That part was likely true: None of the 1981 V8-6-4 cars could manage even 18 mpg combined, and it’s unlikely that they would have done much better for 1982. If the 49-state De Ville/Fleetwood Brougham had maintained the same EPA combined mileage as in 1981, it would have been subject to a $350 gas guzzler tax for 1982 and a $500 tax for 1983. (The Fleetwood limousine, which retained the V8-6-4 through 1984, only escaped the gas guzzler tax because its gross vehicle weight rating exceeded 6,000 lb, making it exempt; otherwise, it would have faced a $2,150 tax by 1984.)

List of gas guzzler tax amounts for 1982 and 1983 model year automobiles, showing tax thresholds of 18.5 mpg for 1982 and 19 mpg for 1983, with a maximum tax of $1,200 in 1982 and $1,550 in 1983
Gas guzzler tax rates for 1982 and 1983 from 26 USC 4064(a) (1978)

Bob Templin, meanwhile, claimed publicly that the reason for dropping the V8-6-4 was that the EPA had refused to grant a waiver of the federal carbon monoxide (CO) standard. This was a falsehood wrapped in a half-truth: It was true that GM had applied for an EPA waiver, claiming that the modulated displacement engine couldn’t pass the EPA 50,000-mile durability test at the 1981 standard (3.4 grams/mile CO) without an extra year of work on the control systems. It’s also true that the EPA had denied the waiver request in July 1980, saying that there was no technological reason the modulated displacement engine couldn’t comply with the 1981 standard (as in fact it eventually did).

Table labeled 1981 Model Year Certification Durability Results of GM Vehicles Using 6.0 Liter Modulated Displacement Engines and Throttle Body Injection with the CO columns circled in red
Preliminary EPA emissions analysis of the V8-6-4 engine, published at 45 FR 49895 (July 25, 1980), which led the EPA technical staff to conclude there was no technological reason the engine couldn’t pass the 1981 CO standard of 3.4 g/mile, despite GM claims to the contrary

However, the EPA decision (which was published in the Federal Register and is a matter of public record) makes clear that GM had only requested a waiver for 1981, NOT for 1982 or later years. And, while GM argued that it was in the public interest to grant them a waiver so they could get additional field experience with the cylinder deactivation technology, EPA administrator Douglas M. Costle noted:

GM representatives were not aware of any GM production vehicles which would utilize modulated displacement technology in model year 1982 or beyond. … The lack of future modulated displacement applications leads the EPA technical staff to believe the level of effort expended on solving the control systems problem may have been somewhat limited. [Emphasis added.]

In other words, the EPA had refused to grant a waiver for 1981 (in part) because GM had already admitted that it had no plans to use the modulated displacement technology in 1982 or beyond, not the other way around.

B&W photo of Bob Templin with glasses and a dark suit
Robert J. Templin, Cadillac chief engineer from 1973 to 1984, made a litany of misleading public statements about the V8-6-4 engine and its problems

Also, while Templin blamed the disappointing fuel economy of the V8-6-4 engine on the recalibration needed to meet the 3.4 g/mile CO standard, Costle pointed out that GM officials had testified that “they do not anticipate a significant fuel economy penalty” in meeting the CO standard, and that “GM did not establish costs, driveability, or fuel economy as issues affecting the availability of technology for this engine family.” Costle had therefore concluded that it was “not essential to the public interest or to the public health and welfare” to allow Cadillac to sell cars producing more than twice as much CO as most other new cars (7.0 grams/mile rather than 3.4 grams/mile) just to give GM additional “field experience” with a new engine technology they MIGHT conceivably use again at some unspecified future time.

Left rear 3q view of a maroon 1981 Cadillac Fleetwood Brougham sedan
1981 Cadillac Fleetwood Brougham d’Elegance with V8-6-4 engine / Mecum Auctions

While Templin’s claims were disingenuous at best, they were also ultimately irrelevant: The actual reason Cadillac dropped the V8-6-4 (except on the low-production limousine, which retained it through 1984) was that the division was already preparing to launch the new aluminum-block HT4100 V-8 for 1982.

