With General Motors’ plans to electrify its Cadillac lineup by the end of the decade, about 150 Cadillac dealers out 880 in the U.S. will accept buyouts from GM instead of making the upgrades to sell and service EVs, according to the Wall Street Journal. The buyouts range from $300,000 to $1 million.
Most of the dealers accepting the buyout also own one or more GM brands and only sell a small number of Cadillacs a month, not enough to spend the $200,000 needed for the upgrades.
Cadillac’s first electric model, the Lyriq, will launch in the first quarter of 2022, nine months earlier than expected. The model will be the first EV produced at its Spring Hill plant, which is being retooled with a $2 billion investment for EVs.
However, GM will not offer buyouts to GMC dealers who do not want to sell Hummer EVs, CNBC reports.
The rebirth of the Hummer as an electric model is expected in 2021 with its most expensive package, Edition 1, bowing first — for about $112,000. Other more affordable versions will follow.