150 Cadillac dealers will abandon the brand because of electric vehicles

150 Cadillac dealers will abandon the brand because of electric vehicles

December 7, 2020 0 By autotimesnews

They chose not to invest in upgrading their centers and will now receive compensation from General Motors.

About 150 of the approximately 900 Cadillac dealerships in the US will stop working with the brand, writes the Wall Street Journal. The reason is the reluctance to invest in working with electric vehicles.

The manufacturer invited its partners to purchase equipment and install charging stations to sell and service electric cars, in particular, the Cadillac Lyriq crossover. The costs were estimated at about 200 thousand dollars. Those who are not ready to invest in the renovation will have to part with the brand, receiving from 300 thousand to 1 million dollars in compensation. As a result, 17% of dealers preferred compensation.

Almost all American dealerships selling Cadillacs sell cars of other General Motors brands, that is, there is no talk of a complete cessation of cooperation. At the same time, although Cadillac was appointed “the main electric car” in the structure of the concern, other companies will also make cars without internal combustion engines, such as, for example, the GMC Hummer EV pickup. Thus, sooner or later, car dealerships will in any case have to adapt to the changing strategy of manufacturers – or leave the game.