GM to buyout Cadillac dealers

[XfireZ51]

GM is offering to buyout Cadillac dealers if they don?t agree w EV direction.
EV will fundamentally restructure the distribution system of automobiles. GM is prepping to go EV w Cadillac by offering dealers an opportunity to bail.



https://www.autoblog.com/2020/11/23/gm-cadillac-buyout-electric-cars/?ncid=edlinkusauto00000016&guccounter=1&guce_referrer=aHR0cDovL20uZmFjZWJvb2suY29tLw&guce_referrer_sig=AQAAABY0sRcRZm4H0yH924f3cDcAxH59 pMaVk9q7WSBQIcs2jvUQjvIGxEuHS6mvgzN33dWas4nm941scU Sq2e9iWYwIJ1Yp14XNyBS0-nz8sYRbcgewxnDW7byXHytt3_-PdgdKpXUwJpvXmHZMTyRlhrAt0Lhj6kE--yoXb_0RcJ6H&fbclid=IwAR09uIWXWkxk37T91099N0H6LDRVYV_pi_7gaNoFE 9xEXzDhX4HCqXp9A5w

[Mikey]

The dealership model tends to break down with electric. Not enough money in parts and service anymore. Hence no Tesla dealerships.

[Erik]

Very well played by GM.

[XfireZ51]

The dealership model tends to break down with electric. Not enough money in parts and service anymore. Hence no Tesla dealerships.

Yep. Basically Tesla does maintenance by distributing fixes etc. via internet. A dealership makes its money ?in the back?. New cars are a loser and efforts like Carvana threaten the used car profitability.

[DRM500RUBYZR-1]

I read this a few times.
Here is what I sent today to the members of my local Corvette Club that I have been a member of since 1991.
I titled the email as follows:

The End of the Beginning or the Beginning of the End?

Here you go:

Happy Thanksgiving All!!!

Today was Small Business Saturday.

Hope you found time to support those who enrich your lives in many small ways.

Perhaps you should add Cadillac Dealerships to the list.

While this is a "first", it surely will not be the last, nor will it end with Cadillac.

General Motors has played their hand smartly and well.

This could very well become the model for many "Franchised Dealers"

When you can buy a Chevrolet Bolt that is actually rather well thought out, or a Porsche Taycan with 775 horsepower and zero to 60 in 2.6 seconds, I guess we are seeing the NEAR Future and it is now here.

I still recall waiting for the windows to be uncovered at car dealerships in the 60's when the new models were ready to roll out.

Did I mention that there are two unused fuse locations in the 2020 Corvette?

One is labeled Tone Gen, which sounds like the noise maker they put on hybrids so pedestrians know they are moving.
The other is for a "battery".

We have seen the future;
And it is here.

Guess we all best "Get with the Program"

While I love the thought of instant 700 foot pounds of torque and equal instantaneous horsepower, pardon me if I tear up a bit at the thought of no longer hearing a 427 with Side-pipes or a Z06 coming out of 3rd at full throttle, or my ZR-1 coming out of third at 7400 RPM at 120+ as fourth causes some wheelspin, or the FUN of driving my sons 2020 Mustang GT that with the Father and Son project of Roush exhaust that had me grinning so much I started laughing at how great it sounded.
Guess cowboys looked at motorcars with the same sadness.
Maybe not much time left to "feed" gas to the pony.

Here is the article that prompted this.

GM offers to pay dealers to drop Cadillac brand in switch to EVs

GM offers to pay dealers to drop Cadillac brand in switch to EVs
General Motors is offering $300,000-$500,000 to any Cadillac dealer who is not down with GM's ambitious plans to...



It is a brave new world.
I just cannot yet see myself at Smithville peering in awe at an overgrown blender motor.
Going to Carlisle to see High Performance coil windings?
Just some thoughts while I await the vaccine.

and to all a "Good Night!"

Marty

[XfireZ51]

Marty,

I?m a believer that Corvette will be its own brand as Porsche is today.

[BigJohn]

Porsche has always been its own company from its beginnings.

[Mystic ZR-1]

Own company?
Porsche is owned by VW...