Air cleaner of a V-8 engine with a "Digital Fuel Injection HT4100" decal
The 1982 HT4100 engine had only 125 hp and 190 lb-ft of torque, but was capable of a EPA combined mileage of about 20 mpg / Mecum Auctions

A lot of Cadillac histories, and even some contemporary accounts of the V8-6-4 saga, give the impression that Cadillac hastily pulled the HT4100 out of a hat in response to problems with the V8-6-4. This of course was not true at all: The all-new engine had been in the planning stages since the mid-’70s, and its development had been common knowledge in Detroit since at least the beginning of 1979. For a while, there was some uncertainty about its exact launch date because the new engine was to be produced in all-new, more heavily automated engine plant in Livonia, Michigan, about 15 miles outside Detroit. At the time GM applied for the 1981 EPA waiver for the 6.0-liter modulated displacement engine, completion of that plant was less than a year away. Once tooling was completed, HT4100 production would begin in July 1981.

B&W photo of the 1982 Cadillac HT4100 engine
1982 press image of the new aluminum-block HT4100 engine

Therefore, even if the modulated displacement system had been completely reliable, the V8-6-4 engine would have only been a temporary stopgap, and its days were numbered as soon as GM authorized construction of the new Livonia plant. The 368 was assembled at the existing engine plant in Detroit, which Cadillac was preparing to phase out, along with the 6.0-liter engine itself. (Although a few cars continued to use it through 1984, production of 1982 to 1984 Fleetwood limousines with the V8-6-4 totaled only 3,093 cars in three years; sources differ on the number of commercial chassis with carbureted 368 engines, but it was surely even fewer than that.)

Left side view of a yellow 1982 Cadillac Coupe de Ville parked on grass
1982 Cadillac Coupe de Ville in Colonial Yellow with the new HT4100 engine / Mecum Auctions

The HT4100 V-8 would turn out to have many problems of its own, and the original version was painfully underpowered, but it was 209 lb lighter than the 6.0-liter engine, and its EPA mileage was much better. Since the HT4100 had a lot less torque than the 368 and was mated to a four-speed automatic with a tall overdrive gear, adding the modulated displacement system wouldn’t have gained much. As Jim Dunne had explained in the October 1980 Popular Science:

Cadillac does not see the variable-displacement concept working in small engines. The 368-cu.-in. V8 in the Cadillac—the biggest displacement engine available on any American car—works fine because it never really taps its full power potential. In smaller engines, there is less margin to tap, so there’s less gain in fuel economy.

Based on Automotive News data, Cadillac sold 165,611 ’81 cars with the V8-6-4 engine, not including an additional 1,200 1981 Fleetwood limousines. Purchasers of those cars who complained that they were basically experimental guinea pigs weren’t wrong: They had paid high prices for an engine that had more bugs than a Florida picnic, which apparently couldn’t deliver its claimed fuel economy benefits while still meeting 1981–1982 emissions standards, and that its manufacturer had decided to drop before the engine even went on sale.

High-angle rear view of a blue 1981 Cadillac Sedan de Ville with matching vinyl top
1981 Cadillac Sedan de Ville in Steel Blue with V8-6-4 engine / Classic & Collector Cars

Eventually, cylinder deactivation would become reasonably reliable (56 percent of U.S.-market GM vehicles used it in 2023), but I don’t think many unhappy Cadillac V8-6-4 owners would have found that very reassuring back in 1981.

Related Reading

Vintage Review: 1980 Cadillac Seville Diesel – “Seems To Serve Little Purpose Other Than To Force The Rich To Go Slumming In Truck Stops” (by Paul N)

Vintage Reviews and Commentary: 1981 Cadillac – The Year Caddy Stopped Firing On All Cylinders – GM’s Deadly Sin #29 (by GN)

CC Video Classic:  1982 GM HT 4100 Engine Promotional Video – World Record Razzie Winner? (by Jim Brophy)