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About 150 Cadillac dealers would rather leave the brand than sell EVs

Dealerships might hamper GM’s plans to electrify its cars. Wall Street Journal tipsters claim that roughly 150 GM dealerships in the United States have decided to drop the Cadillac brand and accept a buyout (ranging from $300,000 to over $1 million) rather than spend about $200,000 to upgrade the dealerships with charging stations, repair hardware and other equipment needed to sell EVs. Many of these dealerships only sell a few Cadillacs per month versus more for Buick, Chevrolet and GMC, but itÂ’s still a significant blow when GM has 880 Cadillac dealers in the country. Cadillac brand leader Rory Harvey confirmed to the WSJ that GM was offering buyouts, but didnÂ’t say how many dealers took them or how much they were worth. The exodus underscores the challenges for conventional car brands as well as the potential advantages for alternatives like Tesla. As brands like GM are heavily dependent on dealerships, they have to please owners to have a chance of strong sales — and thatÂ’s difficult when theyÂ’re not certain about demand, even without the pandemic. Tesla and other direct-to-customer EV makers arenÂ’t bound by physical stores and already have the infrastructure in place for service centers. Dealers might not have much choice in the future. California is banning sales of new gas-powered cars by 2035, and that will likely force automakers to electrify no matter how dealership owners feel. The buyouts now arenÂ’t necessarily temporary, but we wouldnÂ’t rule out some shops having a change of heart as the effective EV deadline approaches. Related video:

Teaching autonomous vehicles to drive like (some) humans

While I love driving, I can't wait for fully autonomous vehicles. I have no doubt they'll reduce car accidents, 94 percent of which are caused by human error, leading to more than 37,000 road deaths in the U.S. last year. And if it means I can fly home at night in winter and get safely shuttled to my house an hour-plus away — and not have to endure a typical white-knuckle drive in the dark with torrential rain and blinding spray from 18-wheelers on Interstate 84 — sign me up. Autonomous technology will also take some of the stress, tedium and fatigue out of long highway drives, as I recently discovered while testing Cadillac Super Cruise. AVs are also supposed to eventually help increase traffic flow and reduce gridlock. But according to a recent Automotive News article, as the first wave of AVs are being tested on public roads, they're having the opposite effect. Part of the problem is they drive too cautiously and are programmed to strictly follow the written rules of the road rather than going with the flow of traffic. "Humans violate the rules in a safe and principled way, and the reality is that autonomous vehicles in the future may have to do the same thing if they don't want to be the source of bottlenecks," Karl Iagnemma, CEO of self-driving technology developer NuTonomy, told Automotive News. "You put a car on the road which may be driving by the letter of the law, but compared to the surrounding road users, it's acting very conservatively." I get it that, like teen drivers, AVs need a ramp up period to learn the unwritten rules of the road and that a skeptical public has to be convinced of the technology's safety. But this is where I become less of a champion on AVs, since where I live in the Pacific Northwest we already have more than our share of overly cautious human drivers. Since moving here 12 years ago, I've found it's an interesting paradox that a region famous for its strong coffee, where you'd think most drivers would be jacked up on caffeine, is also the home to annoyingly measured motorists. As an auto-journo colleague living in Seattle so aptly put it: "People in the Pacific Northwest drive as if they have nowhere to go." If you drive like me and always have somewhere to go — and usually are in a hurry to get there — it's absolutely maddening.

GM winding down Chevrolet brand in Europe

If you've taken even a cursory look at GM's European strategy and wondered how it can target the market there with both Chevrolet and Opel/Vauxhall, you're not alone. In fact General Motors itself has found it difficult to justify the two-pronged approach. That's why it's essentially pulling Chevy from the European marketplace.
Instead of trying to ply European buyers with what are mostly former Daewoo products rebadged as Chevys, GM will now let Opel (or Vauxhall in the UK) represent its mass-market aspirations. Chevrolet will keep its presence in Russia and other former Soviet markets, and will continue selling certain niche products in Eastern and Western Europe. The Corvette, for example, has long been sold in Europe through Cadillac dealerships, which for its part is currently "finalizing plans for expanding in the European market".
While the shift in strategy is expected to help GM get a stronger foothold in the European market in the long run, in the short term the restructuring will cost it dearly: between $700 million and $1 billion, according to its own estimates, split between the last quarter of this year and the first half of the next. Jump into the full press release below for more.