[XfireZ51]

Marty,

I?m a believer that Corvette will be its own brand as Porsche is today.

Meaning that Porsche offers a line of vehicles, not just a 911

[BigJohn]

Own company?
Porsche is owned by VW...

And soon NAVISTAR
Porsche company was founded in 1931

[DRM500RUBYZR-1]

My response to a Corvette Club member that professed a love for the new all electric era, with no noise, pollution, or smell.

OK.
I trust that you have turned in your keys to your smelly, loud and slow Corvette; Correct?

I purchased my first of 3 Hybrids in 2008.
I have divested all, and have no plan to go all electric.

I have decided that staring at an oversized blender motor, regardless of it's potential, is certainly not for me.
You are quite welcome to your opinion, as I am mine.
The sound, smell and fury of a high horsepower combustion engine is something of nearly religious stature to me.
I like that with my many years of experience combined with excessive horsepower and all nanny features turned off, that I can shift a manual transmission well enough to stay with the automatic paddle game boys, or a Tesla.
The sound, the smell, all add to my experience.
Even the vaulted Porsche Taycan Turbo ( which is a lie ) offers a feature that creates noise. Now that just seems silly.

Yes, I can envision the future.
However, that does not mean that I have to like it.

A close friend bought a Tesla.
SEVEN trips back to the dealership.
Then, called the 800 number reporting a glove box door that was falling off.
The customer service rep said that she would send an update to the program that should fix it.
My friend was amazed at the naivete of the help line.
This is the norm for "new" non-dealerships that are ill equipped to service what they sell.

Going to a noiseless car race holds zero appeal.

OK, I AM a Dinosaur.

But I will walk into the showroom tomorrow, and look longingly, lovingly and nostalgically at the gorgeous 67 GTO, or the Tri Power 63 Thunderbird Sports Roadster, or the nearly 700 horsepower Z06, and smile.

I will have passed before they are all only in a museum.

And, I am good with that!

In the meantime; Power up your blender and pick, pulverize, crush, puree, or whatever and see if you can keep up with me.

But wear your ear muffs, I run straight pipes.

(Dino) Marty

[Erik]

My response to a Corvette Club member that professed a love for the new all electric era, with no noise, pollution, or smell.

OK.
I trust that you have turned in your keys to your smelly, loud and slow Corvette; Correct?

I purchased my first of 3 Hybrids in 2008.
I have divested all, and have no plan to go all electric.

I have decided that staring at an oversized blender motor, regardless of it's potential, is certainly not for me.
You are quite welcome to your opinion, as I am mine.
The sound, smell and fury of a high horsepower combustion engine is something of nearly religious stature to me.
I like that with my many years of experience combined with excessive horsepower and all nanny features turned off, that I can shift a manual transmission well enough to stay with the automatic paddle game boys, or a Tesla.
The sound, the smell, all add to my experience.
Even the vaulted Porsche Taycan Turbo ( which is a lie ) offers a feature that creates noise. Now that just seems silly.

Yes, I can envision the future.
However, that does not mean that I have to like it.

A close friend bought a Tesla.
SEVEN trips back to the dealership.
Then, called the 800 number reporting a glove box door that was falling off.
The customer service rep said that she would send an update to the program that should fix it.
My friend was amazed at the naivete of the help line.
This is the norm for "new" non-dealerships that are ill equipped to service what they sell.

Going to a noiseless car race holds zero appeal.

OK, I AM a Dinosaur.

But I will walk into the showroom tomorrow, and look longingly, lovingly and nostalgically at the gorgeous 67 GTO, or the Tri Power 63 Thunderbird Sports Roadster, or the nearly 700 horsepower Z06, and smile.

I will have passed before they are all only in a museum.

And, I am good with that!

In the meantime; Power up your blender and pick, pulverize, crush, puree, or whatever and see if you can keep up with me.

But wear your ear muffs, I run straight pipes.

(Dino) Marty

Nicely said!

[mpiecyk]

Marty,
Your editorial to the Corvette club member that professed a love for a new electric era was outstanding it brought me back to the days of Andy Rooney with 60 Minutes.
Keep up the great work Marty you do a lot for this site and its greatly appreciated.

"T-Rex" Mike P.

