Report: Dealers not sold on GM’s all-electric vision for Cadillac can sell out
Dealerships not sold on General Motors' plan to make Cadillac all-electric can sell out, according to an Automotive News report.
The automaker is offering dealers unsure about the plan up to $500,000 to drop their Cadillac franchises, the industry trade journal reported.
Cadillac has been declared the standard-bearer of GM's electrification efforts, which include an investment of $27 billion to launch 30 new models across multiple brands by 2025, with Cadillac selling mostly electric vehicles by 2030.
As part of that vision, Cadillac dealerships are being required to install charging stations and other equipment needed to service EVs, as well as provide accompanying employee training. A previous Automotive News report pegged the cost of these upgrades at $200,000 per dealership.
The required investment is one of the reasons GM made sure its dealers were in the loop on its electric-vehicle plans through the decade—and part of a preview held earlier this year.
In the past, dealerships have opted out of selling electric cars if they felt the return on investment would not be sufficient. But this is the first time an established brand with a full lineup of internal-combustion models has attempted a transition to all-electric. Smart previously went all-electric North America, but it was already selling a battery-powered version of its Fortwo alongside gasoline models. Consequently, Cadillac could provide the template (or a cautionary tale) for other established brands should they decide to shift to electric cars.
Cadillac Lyriq concept
Cadillac's electric transformation will start with the Lyriq 300-mile crossover, which will be built at the Spring Hill, Tennessee, factory that once served as the launch point for Saturn. Just this week, GM confirmed that the Lyriq launch will be pulled forward to early 2022.
As electric cars segue in, they may also introduce a distinct design language. In an interview earlier this year, Cadillac design director Brian Smith said the automaker is "making a bit of a departure" with its EV styling.