About 150 U.S. Cadillac Dealers to Exit Brand Rather Than Sell Electric Cars--Update
December 04 2020 - 2:36PM
Dow Jones News
By Mike Colias
About 150 General Motors Co. dealers have decided to part ways
with Cadillac, rather than invest in costly upgrades required to
sell electric cars, according to people familiar with the plans,
indicating some retailers are skeptical about making the pivot to
battery-powered vehicles.
GM recently gave Cadillac dealers a choice: Accept a buyout
offer to exit the brand or spend roughly $200,000 on dealership
upgrades -- including charging stations and repair tools -- to get
their stores ready to sell electric vehicles, these people
said.
The buyout offers ranged from around $300,000 to more than $1
million, the people familiar with the effort added. About 17% of
Cadillac's 880 U.S. dealerships agreed to take the offer to end
their franchise agreements for the luxury brand, these people
said.
The buyouts are an early sign of looming changes for car dealers
as traditional auto makers move aggressively into electric
vehicles.
(More to Come)
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
December 04, 2020 15:21 ET (20:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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