Around 150 of the 880 stores in the U.S. Cadillac dealer network will take advantage of a buyout proposal offered by Cadillac parent company, General Motors.
According to the Wall Street Journal, the acceptance rate for the offer is about 17 percent, representing one in every six dealers agreeing to the buyout.
As Cadillac Society previously reported, Cadillac dealers unwilling to be part of the luxury marque’s upcoming move to electric vehicles have been offered at least $300,000 to be bought out. The shift will require dealers to invest around $200,000 in new tooling, employee training and the installation of EV charging stations. In some cases, this amount might represent several years’ worth of new car sales profit for low-volume stores.
The buyout offer had been expected to appeal not only to those low-volume outlets but also to any Cadillac dealer based in a rural area, where the uptake of electric vehicles will likely be slower than in city locations.
Although Cadillac has no EV models on sale at present, Cadillac Society estimates that half of the vehicles in the marque’s lineup will be fully electric as soon as 2025. The first will be the Lyriq crossover, which is due to go on sale in the first quarter of 2022, nine months ahead of schedule.
It will be followed by two more crossovers, probably named Optiq and Symboliq, and then by an electric version of the fifth-generation Escalade with a projected range of 400 miles.
The Escalade EV will likely be followed by a “low-roof” model about which little is known except that it might be a cross between a sedan and a coupe-like crossover. The list of electric Cadillacs available within five years will be completed by a full-size flagship sedan called Celestiq, whose starting price is expected to be at least $200,000.
|ICE / BEV||2021 MY ICE||2021 MY BEV||2025 MY ICE||2025 MY BEV|
|Cadillac Full-Size EV SUV||BEV||x|
|Cadillac Optiq (CUV)||BEV||x|
|Cadillac Symboliq (CUV)||BEV||x|
|Cadillac Low-Roof EV||BEV||x|
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“According to the Wall Street Journal, the acceptance rate for the offer is about 17 percent, representing one in every six dealers agreeing to the buyout.”
150 is about 17% of all dealers in the US (880). Does this mean Cadillac is offering to buy out ALL dealers? Have I figured wrong?
From what I’ve read – you are correct…. I wonder if Machete Mary Barra would get a clue if…. 100% of the Cadillac dealers would take the $300,000 and exit….. Sorry, just having fun here.
The Escalade is an exceptional product.
Cadillac is offering to buy out each of the 880 dealers.
Wow. Thanks for clarifying.
Even so, I wonder if GM was hoping for a higher take-rate. This still leaves Cadillac with about twice the number of dealers than the competition.
Carol Suzanne Butler
Don’t forget to add fossil fuel powered generators when the electricity goes out🤣
When you just ask dealers to buyout, and they take it. There is a serious problem. How many dealerships will be in business in the next five years after the all electric comes out? I believe GM is making a big mistake and not doing like Honda. Hydrogen cars would be better, and what I have read GM isn’t going that way. I think Cadillac will go out of business. And GM? Hydrogen cars, would be similar to gasoline, you fill it up.And go as far. The problem is where is hydrogen stations, and the cost now for hydrogen. And colder climates. I think GM should go both directions. But what will the price of these electric for Cadillacs, when Tesla will have cheaper cars.And others like VW, Audi,
I would definitely hate to see the local Chev/Cad dealer drop Cadillac. I know that “our” dealer can’t keep a truck on the lot but can’t sell a sedan for love nor money. We all know that EVs are coming on strong but our local area has charging stations going in as fast as they can be built. I live in a Central Washington of 1200/1500 people and there’s a charging station in construction right now. If GM can keep building good performing vehicles they’ll always have decent sales. People change the type of vehicle they buy about every two to three years.(Probably more like three to four years with the prices up as high as they are.) At any rate, if the “bean counters” don’t get to rule, maybe we’ll be OK!
For instance I’ve got a ’19 Cad XT4 which is a really nice car except for it’s lack of HP. It needs about 300 HP rather than the 237 HP it has. I’ll bet that’s the “bean counters” in action again.
The XT4 compares very well to its competition with 237 hp and a base price of $35k.
The Audi Q3 offers only 184 hp standard for base $34k. Optional to 228 at a base price of $37k.
Mercedes GLA comes standard with 221 hp at $36k base. There is an AMG version though with 302 hp but the base is $47k! That’s a $135.80 premium PER HORSE.
The Lincoln Corsair is good at 250 hp.
Lexus UX is the weakest at 169 hp optional to 181. Also the lowest base at $33k. Even the NX, starting at $37k has 235 hp.
The BMW X1 offers 228 hp at about the same base price as the Cadillac.
Those the ones I looked at.
It seems most of Cadillacs competition suffers from “Beancounters” even more.
I’ve asked you this before: If you’re unhappy with the power output of the XT4s engine, why did you buy one? You could have gotten your 300 hp from Mercedes (at $48k +).
When I bought my ELR in 2014, is Cadillac using good common sense? Where is input from the buying public? Will Cadillac be another tombstone like, Olds, Pontiac, that I have owned. Price is the main thing, and will people buy Cadillacs when Tesla and others will eat their lunch. The only reason I can say battery cars will have to be in the the range of 600 miles, or hydrogen cars that are priced right and hydrogen fuel be priced in the neighborhood of gasoline. I see things in GM not making the correct decisions. If you make cars that are overpriced, and without the buyers to buy them. Just ask past Cadillacs buyers what they think.In my ELR you used no sense, overprice, and Cadillac has no reason to improve it. Now you’re behind the game, And one in six dealers want out. With batteries you have problems like the cold, losing charging range. Will your charging range leave you stuck on the highway. But losing dealerships is just the start, these electric cars will be harder to sell, and what will the people that repair gasoline motors do? Dealers will lose more than you think like the maintenance on the cars will drop.
I would like to know the future electric cars, what are their prices? If you can’t price them right, you will run into a auto that will be price out of the market. I would like to know the prices of each of these electrics. How many want to pay $200,000 for a car?
The appropriate question you should ask is how many people with a net worth of 8 figures and above are willing to pay $200k for a vehicle alternative to the RR/Bentley.
I expect the EV models will be price competitively while the flagships/halos are on a different level in terms of luxury, image and aura w/ out-0f-reach pricing.