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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:

GM announces 6 recalls covering nearly 720k cars

General Motors has announced yet another sprawling recall campaign, with six separate elements covering 717,950 vehicles on US roads. At this point in 2014, it's starting to seem like there are more days with a GM recall than without. Perhaps most troubling about this latest volley, though, is that every vehicle is from the past few years, indicating that GM's quality woes may not be limited to pre-bankruptcy vehicles.
The largest element of this latest campaign covers 414,333 units, and includes the 2011 to 2012 Chevrolet Camaro, 2010 to 2012 Chevy Equinox, GMC Terrain and Cadillac SRX and the 2011 to 2012 Buick Regal and LaCrosse. Only vehicles with powered, height-adjustable seats are covered. In these particular cars and crossovers, the bolt that secures the height adjuster actuator may loosen of its own accord and in some cases fall out completely. If this happens, the seats will be able to move both up and down. GM claims the vehicles are safe to drive, provided drivers don't vertically adjust their seats. This particular issue has caused one crash and three injuries.
The largest element of this latest campaign covers 414,333 units, including the Chevrolet Camaro and Equinox, GMC Terrain, Cadillac SRX and the Buick Regal and LaCrosse.

GM puts e-commerce shopping in car dashboards

DETROIT — General Motors on Tuesday said it will equip newer cars with in-dash e-commerce technology, betting it can profit as drivers order food, find fuel or reserve hotel rooms by tapping icons on the dashboard screen, instead of using smartphones while driving. GM's Marketplace technology, developed with IBM, will be uploaded automatically to about 1.9 million model-year 2017 and later vehicles starting immediately, with about 4 million vehicles across the Chevrolet, Buick, GMC and Cadillac brands equipped with the capability in the United States by the end of 2018, GM said. GM will get an undisclosed amount of revenue from merchants featured on its in-dash Marketplace, Santiago Chamorro, GM vice president for global connected customer experience, said during a briefing for reporters. Customers will not be charged for using the service or the data transmitted to and from the car while making transactions, he said. "This platform is financed by the merchants," Chamorro said. GM will get paid for placing a merchant's application on its screens, and "there's some level of revenue sharing" based on each transaction, he said. It is too soon to say how much revenue GM could realize from the Marketplace system, he said. The GM Marketplace will compete for customer clicks and revenue with hand-held smartphones, which offer a far richer array of applications than the GM system will at the outset. Amazon.com is partnering with other automakers, including Ford, to offer in-car e-commerce capability through Amazon's Alexa personal assistant system. For example, GM will launch Marketplace with just Shell and Exxon Mobil icons in the fuel category. The only restaurant available for in-car table reservations at launch is the chain TGI Fridays, GM said. In addition, there will be apps for parking, and ordering ahead at coffee shops and restaurants such as Starbucks, Dunkin' Donuts and Applebee's. "We will be adding more vendors," with some coming in the first quarter of 2018, Chamorro said. In addition, he said GM plans to expand integration into its vehicles of music, news and other information services. GM also hopes to use its in-car Marketplace connections to expand purchases of products and services, such as additional access to in-car wifi, from its own replacement parts business and dealer network. Customers can "expect to see more service promotions coming through the platform," Chamorro said. Reporting by Joe WhiteRelated Video: