[ad_1]
Almost 20% of Cadillac dealers have chosen to accept buyouts from General Motors Company (GM) – Get the report rather than paying for the expensive upgrades needed to maintain and sell electric vehicles, according to a report released Friday.
The move will cut the number of U.S. Cadillac dealers by about 150 outlets, the Wall Street Journal reported, citing people familiar with the plans.
According to the report, dealers were offered anywhere from $ 300,000 to over $ 1 million to leave the brand if they didn’t want to spend around $ 200,000 on upgrading charging stations and tools. repair.
Most dealerships abandoning the Cadillac brand are selling other GM lines such as Chevrolet and GMC, according to the report.
Electric vehicles still only account for 2% of vehicle sales in the United States, according to the report.
But shares of companies making and selling electric cars and trucks have taken off this year, led by Tesla Inc. (TSLA) – Get the report outstanding stock performance. Tesla’s market capitalization now exceeds that of most mainstream American automakers combined. And the company’s shares will be added to the S&P 500 Index on December 21. Other exclusively electric competitors, including Nio (NIO) – Get the report, also saw their stocks jump.
Tesla sells its cars online without a dedicated dealer network. And as electric cars have fewer parts, the cost-effective parts and service units of many dealerships face challenges as more electric vehicles hit the road.
GM’s first electric vehicle is not expected until 2022.
GM shares rose 1 cent to $ 44.39 on Friday after hours. Tesla shares fell 4 cents to $ 599 after hours.
[ad_2]
Source link