Cadillac has told its dealerships across the United States to invest at least $200,000 each in order to get ready for the car manufacturer’s fleet of upcoming electric vehicles.
The automaker recently unveiled its first all-electric vehicle in the form of the Lyriq show car and, while it won’t hit the market until 2022, it will be followed up by a range of other EVs as Cadillac prepares to have an all-electric lineup by the end of the decade.
Speaking with Auto News, vice president of Cadillac sales, service and marketing, Rory Harvey, revealed that charging stations make up the majority of the $200,000 figure. He added that high-volume dealers might need to spend more than that and that expenses could increase as the brand’s range of EVs expands. The sum will also cover new tooling and training.
“Now’s really the time to start engaging with our dealers in preparation for that,” Harvey added. “There’s a lot of planning that has to be put in place to make sure they’re absolutely ready.”
Cadillac worked with its dealer council to develop the new investment requirements which will be integrated into the brand’s new franchise agreement that must be adhered to by all dealerships when signed on November 1. With that being said, dealers who are unable to invest the required $200,000 could remain with the automaker, but their future will have to be discussed with brand officials. Harvey added that dealers can spread out the expenses and simply need to ensure all necessary upgrades are done by the fourth quarter of 2022.
This comes just a week after GM started asking non-Cadillac dealerships to spend between $120,000 and $200,000 each for their own electric vehicle upgrades.