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Almost one fifth of Cadillac dealerships bail on brand's electric future
Viknesh Vijayenthiran
SEPTEMBER 13, 2021
motorauthority.com

General Motors is betting big on battery-electric vehicles, and its Cadillac brand has been tasked with spearheading their rollout.

The automaker has already revealed the 2023 Cadillac Lyriq crossover due in early 2022 and confirmed four additional EVs for the luxury brand, including a flagship sedan dubbed the Celestiq. Cadillac could even become a full-EV brand by 2030 depending how the market evolves.

Naturally, GM wants Cadillac dealerships to get on board—which means they'll need to spend big to upgrade their facilities with charging, tooling and training for EVs. We're talking around $200,000 on average.

For those dealers not keen on the transformation, GM last fall offered cash incentives to close up shop. Automotive News (subscription required) reported on Monday that approximately 150 dealers accepted the cash offers which ranged from $300,000 to more than $500,000. The number equates to about 17% of Cadillac's 880 dealerships in the U.S.

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A new take of what We've already heard, and I think it will be interesting going forward if the thinning of "the herd" continues.
 

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That's fine...there are/were too many Cadillac Dealerships in the US anyway. Cadillac's by dealership sales numbes per month was something abysmal like 5 units per month.

Edit: my bad...was thinking about their sedan sales volume...its about 14 units per month per dealer.
 

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Almost one fifth of Cadillac dealerships bail on brand's electric future
Viknesh Vijayenthiran
SEPTEMBER 13, 2021
motorauthority.com

General Motors is betting big on battery-electric vehicles, and its Cadillac brand has been tasked with spearheading their rollout.

The automaker has already revealed the 2023 Cadillac Lyriq crossover due in early 2022 and confirmed four additional EVs for the luxury brand, including a flagship sedan dubbed the Celestiq. Cadillac could even become a full-EV brand by 2030 depending how the market evolves.

Naturally, GM wants Cadillac dealerships to get on board—which means they'll need to spend big to upgrade their facilities with charging, tooling and training for EVs. We're talking around $200,000 on average.

For those dealers not keen on the transformation, GM last fall offered cash incentives to close up shop. Automotive News (subscription required) reported on Monday that approximately 150 dealers accepted the cash offers which ranged from $300,000 to more than $500,000. The number equates to about 17% of Cadillac's 880 dealerships in the U.S.

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If they don't want to sale Cadillac's then let them move on.
 

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nadepalma, the motorauthority.com link in your post goes to an article about Apple. 😃 I think you meant to use this link:
LOL. Yeah.
I still don't know what the hell Apple is doing. This is gonna be a multi-million dollar failure on this "car project."
All they have to do is buy Lucid... and they're done.
 

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Apple, the car that spies on you! And burns your garage down. Looks promising.
 

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That's fine...there are/were too many Cadillac Dealerships in the US anyway. Cadillac's by dealership sales numbes per month was something abysmal like 5 units per month.

Edit: my bad...was thinking about their sedan sales volume...its about 14 units per month per dealer.
I also bet the ones that "bailed" are not the top performers and selling 1.2 vehicles a month does NOT "pay the rent"
 

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That's fine...there are/were too many Cadillac Dealerships in the US anyway. Cadillac's by dealership sales numbes per month was something abysmal like 5 units per month.

Edit: my bad...was thinking about their sedan sales volume...its about 14 units per month per dealer.
They could close 1/3 of their dealerships and lose barely any sales.....

Exactly. This the kick out the door that Cadillac/GM has been trying to do for over a decade.
There are simply too many Cadillac dealerships with varying degrees of service level, dealership quality, etc.
JdN pushed hard for that. If you don't have adequate facilities/sales/service, you don't get to be a Cadillac Dealership. Standards.

I still don't know what the hell Apple is doing. This is gonna be a multi-million dollar failure on this "car project."
All they have to do is buy Lucid... and they're done.
Their internal project is looking more and more like a boondoggle.

Agreed with that.Why they wouldn't at least buy an interest in it and work with them on the software is a little curious.

I also bet the ones that "bailed" are not the top performers and selling 1.2 vehicles a month does NOT "pay the rent"
Yeah, most small time Cadillac dealerships mostly get by selling used vehicles. Selling a handful of new Cadillacs a year doesn't justify the shortcomings. Most of them should be Buick/GMC dealerships anyway.
 

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While GM has lost many of its Cadillac dealerships, particularly in rural areas, it's gaining new ones in areas where the brand doesn't have a strong presence, such as Silicon Valley, or in areas ceded to rival brands, such as Beverly Hills and Manhattan. Some successful Cadillac dealership networks are also purchasing some of the rival stores that are closing.
Don't know how many this is, but definitely the key part that gets lost in the headline.

