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GM offers $500,000 to Cadillac dealers who want to opt out of the EV revolution
Yahoo Finance
By Greg Rasa
November 23, 2020

GM is offering $300,000-$500,000 to any Cadillac dealer who is not down with GM's ambitious plans to make Cadillac an all-electric brand. CEO Mary Barra last week outlined to investors GM's plan to accelerate the transition to EVs, increasing spending on electric and self-driving cars by 35 percent to $27 billion in the next couple of years. The Cadillac Lyriq EV's launch has been accelerated to 2022, and by 2030, Cadillac could be out of the internal-combustion engine business altogether as GM's electric standard-bearer.

That might not appeal to a dealer who doubts the business case, or who doesn't want to gear up with the infrastructure to charge or service electric cars. Meanwhile, GM has been trying to thin its pool of Cadillac dealers for years, having last tried to muster out hundreds of its lower-volume dealers in 2016 with a much smaller lure of $100,000-$180,000, but it got few bites. This time, the buyout's being offered to all 880 Cadillac dealers and might prove to be a win-win.
*Full Article at Link
 

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Good some cadillac dealers need to end their franchise.

EV charging stations should be at all dealers for consumers to recharge for free or a fee ..limited up to 80 % which should be around 20 minutes per customer.
 

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The most crucial utility an EV can’t provide is towing distances. I take it that the vast majority of Escalade owners don’t load up a travel trailer and haul long distances so utility-wise, going all electric won’t risk sales in that early phase of 100% EV. They could always cross shop a GMC Yukon Denali as well. Wonder what percent of Escalade owners load up the family and gear and drive 600-800 miles a day to their destination on family vacations? Even without a trailer that could be a challenge in an EV.
 

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The most crucial utility an EV can’t provide is towing distances. I take it that the vast majority of Escalade owners don’t load up a travel trailer and haul long distances so utility-wise, going all electric won’t risk sales in that early phase of 100% EV. They could always cross shop a GMC Yukon Denali as well. Wonder what percent of Escalade owners load up the family and gear and drive 600-800 miles a day to their destination on family vacations? Even without a trailer that could be a challenge in an EV.
True. This all electric gig is being pursued without much regard to reality in various consumer needs. I'm sure this latest offer will help weed out some more lower volume dealers, but my issue is with moderately sized communities in more rural areas of the country that may disappear leaving owners and buyers having to travel 50+ miles or so just to have things taken care of at a dealership. I use this point in reference to the area around here, my community has a well establish decent volume dealership and 50 miles to the north another dealer in a moderately sized community that doesn't do near the volume. If it goes away, all those owners and buyers in the multi county area up there will have to come down here for everything :(.
 

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You would need to see the Franchise agreement, right? Plus there is always the priceless goodwill, not that Mother Barrah has showed much respect for that lately
Not sure why they have to offer anything at all. Either get on board, sell, or give up your dealership.
That was my thought, it is the dealer choosing not to sell what Cadillac offers, so why should GM offer them money? To me it sounds like the franchise should be offering GM to opt out of the agreement. But, as Mbuk said, all down to goodwill and the franchise agreement.
 

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Not sure why they have to offer anything at all. Either get on board, sell, or give up your dealership.
You would need to see the Franchise agreement, right? Plus there is always the priceless goodwill, not that Mother Barrah has showed much respect for that lately
That was my thought, it is the dealer choosing not to sell what Cadillac offers, so why should GM offer them money? To me it sounds like the franchise should be offering GM to opt out of the agreement. But, as Mbuk said, all down to goodwill and the franchise agreement.
GM is offering Cadillac Dealers money to Opt. Out, is because Soon they won't have any Non EV Cadillacs to sell. If GM gets it's way. $500K is nothing compared to what these Dealer's have invested. And Invested to meet "GM's Cadillac Appearances". You know, all those "Must Have" showroom things, that so many on here have stated "Would make Cadillacs, Mercedes, with Mercedes Class Showrooms.

I also understand Dealer's Side, thinking "This WHOLE EV thing, will wind up like my Door of Cassette Tapes" A fad for a short period of time. $500K is like playing Russian Roulette, with a Cup Cake for who ever wins.

It's Corp. Giant saying "This is how it is going to work." "If you don't want to play, here's a quarter." "Call someone who cares."
 

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On detail of the article: "...by 2030, Cadillac could be out of the internal-combustion engine business altogether as GM's electric standard-bearer."

In other words, if this article is right Caddy will be offering ICE for at least 10 more years...way past the 2025 "deadline" for EVs. Caddy will regulate ICE/EV according to demand.
 
