Cadillac dealers disinclined to spend a sackful of money on revamping their businesses to sell and service electric vehicles received some moderately good news this month. General Motors is willing to issue them fat stacks of cash for stores that cannot rationalize the sizable expense of installing charging stations, training staff, and retooling the garage.
While it smacks of the consolidation efforts headed by Caddys former President Johan de Nysschen in 2016 with Project Pinnacle, and makes us wonder how the brand plans on turning a profit if it keeps eliminating storefronts, GM thinks buying out dealers who dont want to participate in the EV experience is the way to go. Though the company has expressed an interest in gradually embracing a more digitized sales model as Cadillac strives to become an exclusively electric brand by 2030.
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 earlier this week. This is purely an option for those dealers who feel the EV journey is not suitable for them.
According to the outlet, many offers range from $300,000 to upward of $500,000. However, Cadillac has declined to give any official figures, and dealers who accepted the deal arent allowed to discuss the program publicly.
We had discussions with all the dealers around what is our EV journey, how are we going to get there? It was a very open, transparent discussion allowing all dealers to understand and buy in, Samara said, noting that about 880 U.S. dealerships are currently eligible for the buyout. While she believes most will progress with Cadillac in its EV journey, low-volume dealerships may have no choice but to take the money and run.
From AN:
Many smaller dealers, after years of feeling like GM wanted them gone, are no longer as eager to stand firm as the costly shift to EVs looms, said Stuart McCallum, who leads the automotive consulting and accounting practice for Withum accounting firm in Princeton, N.J. Some just hope to negotiate a more lucrative deal before agreeing to give up their franchise, he said.
Theyre looking at this as a godsend almost, McCallum said. There is wiggle room in the offer. Its not a take-it-or-leave-it.
For dealers who sell few Cadillacs a month, he said, a $300,000 to $400,000 payment might be equal to five to 10 years worth of new-vehicle profit.
But larger storefronts might see things differently. Unless they negotiate a particularly sweet deal with GM, these arent favorable terms. Of course, if they believe spending $200,000 is too big a risk to take on the gamble that people will want Cadillac EVs in the years to come, there arent many alternatives. They have until the end of the month to make a decision and notify General Motors.
[Image: Lerner Vadim/Shutterstock]
Related
Continue reading here:
24 Comments on GM is Paying Cadillac Dealers to Ditch the Brand... - The Truth About Cars
- SwitchArcade Round-Up: 'Scott Pilgrim vs. The World', 'Shadow Gangs', and Today's Other New Releases and Sales - Touch Arcade - January 15th, 2021
- Their Uniforms Say Ohio State and Alabama. The Players Are From Everywhere. - The Wall Street Journal - January 13th, 2021
- Ziggurat Interactive Releases First Retro First Friday Pack Of 2021 - Bleeding Cool News - January 9th, 2021
- TV tonight: another day in paradise for detective Ralf Little - The Guardian - January 9th, 2021
- The Board Games Global Market is Expected to Grow at a CAGR of 13% Between 2021 to 2026 - Yahoo Finance - January 6th, 2021
- 50 Best TV Shows To Watch In 2021 - Highest Rated Television Series - OtakuKart - OtakuKart - December 29th, 2020
- Red Bull think they have secret weapon to catch Lewis Hamilton and Valtteri Bottas | F1 | Sport - TechnoCodex - December 23rd, 2020
- HBO's Industry creators and Myha'la Herrold break down season 1 finale - Entertainment Weekly - December 22nd, 2020
- Research at Microsoft 2020: Addressing the present while looking to the future - Microsoft - December 22nd, 2020
- Deals of the Week, December 11 to 18 Growth Business roundup - GrowthBusiness.co.uk - December 18th, 2020
- Turns Out Its Pretty Good: Doomscrolling - The Cut - December 18th, 2020
- A Letter to My Kids - The Good Men Project - December 15th, 2020
- Yakuza Remastered Collection On The Way For Xbox & PC - Bleeding Cool News - December 13th, 2020
- Hitman 3 Gets A New Trailer Showing Off The Features - Bleeding Cool News - December 9th, 2020
- Reflections on 40 years: thanks for the memories (we can remember) - NOLA.com - December 9th, 2020
- AMD Ryzen 7 5800X Review: The Pricing Conundrum - Tom's Hardware - December 8th, 2020
- AI has almost solved one of biologys greatest challenges how protein unfolds - ThePrint - December 8th, 2020
- Demis Hassabis interview: the kid from the comp who founded DeepMind and cracked a mighty riddle of science - The Times - December 6th, 2020
- Online Chess and Working from Home - Chessbase News - December 5th, 2020
- Full Fischer film in YouTube - Chessbase News - December 5th, 2020
- New C360 CEO Howard Wright Sees Broadcast Tech Putting Fans on the Field of Play - Sports Video Group - December 5th, 2020
- This is what would happen if a Hind took on a Cobra - We Are The Mighty - December 5th, 2020
- Hyundai Takes The Wraps Off Its E-GMP Electric Car Platform - CleanTechnica - December 3rd, 2020
- Top 9 Reasons to Rent an RV when you traveling - The Dubrovnik Times - December 3rd, 2020
