Cadillac to expel stores that refuse to sell electric car

Committed to making Cadillac a fully electric brand by the end of the current decade, GM has noticed some internal resistance and is giving its dealerships an ultimatum: they have until November 30 to decide whether to accept investing at least $ 200,000 (R $ 1.08 million) in electrification or they should simply leave the franchise.

Just a few days after announcing a series of investments and ambitious goals, the North American giant seems to be convinced that, in addition to being a matter of survival, the transition to electric vehicle trade involves convincing resellers, as these are the responsible for delivering the products to the final consumer.

GM is adopting these measures based on a 2018 study published in the journal Nature Energy, in which researchers from Denmark and England concluded that the adoption of electric cars has been slowed by the dealerships themselves who prove to be “contemptuous and misleading” about the subject matter.

A generous ultimatum

According to the Automotive News newspaper, which revealed details of the ultimatum on Monday (23), GM is willing to offer dealers who do not wish to make the investment to sell electric vehicles, especially the Cadillac, a $ 500,000 indemnity, or R $ 2.7 million, to leave the franchise.

Cadillac North America vice president Mahmoud Samara explained to the newspaper that the company’s goal was to act quickly to ensure that resellers were ready for acceleration. And he concluded that the measure “is purely an option for concessionaires who think that the EV journey is not suitable for them”.

According to the specialized website Electrek, the solution adopted by GM is very ingenious, because, as it needed to reduce its number of resellers (there are 800 eligible for the ultimatum), it transformed the problem into a solution, and made a bet: either the resellers invest in innovation, or leave, which will also not represent a big loss for the brand.

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