Photo: Cadillac
Better late than never, General Motors decided to go all in on EVs. No fewer than 30 electric vehicles will roll out by 2025, including two all-electric pickup trucks twinned with the half-ton Silverado and Sierra.
Cadillac is expected to drop internal combustion as a result of this change of heart, and I’m not surprised. In addition to the Lyriq sport utility vehicle and Celestiq sedan, the crown jewel of General Motors is gearing up for a full-size SUV (the Escalade EV), crossovers, and low-roof entries. In other words, at least five models with all-electric propulsion will launch by 2025.
Cadillac isn’t beating around the bush either. Late last month, the luxury automaker gave an ultimatum to U.S. dealerships. To make a long story short, 880 dealers had to make a choice between $200,000 in mandated upgrades for EVs and a lot of money to cancel the franchise with Cadillac.
17 percent of them said no to electric vehicles, which means that 150 dealers opted for the buyout. The Wall Street Journal reports severance offers ranging from “$300,000 to more than $1 million,” which is a lot of money when you add all of those numbers up. Most of the dealers who don’t believe in EVs won’t disappear, though, because they sell at least two GM brands.
Chevrolet continues to be the golden goose of the biggest of the Big Three in Detroit, and GMC isn’t doing too bad of a job either in North America. Buick, which has dropped traditional body styles in favor of SUVs, also turns a bigger profit than it did when the LaCrosse and Regal were in production.
Turning our attention back to Cadillac dealers, saying no to EVs has a deeper meaning than just severance money. According to the Wall Street Journal, “even as investors bid up the value of electric vehicles, questions persist about interest among consumers and the retailers who serve them.”
GM also has to remember how much its EVs cost. The all-new Lyriq from Caddy, for example, will start at less than $60,000 while the Tesla Model Y Long Range can be yours from $49,990 excluding potential savings.
The GMC-branded Hummer, by comparison, will be available from $112,595 in the first year of production. Come 2024, the entry-level specification for the U.S. market will start from $79,995. Given these details, I think we can all agree that many people won't switch to GM EVs because those price points are too prohibitive in comparison to what the competition has to offer.
Cadillac isn’t beating around the bush either. Late last month, the luxury automaker gave an ultimatum to U.S. dealerships. To make a long story short, 880 dealers had to make a choice between $200,000 in mandated upgrades for EVs and a lot of money to cancel the franchise with Cadillac.
17 percent of them said no to electric vehicles, which means that 150 dealers opted for the buyout. The Wall Street Journal reports severance offers ranging from “$300,000 to more than $1 million,” which is a lot of money when you add all of those numbers up. Most of the dealers who don’t believe in EVs won’t disappear, though, because they sell at least two GM brands.
Chevrolet continues to be the golden goose of the biggest of the Big Three in Detroit, and GMC isn’t doing too bad of a job either in North America. Buick, which has dropped traditional body styles in favor of SUVs, also turns a bigger profit than it did when the LaCrosse and Regal were in production.
Turning our attention back to Cadillac dealers, saying no to EVs has a deeper meaning than just severance money. According to the Wall Street Journal, “even as investors bid up the value of electric vehicles, questions persist about interest among consumers and the retailers who serve them.”
GM also has to remember how much its EVs cost. The all-new Lyriq from Caddy, for example, will start at less than $60,000 while the Tesla Model Y Long Range can be yours from $49,990 excluding potential savings.
The GMC-branded Hummer, by comparison, will be available from $112,595 in the first year of production. Come 2024, the entry-level specification for the U.S. market will start from $79,995. Given these details, I think we can all agree that many people won't switch to GM EVs because those price points are too prohibitive in comparison to what the competition has to offer.
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