Cadillac requires dealers to invest $ 200,000 on electrification

Cadillac requires dealers to invest $ 200,000 on electrification

September 18, 2020 0 By autotimesnews

Cadillac has advised its dealerships in the United States to invest at least $ 200,000 to prepare a fleet of future electric vehicles.

The automaker recently unveiled its first all-electric car in the form of the Lyriq show car, and while it won’t hit the market until 2022, a number of other electric vehicles will follow as Cadillac prepares to launch an EV lineup by the end of the decade.

Rory Harvey, vice president of sales, service and marketing for Cadillac, told Auto News that charging stations account for most of the $ 200,000. He added that large dealerships may have to spend more, and that costs could rise as the brand’s EV range expands. This amount will also include new tools and training.

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“Now is the time to start working with our dealers to prepare for this,” added Harvey. “It takes a lot of time to make sure they’re completely ready.”

Cadillac has worked with its dealership council to develop new investment requirements that will be integrated into the brand’s new franchise agreement, which all dealerships must comply with when signed on November 1. At the same time, dealers who cannot invest the required $ 200,000 may remain with the automaker, but their future will need to be discussed with representatives of the brand. Harvey added that dealers can allocate costs and simply have to ensure that all necessary updates are completed before the fourth quarter of 2022.

This came just a week after GM began asking non-Cadillac dealerships to spend between $ 120,000 and $ 200,000 to upgrade their own electric vehicle.