Many Cadillac dealers across the United States are eagerly awaiting the company’s transition to electrification and are investing millions of dollars on new showrooms and various upgrades.
Last year, General Motors told its 880 Cadillac dealerships in the U.S. that they would each need to be willing to spend around $200,000 for upgrades in order to sell the brand’s EVs or accept a buyout. Approximately 150 dealers accepted a buyout of between $300,000 and $1 million, leaving just those who are confident about the automaker’s EV future.
Auto News reports that at least eight dealership groups have acquired Cadillac stores this year, including Frank Kent Motor Co, Ken Graff Automotive Group in Texas, and Ciocca Dealerships in New Jersey. In addition, the Dosanjh Family Auto Group in the San Francisco Bay Area will establish a new showroom in Stevens Creek, near other luxury dealerships.
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“Looking at where Cadillac was headed, San Jose is one of the biggest markets in California,” Inder Dosanjh said. “It was very attractive to have a Cadillac store on Stevens Creek Boulevard. It’s a major car hub.”
The Capital Automotive Group also won the rights to open Cadillac of Beverly Hills and Cadillac South San Francisco. The automaker hasn’t had a dealership in Beverly Hills for 35 years.
“These are all 20-year decisions,” vice president of Cadillac North America Mahmoud Samara said. “It is very satisfying to know that you have partners [who] can see 20, 30 years down the road, and they’re putting their money where their mouths are. They’re fully invested into the brand, invested into Cadillac. Cadillac has been missing from Beverly Hills for over 35 years. It’s a difficult market. It’s not for anyone. Customers want to touch and feel your product. It’s an emotional connection they build with your brand.”
Some dealers accepted buyouts from General Motors and will use the money to establish new sites.
For example, Frank Kent Motor Co is building a $20 million Cadillac dealership in Arlington, Texas after taking a buyout to close a showroom some 70 miles away.
“Is electric going to sell? Absolutely it will,” group co-owner Will Churchill said. “Will it be 100 percent of the portfolio? I don’t think so. But if the consumers demand it, then [Cadillac is] prepared to do it.”