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Cadillac will close many dealerships in the U.S.

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Cadillac will close many dealerships in the U.S.

Electric vehicles are the future and to make them or sell them modifications are required. Automakers are changing their manufacturing plants for the production of new EVs dealers have to do the same for storing and servicing of EVs. Cadillac is one of the automakers aiming for this big change as it’s part of the plan the whole inventory will go electric by 2025 and is looking forward to all the changes required.


A while ago we heard that Cadillac is investing $200,000 in the dealer network to sell the EV, adding charging stations, new tools, and technician training. EVs are still a tiny portion of the U.S. automobile market so, not all dealerships are happy about this change. So, Cadillac offers dealer owners a buyout for an option instead of making upgrades, and as we have heard many dealers have taken this offer.

Cadillac operated over 1,400 dealerships before GM bankruptcy in 2008 and as of January 1, 2020, Cadillac operates 882 dealerships including 153 Cadillac-only showrooms. Cadillac sells 150,000 vehicles per year in the U.S. and an average dealer sells fewer than 180 vehicles per year. If the buyout reports are accurate then one of the five Cadillac dealerships will close by the end of 2021. This closeout will cut down the Cadillac dealer network to 705 showrooms.

Most of the dealerships that have opted for the buyout are located in smaller markets where EV sales are not expected less. For the larger market, Cadillac is investing millions, if the larger market showrooms sell other GM brand also then it the change will be beneficial of them as Cadillac Lyriq, Chevrolet Bolt EUV and GMC Hummer EV are coming soon.

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