Tuesday, January 31, 2023
News Cadillac Dealers not Wanting Electrics Getting Buyout Offer: Report

Cadillac Dealers not Wanting Electrics Getting Buyout Offer: Report

Cadillac letting EV-afraid dealers walk away with cash

  • Up to half a million for dealers not wanting to buy EV infrastructure

  • Deal could help Cadillac weed out some smaller showrooms


Cadillac dealers who aren’t thrilled with the brand’s transition to electrification are getting an out, says a new report. The dealers are being offered up to half a million dollars to give up their franchise if they’re adamant that they don’t want to move to electric.

Last week, GM announced that Cadillac would be getting EVs sooner than they had said previously and that it is looking at the brand going EV-only by 2030. But some dealers don’t want to make the investment into adding charging stations, tools, and training for EVs, so Automotive News reports, GM is offering them a buyout in exchange for their franchise.

“We wanted to move fast and make sure dealers are ready for the acceleration,” Mahmoud Samara, vice president of Cadillac North America, told Automotive News. “This is purely an option for those dealers who feel the EV journey is not suitable for them.”

The offers range from US $300,000 to $500,000, according to the report, and all of Cadillac’s 880 US dealers are said to be eligible. Samara told AN he expected most of the brand’s dealers to make the move to EV, not to take the buyout. The report suggests that for some Cadillac dealers, who may sell only a few of the brand’s vehicles a month, the offer could represent up to 10 years of new-vehicle profits.

It’s not the first time Cadillac has encouraged some dealers to shut their doors, making smaller offers back in 2016 to low-volume stores, though the report says few took the offer. This time, though, Cadillac is sending a clear message to dealers, who can be averse to changing automotive and technology trends: EV up or get out.

Trending Now

The Genesis X Convertible Concept Will Enter Production as a Halo Car

The brand’s CEO made the announcement during the Genesis dealer meeting. This model could be priced around $200,000 to $300,000. No specifications have...

A Canadian Made a 15,700-kilometer Road Trip in a Hyundai IONIQ 5

Patrick Nadeau, From Disraeli (QC), drove from his home to Mexico and back. His car is a Hyundai IONIQ 5 Long Range RWD. ...

Audi is Working on an Electric RS6 e-Tron that will be launched Next Year

This model will use the new PPE platform and it will feature a wider body and larger wheels. The A6 e-Tron concept reportedly...

The All-New 2024 Mazda CX-90: Everything You Need to Know

It features two new hybrid powertrains. The CX-90 is not only the most powerful Mazda ever but the most luxurious. Mazda Canada has just...

The Next Toyota Tacoma was Revealed in Patent Images

The new Tacoma will look very similar to the Tacoma EV concept and the current Tundra. A hybrid powertrain is likely to be...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.