Cadillac making charger investment mandatory for dealers

According to an Automotive News report, Cadillac will require dealerships to install charging stations as part of its move to an “all-electric” future and in preparation for the launch of multiple all-electric models. 

The price of upgrades for the transition to EVs is estimated at $200,000 per dealership. Dealerships have been asked to install charging stations and invest in other EV-specific items in the past, but it is now expected to be mandatory for all dealerships wishing to stay with the brand.

Rory Harvey, vice president of Cadillac sales, service, and marketing, stated that “dealers who don’t think an investment of that size makes sense for their business could remain with Cadillac beyond November 1, but their future would be subject to discussions with brand officials.”

Cadillac reportedly consulted its dealer council before instituting the requirement, which includes specialized employee training and tools needed to sell and service electric cars. According to the industry trade journal report, some dealers — especially those in rural areas where EVs are in low demand — have balked at the money GM has asked them to spend. Some opted out of selling electric models if they felt the return on investment would not be sufficient. 

However, with Cadillac’s new direction, opting-out may not be an option. The company is transitioning to mostly fully-electric vehicles by 2030, which leaves few options for dealerships who only want to continue selling gasoline models. The first of the confirmed electric models will be the Lyriq crossover, due in 2022. Cadillac has hinted that an all-electric alternative to the popular— and profitable — Escalade will be part of that future plan.

Photo : Cadillac