About 150 Cadillac dealers take GM buyouts rather than investing in EVs

General Motors released this teaser image of the Cadillac Christ published on the front of the lyric before the start of the crossover.


DETROIT – About 150 General Motors dealers have accepted the buyout and the Detroit automaker is pushing the luxury brand to pull off all its electric vehicle efforts, as a person familiar with the details confirmed to CNBC.

GMA recently told its 880 U.S. Cadillac dealers that it would cost at least ,000 200,000 to upgrade the dealership to sell its next EV. Expenses include EV chargers, tooling and training. Such capital expenditures are generally seen as part of the business of large dealers, but for smaller dealers it can be challenging, given that Cadillac is higher across the country than other luxury brands.

G.M. By his E.V. The most recent sign of accelerating efforts is the રોકાણ 27 billion investment in all-electric and autonomous vehicles by 2025. The investment, in addition to the 20 20 billion announced earlier this year, is expected to produce 30 new EVs globally by 2025, including more than 20 for North America alone.

“This forward product said Faring needs to be paired with an exceptional customer experience,” GMA said in an email statement. “Future merchant requirements are a logical and necessary next step on our path to electrification to ensure that our dealers are ready to provide customers with an exceptional experience.”

GM expects to sell the majority, if not all, of its Cadillac cars and SUVs as all-electric vehicles by 2030.

David Butler, chairman of Cadillac’s National Business Committee, said G.M. The Leadership Board suggested a buyout for DVs who have opted out of the agreement with those who do not wish to participate in the EV investment.

“We suggest something suitable for the fur dealers,” he told CNBC, citing previous purchases in 2016 that failed to attract many Cadillac dealers.

The Friday Street Journal, which reported the number of dealers who took the buyouts on the first Friday, said GM’s buyout offers range from about 000 300,000 to more than 1 1 million. Buyouts were largely based on sales and varied depending on the size of the dealership, according to the company.

About 150 dealers who accepted the buyout were told by Cadillac’s U.S. Represents about 17% in dealerships. Dealers had until Nov. 30 to make a decision on the buyout, according to Automotive News, which first reported the furs last week.