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So the headline is written in a way that I read it as car dealers are being obstinate and not wanting to sell electric cars. Secondly, the deal as I understand
by S_A_P 6y ago
So the headline is written in a way that I read it as car dealers are being obstinate and not wanting to sell electric cars. Secondly, the deal as I understand it is very similar to one proposed by Johan de Nysschen a few years back just to cull the dealership network and make it more exclusive. (that at the time IIRC most dealerships roundly rejected)
I didnt get past the paywall so maybe it explains better, but I believe the current deal will cost the existing dealers a lot of money to convert over to the new electric format which wont be worth it to smaller dealers or dealers that sell a mix of brands(also usually smaller dealers).
Honestly, it seems like GM is again mishandling its flagship brand and reacting to market conditions instead of trying to steer the market or push technology. They have been doing this for at least 3 decades now, and I dont understand why. Cadillac shouldnt be a volume brand, and they also shouldnt push for profit over everything else. Cadillac should be the GM Halo, with the most R&D and engineering resources creating the tech and engineering that filters down to the volume brands.
Instead they tried to be more BMW and Mercedes Benz than BMW and MB was. They of course failed miserably at that. Some good cars were produced, but they ended up compromised in some way that would make purchasing that over a German competitor pointless. Usually this was in the interior quality which was and remains subpar vs competition.
Next they got 'blindsided' by the switch in consumer preference to SUVs. I dont see how this was ever the case as the Escalade has been their bread and butter since ~2000. From what I understand the CT6 was going to become a RWD platform for a lux SUV(which would have probably been great) but GM got cold feet and instead adopted the C1XX FWD platform which while is serviceable is hardly class leading.
They developed a brand new ICE engine called "Blackwing" that was state of the art. They placed it in the CT6 for about a year only to cancel that car and realize the engine doesnt fit any other platform they make. I cant even fathom how much was lost in that deal.
Ok now they want to go all in on electric, with the only other electric being the tarted up Chevy called the ELR. I suspect that the result will end up being too expensive to recoup development costs, and if past performance is an indicator it will get canceled right as the bugs are worked out and it becomes viable. This is where Cadillac needs to actually commit to really going all in and get the freaking accountants out of the pipeline. Sure building cars is hard and expensive and risky. Cadillac used to be aspirational and forward thinking until the 60s. I suspect they didnt make a lot of money back then either. Of course maybe Im just an armchair quarterback here but from my perspective they are rudderless.
- Hypx 6y agoYeah, they're totally lost and are constantly trying to reinvent the brand. It's hard to see this level of cluelessness and not realize that the brand is likely doomed. For some reason others don't like that interpretation of events. If I owned a dealership, I'd the take the money and leave. Not because I don't like EVs or whatever. But rather because I know there will be some other, crazy direction change in the future. And everyone of them will be a money losing disaster.
- S_A_P 6y agoI think you're right. And while I generally find Elons Twitter antics amusing to sometimes headscratching I think he is right about the dealership model. EVs in my totally nonscientific off the head mental model probably require 35-50% of the maintenance of ICE vehicles, so Caddy dealers arent really going to be able to make much money if they go strictly EV. I expect a big shift in how cars are sold in the next 20 years. Where I live in Houston there are hundreds of car dealers, I expect that to reduce by a large percentage when/if EVs take over.
- chiefalchemist 6y agoNot to get off topic but vehicle models aside, it feels like you could be talking about Google.
- kgin 6y agoThe EV switch for GM seems to have somewhat more thought behind it. Honda is even signed on to share a jointly-developed electric platform for EVs.