I think the execs at Cadillac are dead set on EV as soon as possible. From the various interviews of engineers and team leaders during the launches of both the Blackwings and the Escalade V, this is the last hurrah for ICE + Caddy.
GM is already going to make another generation of V8 engines, so it's likely the Camaro would get maybe one more gen, as we have 7 years until most of the ICE-death-sentence regulations kick in around the world. Maybe it would be mild-hybrid to boost the MPG and still allow for a robust aftermarket.
Ford just redid the Mustang — Stellantis will likely make an i6 sports something alongside their mega EV hellcat – which leaves GM wondering if they should leave such a piece of the pie on the table.
Compared to other sports cars, the Camaro sells well.
in 2022 here are the sales numbers for common, relatively affordable sports cars:
Subaru BRZ: 3,345
Supra: 4,952
MX-5: 6,172
GR86: 11,996
WRX: 18,662
Camaro: 24,652
Mustang: 47,566
Challenger: 55,060
3rd aint so bad when you eclipse the largest automotive company in the world with only a single model against their 3+ sports models (Toyota; GR86, Supra and Corolla GR).