Cadillac preps dealer network for upcoming EVs, including Lyriq

Cadillac faces an ambitious to-do list as it prepares to make its lineup fully electric within the next decade, starting with the Lyriq crossover unveiled this month.

The list goes beyond installing charging stations at dealerships and in major metro areas before Lyriq production starts in late 2022.

"There are an awful lot of questions that come from first-time EV owners," said John Malishenko, COO of Germain Motor Co., which has dealerships in Ohio, Michigan and Florida. "It's a very different way of transporting yourself. We have never had to think about range. We have never had to think about refueling. We have to have answers to those questions. It goes beyond just having the equipment to sell and service. It's how viable is it as a transportation option."

General Motors is partnering with EVgo to add 2,700 fast charging stations in about 40 markets over the next five years, and the company is planning to train dealers nationwide.

Cadillac said the Lyriq, powered by GM's proprietary Ultium batteries, will have a range of more than 300 miles at launch, which may ease many consumers' range anxiety. Still, the brand faces competition from rivals' upcoming EVs and is implementing new requirements that could force dealers to make some tough and potentially costly decisions.

"We're working with our entire network to make sure that we're all on the same page here in terms of what this product represents and what we need to do to be ready when it comes time for going on sale," Steve Carlisle, president of GM North America, told reporters this month. "We have quite a lot of work to do with our dealers on a get-ready basis. They're very much engaged in the process and excited."

Over the next two years, Cadillac dealers will install charging stations on-site and go through training to sell and repair EVs, said David Butler, chairman of the Cadillac National Dealer Council and executive manager of the Suburban Collection, a Michigan-based dealership group.

"It's a different model from the ICE vehicles. For instance, in fixed operations, you don't have an engine to tear apart anymore in [electric vehicles]. There's going to be some changes there," he said.

Dealerships' service bays will need unique lifts to accommodate the batteries and special tools for EV service work, Malishenko said.

Many dealers fear that EV sales will yield little returns after they invest in charging and fixed operations equipment, along with an EV training program.

"At some point, that's a pretty significant investment by the stores," Malishenko said. "It doesn't seem reasonable, at least early on, that they all do it. But I guess time will tell, how they roll it out market to market."

Stores in markets where EVs are starting to gain traction likely will be able to better support the investment, he added.
Automakers that offer dealers financial assistance for selling EVs have stronger sales results, said Michelle Krebs, executive analyst at Autotrader. In addition to financial incentives, "there has to be a lot of education around electric vehicles. It's requiring all hands on deck to get people familiar around electric vehicles, and there are a lot of myths that have to be dispelled. It's requiring automakers to support dealers, [and] dealers to educate consumers because they're on the front lines."

Cadillac intends to sell the Lyriq broadly, not just in major cities and coastal markets where EVs are most popular. To align with GM's overall electrification strategy, Cadillac's EV plan must be national, Carlisle said.

"There are some states in the current moment that have a higher propensity than others, and we need to pay attention to that," he said. "But we also need to be aspiring to our entire lineup.

"We believe within the next seven to 10 years we'll be electric, which implies that we need to be operating across the country."

In the San Francisco area, consumers are eager to have more EVs to choose from, and Inder Dosanjh, dealer principal at Dosanjh Family Auto Group, expects the Lyriq to stand out from other EVs.

"For our demographic, it's a game changer. We are very, very excited," he said.

But Cadillac dealers in rural areas with low EV demand and sparse infrastructure could face a choice: Sell the franchise or adopt Cadillac's new standard and hope that EV demand grows.

"I would expect some attrition from these moves, but I know Cadillac is working on a plan to roll this out with all their dealers," Butler said. "We're still two years out, so it's a moving target."