GM Offering Cadillac Dealers Up to $500,000 if They Opt Out of EV Transformation
Caddy dealers disinterested in the switch to electric can get out now.
Most, if not all, new Cadillacs around the world will be electric within the next 10 years. No doubt, this will be a huge transition for a brand that currently sells no EVs, and recognizing this reality, General Motors is reportedly offering to buy out dealers who don't want to invest in the ambitious transformation plan.
According to Automotive News, the buyouts range from $300,000 to $500,000 per dealer. It won't be the first time Cadillac tries to trim its dealership network, but this is quite a large sum of money on offer. Dealers have until the end of November to accept the money.
"We wanted to move fast and make sure dealers are ready for the acceleration," Mahmoud Samara, vice president of Cadillac North America, told the publication. "This is purely an option for those dealers who feel the EV journey is not suitable for them."
Earlier this month, GM announced it will increase its planned EV budget. Now, it will invest more than $27 billion in electric and autonomous cars through 2025. The automaker plans to launch 30 all-electric vehicles globally across its brands, including Cadillac, GMC, Chevrolet, and Buick by that year. More than two-thirds of these EVs will be available in North America. Notable entries will include the GMC Hummer electric pickup and the upcoming SUV version of the Chevrolet Bolt. When it comes to Cadillac, look for the new dramatically styled Lyriq SUV to arrive in 2022.
To achieve its ambitious goals, GM has created a new architecture for electric vehicles. Also, its Ultium battery system offers up to 450 miles of range on a single charge. It can be configured in 19 different ways to accommodate a range of front-, rear-, and all-wheel drive models across a variety of segments. By dramatically reducing battery costs on its second-gen Ultium system by mid-decade, GM hopes to bring prices closer to gasoline vehicles.