# GM Gives Cadillac Dealers an Ultimatum in New Move to Go Electric

Published 2020-12-03 · Updated 2026-07-23 · Professional AV on MarketScale
Canonical: https://www.marketscale.com/industries/pro-av/gm-gives-cadillac-dealers-an-ultimatum-in-new-move-to-go-electric

> With the #1 selling car company in the US being that of electric vehicles (Tesla), it’s no wonder that major car manufacturers are looking at EV for the future. For GM, they look to their Cadillac line to go EV. For Cadillac dealers around the country, this means a huge shift in sales and…

With the #1 selling car company in the US being that of electric vehicles (Tesla), it’s no wonder that major car manufacturers are looking at EV for the future. For GM, they look to their Cadillac line to go EV. For Cadillac dealers around the country, this means a huge shift in sales and training, as well as a big investment in new infrastructure. This is a transition that many dealers don’t want to make. In an effort to trim the fat of inflexible dealers, GM is offering them the option to opt-out, along with up to $500,000 in settlements. [According to Electrek](https://electrek.co/2020/11/24/gm-gives-ultimatum-cadillac-dealers-who-dont-want-sell-electric-cars/), GM was already on the lookout to slim down its Cadillac dealers as sales of the model did not keep pace with the demand.

MarketScale Radio takes a closer look at EV growth with Daniel Litwin and Tyler Kern. Litwin considers the black-and-white option GM has proposed to its dealers, and how the bold move may incentivize the sale of EV’s for dealers staying in the game, being the push the EV industry needs to overtake the market.

KEY POINTS:

- GM considers making the Cadillac line entirely electric.
- The move instantly outdates many Cadillac dealerships.
- Cadillac dealers face dilemma to adapt or get out.

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