Dealerships of the luxury brand can receive more than $500,000, if they aren’t ready to switch to all-electric mobility, or to start preparing themselves to EV sales only.
UPDATE of Dec. 5 2020: Nearly 1 in 5 Cadillac dealers (17% or roughly 150 ones) in the USA reportedly have decided to take the buyouts rather than make costly upgrades for selling and servicing electric vehicles.
Last week General Motors boosted its EV and autonomy budget by 35% through 2025.
The Cadillac Lyriq, the first pure electric car of the brand, will arrive in early 2022 – 9 months sooner than the company initially planned. GM expects to sell only zero-emission electric-powered Cadillacs by 2030.
Voila! Cadillac dealers have to solve until November 30, whether they agree with the EV-future of the marque or get out instead, Automotive News reports.
The offers range from $300,000 to upward of $500,000, according to insiders. Those dealers which accept a buyout must agree not to discuss it in public.
All 880 dealers of Cadillac in the United States are eligible, though GM’s management has made formal offers mainly to the ones hesitating about selling electric cars. The information about the number of dealers who have already accepted the buyout isn’t disclosed.
For small dealers who monthly sell few Cadillac vehicles, a $300,000 to $400,000 payment may be equal to 5 to 10 years’ worth of new-vehicle profit.
Those taking the buyout will be able to sell new Cadillacs through 2021 and to access the brand’s used-vehicle auction through 2024, unless other arrangements have been made.
The dealers who express commitment to electric vehiles will have to prepare their stores and services accordingly, to make necessary renovations and meet infrastructure requirements. They may have to spend far beyond Cadillac’s estimated $200,000, as these preparations are costly.