GM to Cadillac Dealers: Invest $200K For EV Sales Or Take A Buyout
Buyouts of up to over $500,000 are reportedly being offered.
Electrification is the future and GM is one of the brands who have been bullish about this. This is most especially true with its luxury brand, Cadillac; The General has already poured a hefty amount of money into Cadillac EV development, and it’s not showing any signs of slowing down.
So much so, that the American company is reportedly offering buyouts to Cadillac dealers who are not willing to sell EVs, according to Automotive News. Of note, GM requires updates to dealerships who want to sell Cadillac EVs – an upgrade that could cost at least $200,000, which involves adding charging stations, as well as investing in the tools and worker training for vehicle repairs.
Gallery: 2023 Cadillac Lyriq
But for those who aren’t ready to join the trend, or at least not willing to invest so much money for the required upgrades, GM is reportedly offering $300,000 to over $500,000 for them to drop the Cadillac brand in their dealerships.
The buyout amount isn’t official, though, and was given to Automotive News by undisclosed sources. The publication said that Cadillac declined to disclose the exact details of the buyout option, plus dealers who will opt for this must agree not to reveal the details in public.
Automotive News also reported that dealer lawyers and consultants said that Cadillac dealerships who opt for the buyout can still sell Cadillacs through 2021, and have access to the company’s used-vehicle auction up until the end of 2024. These dealers have until November 30 to come up with a decision.
Cadillac isn’t the only GM brand that’s pushing for electrification. GMC is on the trend, too, with the Hummer EV, but only half of GMC dealerships are willing to sell the revived nameplate, which will, of course, require similar aforementioned upgrades. However, we haven’t heard of any GMC buyout deal in connection to selling Hummer EVs.
Source: Read Full Article