[XfireZ51]

So Marty, where do you land regarding rocket propulsion vs Warp Drive?

:cheers:

[efnfast]

Really Dom, you have to ask. Warp Drive duh.

[XfireZ51]

Really Dom, you have to ask. Warp Drive duh.

But but but Steve. Warp Drive is much quieter than rocket propulsion. Rockets have straight pipes.

Of course, I?m just ribbing Marty. I thought it would be a funny comparison.

[DRM500RUBYZR-1]

Having given this considerable thought over multiple cabernets, I can now unequivocally state my opinion with no reservation.

While Warp Drive clearly has superior acceleration it lacks the soul and emotion of rocket propulsion.

How can one doubt the superiority of being pushed almost through your seat as each stage of the rocket comes on line, then the forward thrust as it exhausts itself only then to be slammed back into your seat?

Do I even have to raise the issues of sound smoke and fury?

This is not a Lexus we are talking about here, there is no insulation from these visceral events.

Near whiplash is something to be cherished the same as vaulting a stream on a fast paced horse.

Does it get any better than that?

Light years, schmite years, if it does not feel fast, is it really fast?

I think not.

If your heart is not beating at 130 plus and there is no tremor in your bones, or sweat on your brow with hair standing up, then what is the point of speed?

Banging my knuckles into the ashtray while shifting from 2nd to third in a Mopar was an event to be remembered.

How can that compare to giving a command of " warp 9 now?"

I am an avowed Dino.

:cheers:
Marty

[XfireZ51]

Marty,

If u want real whiplash, just disable the inertial dampners before saying, ?Engage?

Actually, with warp drive you?re really not moving. Rather space-time is.

[DRM500RUBYZR-1]

Marty,

If u want real whiplash, just disable the inertial dampners before saying, ?Engage?

Can this be done on our ZR-1's as well?

Actually, with warp drive you?re really not moving. Rather space-time is.

See, that goes back to my comment about is it fast if it does not FEEL fast!

OK, I am going back out to look at the 67 GTO and dream.
:cheers:
Marty

[Mystic ZR-1]

Marty,

Actually, with warp drive you?re really not moving. Rather space-time is.


That may be true? But Marty, I recommend you
don't stick your head out the window....

[DRM500RUBYZR-1]

That may be true? But Marty, I recommend you
don't stick your head out the window....

I don't profess to know much, but that sounds like a really, really good suggestion.
:sign10:

:cheers:
Marty

[DRM500RUBYZR-1]

150 Cadillac dealers opt out.

https://www.newsbreak.com/news/2118917795883/one-in-six-cadillac-dealers-opt-to-close-instead-of-selling-electric-cars-report

:cheers:
Marty

[BigJohn]

So what happens when all vehicles become electric?
Will all car dealers close because of low maintenance requirements?

[DRM500RUBYZR-1]

So what happens when all vehicles become electric?
Will all car dealers close because of low maintenance requirements?

150 Franchised Dealers question the economics of the future business model.

650 believe otherwise.

Certainly the chances for survival have improved for the 650 given the exodus of the 150.

The cars still collide and require repair, things still wear out and break, but will it support the existing investment and the additional investment needed may cause some to think twice.

And 150 businessmen thought twice and opted to fold em.

:cheers:
Marty

[BigJohn]

I have been told by the body shop that insurance company?s are opting to total rather than repair most modern cars.

[XfireZ51]

A side gig of mine is auditing collision centers for OEM ?certified collision center? programs. Cars will still crash, altho usually w air bag deployment, insurers total the car. The liability of trying to rebuild a vehicle is too great. Lgaff could also give us a perspective on this since he runs a collision adjusting organization for an insurer.
Bottom line is that auto parts, oil change, mechanical repair won?t be growth industries. And Tesla has demonstrated how you don?t need the franchise structure to sell 300k units/yr. Both Hans and myself can attest to the overhead expense an OEM has in servicing that franchise organization. Apparently some dealers have seen this coming and have been making significant investment in collision repair facilities as a way of offsetting loss of mechanical repair. All of this isn?t going to happen overnight. But the trend is in that direction certainly w the continued advances in e-Car technology.