According to a statement by Mahmoud Samara, vice president of Cadillac North America (via Automotive News), Cadillac is asking any registered dealership to invest a minimum of $200,00 on electric vehicle charging, maintenance tools, and professional training. If the dealers decline they will have to shut down, to which the brand is offering a cash severance.
"We wanted to move fast and make sure dealers are ready for the acceleration. This is purely an option for those dealers who feel the EV journey is not suitable for them."
The brand has been leaning hard into electrification lately, developing the Lyriq crossover SUV (marked for early 2022) and announcing an upcoming flagship sedan. Based on their recent behavior, they could become a fully electric brand in the next 10 years.
This also resonates with past statements by the brand, expressing a desire to reduce the overall number of Cadillac dealerships. In 2018, they offered a similar shutdown stimulation. We can absolutely imagine this new move will help reduce numbers further.
Auto dealerships have a pretty valid reason to not want to invest in electric vehicles. EVs generally last longer and require less maintenance. This can result in reduced revenue for dealerships in the long run. This is good for consumers, though, so it's hard to sympathize with them on this matter.
Either way, if you’re wanting a Cadillac in the future, we hope you don’t mind it being electric.