Automotive News Canada - June 2021 - 26

26
* JUNE 2021
With Lyriq,
Cadillac dealers
are singing
a new tune
The utility vehicle is
the luxury brand's first
step on the journey to
an all-EV lineup, and
Canadian retailers
recognize its their future
By DANA FLAVELLE
T ORONTO CORRESPONDENT
CARTER CADILLAC IN CALGARY
has about three dozen customers on
a waiting list for the Lyriq, Cadillac's
first battery-powered luxury
utility vehicle.
That's a key reason dealer
principal Jay McKeen said
he believes that a $250,000
investment in preparing one of
Canada's top-selling Cadillac
retailers for an electric future
is going to pay off.
" We're approaching our
first year of volume already sitting
on the waiting list. That's
why I'm so optimistic about it, "
McKeen told Automotive News
Canada. " It gives you a lot of
confidence. "
ning of the year, GM
has also announced a redesigned
Chevrolet Bolt EV sedan,
a Bolt EUV utility vehicle and a utility
version of the GMC Hummer EV.
There are also plans for an electric
Chevrolet Silverado pickup.
A JOLT FOR DEALERSHIPS
For the 122 GM dealerships in
Canada that sell Cadillac vehicles -
slightly less than one quarter of all
the automaker's dealers in the country
- including the five standalone
stores in larger areas, the shift to an
electric platform means investing in
EV charging stations, new tooling and
staff training, McKeen said.
GM Canada has helped by sending
consultants to advise each
dealership what is required, he
noted.
For the dealers' service
departments, EVs mean dealing
with fewer moving parts but
more technology.
General Motors unveiled the
production model of the 2023
Cadillac Lyriq on April 21, saying
it would be available in the
first half of 2022, nine months
ahead of schedule. The sleek,
high-tech vehicle has a starting
price of $69,898, including shipping,
and a 480-kilometre range, the
company said.
McKeen:
Will spend
$250,000 on
EV charging
stations,
tooling and
staff training
to prepare
Carter
Cadillac
for an
all-electric
future.
SUPPLIED
PHOTO
The vehicle is the first EV for GM's
luxury brand. Cadillac has committed
to selling only electric vehicles
by the end of the decade, part of GM's
wider strategy to end production of
gasoline-powered vehicles across all
its brands by 2035. Since the begin " I
think with the Lyriq,
what GM is announcing is
they're not fooling around.
They're aiming at the heart of
the luxury vehicle market, "
said Robert Karwel, senior
manager of J.D. Power's automotive
practice in Canada.
SUVs are the fastest-growing
segment of the luxury market,
he noted.
" What does this mean for
dealers? This is going to force
them to think five years down
the road when they might be
doing significantly more volume of
electric vehicles, " Karwel said.
While 95 per cent of premium vehicles
sold in Canada are gasoline-powered,
Karwel predicts that in five
years, 15 per cent to 20 per cent of
new-vehicle inventory at dealerships
could be EVs.
" It's something they need to preexit
the Cadillac business, " Peever
wrote. " Ultimately, the decision is
up to each individual dealer. "
Such discussions have yet to
take place with dealers in Canada,
said Gary Sartorio, chair of the GM
Dealers Communications Team and
president of Shaganappi Motors in
Calgary. He also didn't know whether
any Canadian GM dealers were
planning to exit the Cadillac brand.
Carter Cadillac's McKeen is
optimistic about Cadillac's
EV direction because, " we're
approaching our first year of volume
[for the Lyric] already sitting on the
waiting list. " PHOTO: CARTER CADILLAC
pare for, " he said.
Cadillac Canada has been working
closely with its dealers " to chart the
course to electrification, " Managing
Director Shane Peever wrote in an
email.
" EVs require a unique set of education,
training and tools, and we are
going to help our network prepare for
Lyriq and beyond. "
Peever declined to provide figures
on the cost of the program or how it's
being shared with the dealers.
SOME U.S. STORES PULL THE PLUG
EVs are a tougher sell in smaller
markets. Customers are concerned
about range and the availability of
charging stations, said McKeen of
Carter Cadillac, which
is a standalone store.
Late last year in the
United States, about
one-fifth of Cadillac's
nearly 900 dealers
accepted a buyout offer
from GM as the brand
transitions to electric
vehicles, according
to sibling publication
Automotive News.
Those dealers have
until Nov. 30 to wind
down Cadillac operations,
while retailers
who continue with the
brand are required to
invest an average of US
$200,000 in their facilities
for EV sales and
service.
The high-tech Lyriq has a starting
price of $69,898, including shipping,
and a 480-kilometre range. PHOTO: GM
Cadillac Canada said
it's open to helping any
dealers who want to
drop the brand, however,
it did not provide
details.
JUMP-START TO THE FUTURE
In general, for automobile dealers
of all kinds, the shift to EVs
ranks fourth on the list of reasons to
get out of the business, behind age
of the owner, lack of
a successor and the
cost of imaging, said
Farid Ahmad, CEO
of Dealer Solutions
Mergers and
Acquisitions.
Ricci:
Is " really
excited "
about
Cadillac's
direction,
and plans
to create
an " EV
culture. "
PHOTO:
LINKEDIN
For large-volume
GM dealers such as
Roy Foss Motors,
with two locations
in the north Toronto
suburb of Vaughn,
the Lyriq is the start
of an exciting journey,
said group
President James
Ricci.
" Cadillac is going
fully electric. That's
their vision for the
Peever:
If dealers
prefer to
skip " the
EV journey,
we will
make a
genuine
effort
to offer
fair and
equitable
assistance
should they
wish to exit
the Cadillac
business. "
FILE PHOTO
" For dealers who choose not to join
us on the EV journey, we will make a
genuine effort to offer fair and equitable
assistance should they wish to
brand globally. We're really excited, "
said Ricci, the third generation
in the family-owned business.
" Our vision is to create a mobility
hub so that we have the ability
to sell and service various forms of
personal mobility, " he said.
That means investing not just in
infrastructure, such as super-fast
charging stations that will be available
to the public as well as customers,
but also in employee training to
create an " EV culture, " Ricci said.
GM has provided a suite of training
programs - some optional,
some mandatory - to assist with
the transition, he said.
Investing in the physical infrastructure
to support the Lyriq over
the next 12 to 18 months will cost
" several hundred thousand dollars, "
Ricci said. But he believes it's the
right move at the right time.
" Everyone has to take the risk at
their own pace, " Ricci said. " But it's
kind of hard to imagine EVs aren't
going to be a predominant part of
your sales within five years. "
- ANC
- Hannah Lutz contributed
to this report.
The Cadillac Lyriq is expected to debut next year as
the brand's first EV. By decade's end,
all Cadillacs are expected to be electric. PHOTO: GM
Automotive News Canada - June 2021

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