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Bryan1

Unplugged Cadillac dealers ditch brand

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About 150 General Motor Co. dealers are parting ways with Cadillac instead of investing in costly upgrades required to sell electric cars, according to FOX Business.

GM recently gave the dealers the choice: accept a buyout ranging from $300,000 to more than $1 million to exit the brand or spend about $200,000 to upgrade their dealerships for the sale of electric vehicles.

About 17% of Cadillac’s 880 US dealerships agreed to take the offer to end their franchise agreements for the luxury brand, because many of them own other GM brands like Chevrolet and Buick and don’t sell many Cadillacs.

That decision illustrates that even as the value of electric vehicles rises, many car industry insiders remain skeptical about selling and investing in the products.

Dealers are weighing costly facility investments like electrical-system upgrades against uncertainty about demand for the vehicles, which now account for about 2% of U.S. vehicle sales. Some retailers say they are putting off orders of electric models, worried they will sit too long on their lots.

Even in markets where electric vehicles are more popular, like San Francisco, dealers say the lack of commuting during the pandemic has led to a drop off in demand for cars like GM’s Chevrolet Bolt.

 

https://nypost.com/2020/12/06/unplugged-cadillac-dealers-ditch-brand/

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So we are going from 2% electric sales per year to 100% within 15 years? 

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What I see happening is the Dealers who do upgrade and spend all that money for ne equipment etc... will be very disappointed when GM decides to sell Cadillacs on-line and circumvent the dealerships in a few years.

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6 minutes ago, Trailhiker said:

will be very disappointed when GM decides to sell Cadillacs on-line and circumvent the dealerships in a few years.

 

GM isn't circumventing dealerships for its online sales model, and has no plans to do that. GM's online vehicle sales for retail consumers in the U.S. is done through Shop, Click, Drive. GM introduced it in 2013 and it includes dealerships as an integral part. https://www.cadillac.com/shop-click-drive?evar25=gm_com_scd

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1 hour ago, Trailhiker said:

What I see happening is the Dealers who do upgrade and spend all that money for ne equipment etc... will be very disappointed when GM decides to sell Cadillacs on-line and circumvent the dealerships in a few years.


Not possible.

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Update from Automotive News, September 13, 2021. GM confirmed that about 150 former Cadillac dealerships received cash payouts ranging from $300k to well above $500k, and terminated their franchise agreements. This is as predicted back in December 2020. Most of the dealers that remain are ready and eager to support Cadillac's goal of becoming an all electric brand by 2030 and will make the necessary changes to their operations. Cadillac finds that some dealers are all-in for EV future | Automotive News (autonews.com)

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