In April, Cadillac announced plans for an all-electric lineup. The luxury brand plans to stop selling ICE vehicles by 2030. Last year, many dealers bailed out the Michigan-based company when it began requiring dealers to invest in a future EV. . But as some have left, Cadillac has gained new groups of dealers who intend to bring the brand back to the key markets it lacks.
According to a Automotive News report, 150 Cadillac dealers last year accepted Cadillac buyouts totaling between $ 300,000 and over $ 500,000. Dealers who have stayed with Cadillac must invest an average of $ 200,000 in electric charging stations, new tools and training.
Luckily for Cadillac, some dealerships don’t have issues with the brand’s all-electric future and plan to sell the company’s products. The report says eight dealer groups have made deals to open Cadillac stores this year. “Recent agreements include acquisitions by Frank Kent Motor Co. and Ken Garff Automotive Group in Texas and by Ciocca Dealerships in Atlantic City, NJ”
One notable market Cadillac is returning to is Beverly Hills, California. The affluent city is located near downtown Los Angeles, but more importantly, it hasn’t had a Cadillac dealership for 35 years. Bruce Axelson of Capital Automotive Group, based in Canada, won the opening rights to Cadillac of Beverly Hills and Cadillac of South San Francisco.
Mahmoud Samara, vice president of Cadillac North America, said Automotive News that the company is working to open a dealership in Manhattan. The only Cadillac dealership in this crucial market closed last year.
San José is another key market due to the popularity of electric vehicles in the region and many luxury brands have high volume dealers there. The Dosanjh Family Auto Group will be opening a Cadillac dealership near one of its Chevrolet stores, which happens to be the largest Bolt EV dealership in the country.
Frank Kent Motor Co. made a buyout to close a Cadillac dealership in Corsicana, Texas. The dealership is now opening a $ 20 million Cadillac dealership in Arlington, Texas, and currently has a Cadillac location in Fort Worth.
Will Churchill, one of the group’s owners, says there’s a lot of excitement surrounding the Cadillac Lyriq, the brand’s all-new electric SUV. He said:
“Of all the vehicles we’ve launched, aside from the Escalade, this one seems to have received the most positive reception earlier,” he said. “So it’s exciting to see how that is going to correlate to sales.”
It’s no surprise that Cadillac has lost so many dealerships. Electric vehicle sales in much of the United States are still very low and are unlikely to increase much in the near future, especially in rural parts of the country and in areas where electric vehicles have yet to. gained a foothold. But on the other end of the spectrum, there are groups of dealers who have jumped on the electric vehicle bandwagon and are ready to try their luck on a long-standing luxury brand with recent and huge vehicle commitments. electric.