Featured About 150 Cadillac dealers would rather leave the brand than sell EVs

theen why not pull the caddy dealership instead of paying out 300k?

 

Cheaper than settling it in court.

 

Probably language in the contract makes a buyout the only escape clause that feasible if you don't want to be in violation of the terms of the contract.

 

I live in a small county and the only GM dealer in town sells everything GM makes including Cadillacs. I do see a few around, even two on my short street. But not enough of that brand to keep a dealer in business. OTOH, the dealer just moved in to a new building he built moving from one side of town to the other. Even though both sides are booming.

No idea if he future-proofed the new site which he built from scratch. Right next to the Toyota, Nissan and Ford dealers. A block away from Honda. The Chrysler (or whatever it is now called) dealer is still on the other side of town.

 

Then you got Hydrogen with one nozzle and two choices.

 

And no place to fill your tank up if you want to go on a road trip...

 

Don’t need or bought it for a road trip. It’s for my commute which it does well. If I need to go on a road trip ( which I don’t do ) I can get a loaner from Toyota or just fly to my destination as most People do.

 

Oops, I forgot to include that Fossil Fuel choice. My bad.

 

Yup fossil fuel - the same fossils powering ICE, BEV, Hydrogen and hybrids. But someday alternative sources will be made for all and we will have a true clean energy environment.

 

The lower pressure has a different nozzle, and liquid will have a different one.

 

Yes H70 and H35. But the newer stations only offer H70 and HM70. Same nozzle.

 

What is HM70?

 

I have the same question and other owners have asked too - can’t find any information on what HM 70 is. But it’s a selection on the pumps.

 

I didn't have these handy for my earlier reply, so here is a followup. This is what I saw in Iceland a few years ago:

 

One nozzle?
Oh please, I heard there was more than just one hydrogen refueling station.

Mike

 

To get back on topic...
Bisco, manufacturers have allowed dealers an increasingly amount of power. Dealer agreements are made with each brand, so a dealer can drop one brand agreement and not the others.

Originally, dealers got laws written to protect them from their own manufacturers. These were, IMO, well meaning laws that simply stated a manufacturer could not open a sales center which would directly compete with their own dealerships.
Over the decades, dealers, through excessive use of money, bought state legislatures and modified or created new laws creating a cartel. Basically outlawing otherwise legal business models.

The dealers have a huge amount of leverage in state politics. They actually sit at the table next to legislatures reviewing new bills they spoon-feed them (I saw this first hand in Minnesota when the dealers association was trying to modify the existing law to outlaw Tesla in the state.

I speak of this simply to illustrate just how much power dealers have and how difficult it is for manufacturers to deal with.

 

Yes, back on topic, dovetailing into state & federal legislation, Biden's aim is to legislate away a good amount of fossil fuel burners anyway so let these narcissistic dealerships do whatever they want. It reminds me of some co-workers here, saying they'll just go somewhere else if they have to work graveyard or have midweek days off. Suddenly that dose of reality, that nobody needs them anyway becomes a stark reality. That's because there's plenty of others out there just waiting to take their place during these tough times & high unemployment.
.

 

Even without any form of skulduggery, I bet pretty much any kind of "manufacturer"/"dealer" relationship was always considered a contractual arrangement that would be worth something if one party wanted to walk.

 

i used to be in that type of business. we got a one year contract, with rules and stipulations. it was renewed annually if we lived up to the manufacturers expectations, and both parties decided to move forward together.
all the power was in the manufacturers hands, but it was a much smaller industry than automobiles.

 

Absolutely!
The contractual agreements should have been sufficient. No need to codify the agreements into law.