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Seems fairly reasonable. GM is giving dealers the 10 year plan. And if they don't like it, they can terminate with 1/2M. If you follow the link's link, the details are clearer. Accepting the deal allows you to sell thru 2021. I'd think GM might sweeten that to 2023, with the stipulation you can't sell EV's if you take it. But what they are really trying to do is cull the dealer count.
<br><br>I've never quite understood why they want to cull as it is a balance of specialness of the brand vs getting your car serviced anywhere. I tend towards the getting it serviced anywhere is the more valuable side of the equation. But I get how specialness may generate more sales than service availability.<br><br>
the big surprise to me was how little some dealers make on their caddy franchise. I imagine those dealers have to be selling other GM brands to make it a biz. Otherwise selling cars would be a hobby for them.
 

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For the most part we are talking very low volume, small market dealers who struggle (or simply decline) to meet minimum Cadillac standards of sales and service. To expect them to meet the new tech requirements of an EV world, GM would have to heavily subsidize with virtually no payback. Many such shops further devalue an already struggling luxury brand. See ya. Wouldn't wanna be ya.
 

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For the most part we are talking very low volume, small market dealers who struggle (or simply decline) to meet minimum Cadillac standards of sales and service. To expect them to meet the new tech requirements of an EV world, GM would have to heavily subsidize with virtually no payback. Many such shops further devalue an already struggling luxury brand. See ya. Wouldn't wanna be ya.
Also, many of these are already paired with another brand like GMC or Chevrolet. It's GMC for the one I was referencing above(and Chevrolet here in town).
 

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....EV charging stations should be at all dealers for consumers to recharge for free or a fee ..limited up to 80 % which should be around 20 minutes per customer.
I don't see that working. The dealer won't want to waste the space (or the money) for drivers who aren't shopping. And the drivers won't want to waste their time hanging around a dealership when they aren't shopping.

It makes much more sense for chargers to be at locations that a driver will already NEED to be at (restaurants, shopping, etc).
 

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To make BEV's work, you (that is GM) needs at least one of the following:

1. charging network: really this should be a charging network, service station, convenience store, and GM accessory store. Spending money to get rid of franchises that may enable that required component of BEV success is ridiculous.
2. home-based charging capability: Either via your local electric company or via solar panels and where available wind generation. BEVs major plus (in my opinion) is removing the requirement in most cases of "filling up" at a gas station, spending money on a cup of coffee ('cause why not), and then buying that sandwich that always fights back two hours later.

GM is doing none of this today (maybe it will later) and banking its whole success on factors that are dependent on so many other things currently out of their control.
 

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To make BEV's work, you (that is GM) needs at least one of the following:

1. charging network: really this should be a charging network, service station, convenience store, and GM accessory store. Spending money to get rid of franchises that may enable that required component of BEV success is ridiculous.
2. home-based charging capability: Either via your local electric company or via solar panels and where available wind generation. BEVs major plus (in my opinion) is removing the requirement in most cases of "filling up" at a gas station, spending money on a cup of coffee ('cause why not), and then buying that sandwich that always fights back two hours later.

GM is doing none of this today (maybe it will later) and banking its whole success on factors that are dependent on so many other things currently out of their control.
Sorry do not agree. If every manufacturer has their own proprietary network of charges, well, just will not work. There are several companies that are tackling charging, and it will not matter if you have a bmw, benz, gm, ford, ... bev. You will plug it in just like I go to shell, chevron, mobil ... gas stations. As to home charging, there already are plenty of choices in the market. Heck, my utility will help pay for it.
 

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Well, somehow I doubt this is a significant number of dealers considering they'd have to opt-out of their business entirely if they dragged their feet. They may just be looking for financial leverage like this.
 

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Sorry do not agree. If every manufacturer has their own proprietary network of charges, well, just will not work. There are several companies that are tackling charging, and it will not matter if you have a bmw, benz, gm, ford, ... bev. You will plug it in just like I go to shell, chevron, mobil ... gas stations. As to home charging, there already are plenty of choices in the market. Heck, my utility will help pay for it.
Agreed. If all the manufacturers jump in with their own entities it will just result in too many fingers or slices in the pie and everybody struggles.
 

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To make BEV's work, you (that is GM) needs at least one of the following:

1. charging network: really this should be a charging network, service station, convenience store, and GM accessory store. Spending money to get rid of franchises that may enable that required component of BEV success is ridiculous.
2. home-based charging capability: Either via your local electric company or via solar panels and where available wind generation. BEVs major plus (in my opinion) is removing the requirement in most cases of "filling up" at a gas station, spending money on a cup of coffee ('cause why not), and then buying that sandwich that always fights back two hours later.

GM is doing none of this today (maybe it will later) and banking its whole success on factors that are dependent on so many other things currently out of their control.
Car makers weren't involved in the expansion of refineries or service stations - so why do they need to be involved with electricity supply?
 

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One of the reasons i leased or bought 5 Cadillacs between 2004 and 2014 was that i could get them service or repaired even in mid size town. Our vacation home is in hendersonville NC and while there is one in Asheville 30 minutes away i still didnt need to get on i26 and deal with that unpredictable traffic. I sold the '14 SRX in '19 and bought a F150 Supercrew.
 
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