One thing that puzzles me is that all of these dealers can't be stand alone Cadillac dealers, I presume many are paired with other GM brands. Cadillac might be going all electric a little earlier than GM's other brands, but GM has stated they are going all electric. Meaning these dealers will need to "electrify" at some point. Why not get started now? It's got to all be the same equipment, meaning this Cadillac equipment is really Ultium equipment that'll be needed to service an Ultium Chevy. My only thought is these dealers sell so few Cadillac's that $500k is more profit than they'll make in selling Cadillac's for the next 10 years, so makes sense to take the money and install the Ultium equipment when they need it to service Chevy's and GMC's.
 

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That's fine...there are/were too many Cadillac Dealerships in the US anyway. Cadillac's by dealership sales numbes per month was something abysmal like 5 units per month.

Edit: my bad...was thinking about their sedan sales volume...its about 14 units per month per dealer.
5 units per month, isn't the Dealer's fault. It is the Products Fault. If there is only 1 or 2 Exciting Products in a Line, and those are hard to get, that means that Dealers would be held Ransom for them

Example, "This is how many CT4's you will have to take, to get 1 Escalade"
 

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They're probably paired with Chevrolet, Buick and GMC anyway in some small backwoods town anyway, that 500k is a bump for them. Then after they stop selling Cadillacs because they've gone full EV, what are tehy going to do when they have to switch over to EV to support the other GM brands as they crossover to full EV lineups...will they be allowed to double dip?
 

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Don't know how many this is, but definitely the key part that gets lost in the headline.

One thing that puzzles me is that all of these dealers can't be stand alone Cadillac dealers, I presume many are paired with other GM brands. Cadillac might be going all electric a little earlier than GM's other brands, but GM has stated they are going all electric. Meaning these dealers will need to "electrify" at some point. Why not get started now? It's got to all be the same equipment, meaning this Cadillac equipment is really Ultium equipment that'll be needed to service an Ultium Chevy. My only thought is these dealers sell so few Cadillac's that $500k is more profit than they'll make in selling Cadillac's for the next 10 years, so makes sense to take the money and install the Ultium equipment when they need it to service Chevy's and GMC's.
I bought my first KIA at a KIA-Cadillac dealer in Idaho. Is KIA a GM brand? Asking for a friend, her name is Mary but don't tell a soul. This is our little secret.
 
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I bought my first KIA at a KIA-Cadillac dealer in Idaho. Is KIA a GM brand? Asking for a friend, her name is Mary but don't tell a soul. This is our little secret.
I don't understand the point, you are telling me all of these are dealers not affiliated with other GM brands?
 

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I don't understand the point, you are telling me all of these are dealers not affiliated with other GM brands?
That one wasn't.

Can we tell your Soul, the Kia one that is :rolleyes: .
I will have to ask my Extra Very Speshul Secret Friend Mary. Let me get back to you on that!
 
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They could close 1/3 of their dealerships and lose barely any sales.....
Even worse, there are probably still some Cadillac dealerships out there that share the sales floor with Chevy or GMC or Buick. That's just as bad for Cadillac.

JdN pushed hard for that. If you don't have adequate facilities/sales/service, you don't get to be a Cadillac Dealership. Standards.
Yes. Standards need to be held at Cadillac. Hopefully losing all these dealerships will allow Cadillac to be more focused on selling their cars and their brand to their customers.


Their internal project is looking more and more like a boondoggle.
Agreed with that.Why they wouldn't at least buy an interest in it and work with them on the software is a little curious.
We don't really know what this "Apple Car" project is supposed to be. All we know is that there are rumors. The rest is media interpretation and guesswork.
Apple, for years, has dabbled in car design and interface, whether it's designing the JaguarDrive shifter knob, or working with BMW on a car audio interface and remote key access, or working on CarPlay, or AppleMaps, or autonomous drive technology.

Apple's idea has been to always tie the car into the iPhone. And to a point, it was worked. You no longer need a nav system and on board telematics and audio.... just your iPhone that connects via USB or Bluetooth, and all the key apps appear on your car's screen.
My guess is that they want to take it to the next level. But they don't want to build the necessary infrastructure or control the manufacturing, much the same way they don't control iPhone or computer manufacturing. Everything is at arm's length.

In my mind, they can't have a 3rd party build a car for them. They want a relationship with a manufacturer like Magna Steyr to build it. But there is no sense in doing that, that car companies who contract it out to Magna, are low volume models. I'd expect Apple wants higher volume.

2 acquisitions that would make sense for Apple: JLR or Lucid.
Both are premium car brands and operate a low/lower volumes. Both have technology that is complementary to what Apple is doing now with their AppleCar project (autonomous driving, mapping, connected car technology). Both have factories. Both are design centric. Both need deep deep deep pockets to survive. It shouldn't take too long to update/upgrade the technology to in-house Apple tech. And both can benefit from the Silicon Valley development speed and iteration.[/QUOTE]
 
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