Why did Cadillac need to offer the buyout? Could Cadillac just tell dealers that the chargers are a requirement to keep being a dealer? Could a dealer that doesn’t want to install the chargers reject the buyout and keep operating?
The contracts between GM and the dealership for carrying the brand don't allow either side to make sudden requirements (like installing $200k worth of chargers) without changing the contract - these contracts usually last a long time, so the time for them to renew and require these chargers could be years in the future.
Since GM doesn't want to stagnate on electric cars, they're offering the buyout since they have new electric Cadillacs coming soon and you don't want a dealership to not carry certain cars just because they declined to install chargers.
I wonder if there is some kind of collective bargaining among dealers in the negotiations with GM, that binds all the dealers. Or if the buyouts are just too good to refuse.
Based on other HN comments it sounds like GM wants to reduce the number of Cadillac dealers because it's GM's luxury brand. Basically they want to imitate Tesla's business model.
These dealers just do Cadillacs as a side gig anyway. They mostly sell other GM brands.