- Akron flashback: Some childhood toys you never forget - Akron Beacon Journal - December 1st, 2020
- Skilling Open QF2: Day of the Comebacks - chess24 - November 27th, 2020
- Jelurida Announces Bridge Champ, an On-Chain Version of the Famous Card Game - IT News Online - November 27th, 2020
- The 37 Best Black Friday Smart Home and Kitchen Deals (2020) - WIRED - November 27th, 2020
- The Joylessness of Cooking - The New Yorker - November 27th, 2020
- The Big Bang Theory: 10 Hidden Details About Penny That Everyone Missed - Screen Rant - November 26th, 2020
- Hitman 3 Reveals A New Location With Chongqing, China - Bleeding Cool News - November 25th, 2020
- Conte and Zidane remain best of friends ahead of San Siro reunion - MSN UK - November 25th, 2020
- AMD Ryzen 5 5600X Review: The Mainstream Knockout - Tom's Hardware - November 24th, 2020
- What's Next In AI, Chips And Masks - SemiEngineering - November 20th, 2020
- NFL Week 11: Picks and preview - Yardbarker - November 20th, 2020
- 2020 NBA Draft: Sam Vecenie's likes and dislikes - The Athletic - November 20th, 2020
- We have free android games and apps Birmingham Alive - Birmingham Alive - November 18th, 2020
- Remembering When the Memories Are No Longer Our Own - War on the Rocks - November 12th, 2020
- How To Learn Chess By Yourself: Best Apps And More - Goosed.ie - November 10th, 2020
- So Beats Abdusattorov In Speed Chess Match - Chess.com - November 10th, 2020
- Truss the process: How the Ravens turned a strange week into their biggest win of the season - Baltimore Sun - November 10th, 2020
- 2020 European MotoGP Results and News - Cycle News - November 10th, 2020
- Star Renegades Will Be Coming To Consoles Later This Month - Bleeding Cool News - November 10th, 2020
- Why a great teacher can make all the difference - Blogdottv - November 10th, 2020
- How Disney Helped Fans Live Their Star Wars Stories - Theme Park Insider - November 8th, 2020
- Artificial intelligence, the reality behind the runaway - Pledge Times - November 8th, 2020
- 8 Comments on Bugatti Bolide's Claimed Nurburing Time Isn't Real... - The Truth About Cars - October 30th, 2020
- What happened at the Badger Fire? - Times-News - October 30th, 2020
- Red Bull hopes 'Balance of Performance' plan will win rivals over to engine freeze - RaceFans - October 28th, 2020
- Rybka - Wikipedia - October 28th, 2020
- What the hell is reinforcement learning and how does it work? - The Next Web - October 28th, 2020
- How the new diversity is transforming science fictions future - Polygon - October 28th, 2020
- Low-flying helicopters to measure radiation levels in DC before inauguration | TheHill - The Hill - October 23rd, 2020
- Derrick Henry isnt the only challenge for the Steelers in Nashville - Behind the Steel Curtain - October 23rd, 2020
- The Rise of the Machines: Where Does the Person Stop and the Machine Start? - CIO Applications - October 21st, 2020
- National Stock Exchange of Australia to Launch Automated Trading Blockchain... - Coinspeaker - October 21st, 2020
- When 3 is greater than 5 - Chessbase News - October 19th, 2020
- The Analogue Duo Retro System Will Launch Sometime In 2021 - Bleeding Cool News - October 19th, 2020
- NHTSA Launching Investigation Into Chevy Bolt Fires - The Truth About Cars - October 16th, 2020
- Chess Engines Collection Download - OuefCafe.info - October 11th, 2020
- Engines - Chessprogramming wiki - October 11th, 2020
- Unreal Engine will power the Hummer EV's infotainment display - Sports Grind Entertainment - October 8th, 2020
- Jos: Time for Red Bull to produce a championship-winning car - Grand Prix 247 - October 8th, 2020
- Norway Chess: Caruana and Firouzja get off to a good start - Chessbase News - October 7th, 2020
- Belltower: Outlawing the internal combustion engine - Mountain Democrat - October 3rd, 2020
- Netmarble Announces An Original Mobile Title With A3: Still Alive - Bleeding Cool News - October 1st, 2020
- The F-35 in the Way Ahead for USMC-US Navy Integration - Second Line of Defense - September 30th, 2020
- Apple Vs. Epics First Hearing Takes Place, Judge Recommends Jury Trial for July 2021 - mxdwn.com - September 30th, 2020
- 15 Games Like Among Us That Will Test Your Wits - KeenGamer News - September 28th, 2020
- Digital Inclusion: What Does It Bring To The Future Of Connected Vehicles? - ISBuzz News - September 24th, 2020
- CanPL.ca's Best of the second group stage and CPL Final at The Island Games - Canadian Premier League - September 22nd, 2020
- Smart Money Podcast: Used Cars in Short Supply, and Shea Coule Talks About Money - Morton Times-News - September 22nd, 2020
- Revved up: How FCA and an army of contractors raced against time to put together 1st new assembly plant in Detroit in 3 decades - Crain's Detroit... - September 20th, 2020
- T-Bones waiting for the all-clear to open - Wicked Local Plymouth - September 19th, 2020
- Changing the rules - Spectator.co.uk - September 19th, 2020
- Cyan Reveals They're Developing The Game Myst For VR - Bleeding Cool News - September 19th, 2020
- Carlsen Connects on Day 2 of Rapid and Blitz - uschess.org - September 19th, 2020
- California's Butte County has been ravaged by wildfires. One man's rescue shows the depth of the fight - San Francisco Chronicle - September 19th, 2020
- The Football GM: Ranking the running backs signed to new contracts - The Athletic - September 16th, 2020
- Is Creativity Dying in Sports? - NYU Washington Square News - September 15th, 2020