Curbside Newsstand: Cadillac’s Transition To 100% EV’s May Be The End Of Some Dealers

In case you’ve been asleep behind the wheel of your Autopilot-equipped Tesla, Cadillac plans to be a 100% EV brand. Smaller and rural Cadillac dealers are already shocked to find out that unless they pony up at least $200,000 for EV charging infrastructure, tools and training, they may lose their franchise after 2022, as they’ll have nothing else to sell.

From an AN article:

The luxury brand is requiring U.S. dealers who want to keep their franchises after 2022 to spend at least $200,000 installing chargers, buying special tooling and training employees to handle a lineup that’s planned to be fully electric within a decade. Cadillac officials and top dealers believe that’s a worthwhile investment to give customers a first-class experience, but they acknowledge it could be too much for retailers that don’t have enough volume to recoup those costs in a reasonable period of time.

“There may be a few dealers that don’t necessarily share the Cadillac vision,” Rory Harvey, Cadillac’s vice president of sales, service and marketing, told Automotive News last week. “We believe that most dealers will.”

Harvey communicated the requirements for Cadillac’s 880 U.S. dealers to maintain their franchise beyond the arrival of the Lyriq electric crossover in late 2022 in a video last week. In an interview, he said $200,000 would be the “entry ticket cost,” with expenses potentially rising beyond that as more EVs debut and sales volumes increase.

It hits Cadillac dealers extra-hard, as GM expects to fully phase out everything but EVs for Cadillac, sometime around or before 2030. Meanwhile other GM dealers have a choice, as they will still have IC vehicles to sell if they choose not to sell the coming range of EVs.  So far one-half of GMC dealers have opted to pony up to sell the upcoming Hummer EV pickup.