AD #3199 – Cadillac Slashes U.S. Dealers; Advantages of Lithium-Sulfur Batteries; Honda Slams Union EV Tax Credit

November 8th, 2021 at 11:55am

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Listen to “AD #3199 – Cadillac Slashes U.S. Dealers; Advantages of Lithium-Sulfur Batteries; Honda Slams Union EV Tax Credit” on Spreaker.

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Runtime: 10:06

0:08 Honda Wants Employees to Oppose Union EV Tax Credit
1:24 Cadillac Slashes Amount of Dealers
2:05 Elon Musk Polls Twitter Followers About Selling Tesla Stock
2:47 Tesla Sells More Than 54,000 China-Made Models Last Month
4:02 Renault Repurposes Plant to Remanufacture Used Cars & Batteries
5:33 UK Looks to Revive Rare Earth Magnet Production
6:11 VW Launches New ICE Models in India & South America
7:23 Advantages of Lithium-Sulfur Batteries

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32 Comments to “AD #3199 – Cadillac Slashes U.S. Dealers; Advantages of Lithium-Sulfur Batteries; Honda Slams Union EV Tax Credit”

  1. Kit Gerhart Says:

    The Cadillac dealer I’m most familiar with is Cadillac/Buick/GMC. If they want to drop Cadillac, would they be able to keep Buick and GMC?

  2. Rey Says:

    Some of the most popular cars GM sells in China are Buicks& are made there, I thought the Caddy LYRIQ was going to be sold in China, made there?

  3. Rey Says:

    Question for John McElroy, with Caddllac Dealers shrinking GMs marketshare shrinks too , doesn’t it? Like the Vehicle Pie gets smaller?, How much of the pie gets bigger with the Hummer brand resurrection, it being a niche or halo vehicle, Caddy is a brand that Buick Chev and GMC won’t service? A lot of questions here with Cadillac franchisees opting out, Maybe GM didn’t think this Ultimatium deep enough? yes , pun intended on that Ultium come Ultimatum.

  4. DanaPointJohn Says:

    1. They are probably encouraged to keep those lines, unless there is another store within 20 – 25 miles. Eventually though, if Barra stays on track, even Buick and GMC will all be BEVs. Many years from now of course, but having those two lines won’t save that dealership after 2030.

  5. Mac Says:

    For Cadillac, if the goal is to shrink the brand to the point that it will appeal only to the very wealthy in large metropolitan areas, then this strategy is a winner. I know a now-former Cadillac dealer who was offered $400K to quit the line (he’s keeping Buick & GMC), told me that it would take decades to recoup the cost to retool his dealership to accommodate the all-electric line.

    Reminds me of an old cartoon from several years ago — it depicted a CEO standing in front of his board of directors stating, “We’ve just achieved the ultimate cost reduction. . .we’ve gone out of business.”

  6. wmb Says:

    Regarding Honda’s push for inclusion of its future BEVs that it will be assembling at its local plants and them receiving the federal grants, IMHO, it makes no since. Whose to say that, by the time they are literally building their own, the grants will still be available? On top of that, hasn’t there always been local initiatives on the part of the leadership of many transplant automakers and state governments to keep those plants from unionizing? So when the union’s candidate gets in office, does something to support those who supported them, they call foul! The Big Three and their unions have often complained about what they feel is an unfair advantage that many of they transplants receive when they set up shop in the US. So now when it appears that they may get a leg up on them from the federal government, they have something to say. Don’t get me wrong, I think Honda makes some of the greats cars on the road today. This has motivated the local manufacturers to improve Their products to compete and the customer has been all the better for it! Yet, when you look at the automotive trade deficit that this country has with other countries, to hear that a transplant automaker, from one of those countries, feels that the federal government is providing an unfair advantage to their local businesses is sad.

  7. Henri Says:

    “Foreign” automobile manufacturers were banned in Japan during the 1930s and still are! All domestic automobile production in Japan uses unionized labor. Honda, along with ALL OTHER Japanese and European makers (except for Stellantis/nee Chrysler) are not unionized in the United States thus leaving GM and Ford twisting in the wind. I’m not a friend of the UAW, however, I can’t help but snicker at Honda’s whining about fairness.

  8. GM Veteran Says:

    On Cadillac:
    Dealerships with other GM lines will keep them, just lose Cadillac.
    Cadillac plans for China are unaffected. This is a US-only initiative.
    I don’t know how the pitch was made to the Cadillac dealers, but they will still need to make a big investment in order to sell Buicks, GMC’s, Hummers (GMC), and Chevrolets. The Buick-GMC dealers are already getting equipment installed to support the Hummer launch and the electric Silverado/Sierra are only about a year out. Some of the Cadillac dealers may have acted a bit hastily since the investment would need to be made sooner or later to support their overall GM business.

    A friend told me that there is no coordination happening between Cadillac and the other divisions. The dealer councils should have pushed back on that. Dealers should not have to invest in a complete “electrification package” for their dealership from each brand if they sell Buick, GMC and Cadillac.

    I think GM and Cadillac saw this as an opportunity to cull their rural Cadillac franchises and were very surprised at the number that decided to take their money and give up the franchise. Ultimately, I think this will not be beneficial for Cadillac. They just gave a lot of consumers a good reason to shop other brands, like Lincoln, that will continue to have dealers in mid-size markets that Cadillac has walked away from.

  9. GM Veteran Says:

    Since Toyota, Honda and Nissan all sell many more vehicles in the US than they do in their home country, I am not surprised that they are very concerned about any moves that may threaten some of their sales here. However, that doesn’t bother me one bit and it is just a small move of protectionism against a country that has specialized in it for more than 60 years. A taste of their own trade tactics is long overdue.

  10. Sean Wagner Says:

    It seems Cadillac’s Global VP Rory Harvey has some extensive experience with GM (capitals) in Europe. So it stands to reason he may understand the potential for upscale EVs like the Lyriq over here, where Tesla’s Model 3 bested all medium-size sedans in Q3 (when 11.5% of all sales were electric).

    More and more people in Europe are looking around for suitable EVs – the window will not stay open forever. Come on Cadillac, show some ambition.

  11. Wim van Acker Says:

    @10, your point is purely theoretical: which GM or Ford product would anyone want in Japan? All are too large and fuel-inefficient. And one more detail: Japan has Right Hand Traffic.

  12. Kit Gerhart Says:

    According to the linked article, Cadillac will “still have more dealers than other established luxury brands.” I assume that means M-B, BMW, Lexus, and maybe others. Still, they need more volume. Maybe the Lyric will help, if the bad press from Bolt doesn’t hurt it too much.

  13. Sean Wagner Says:

    11 Wim – You’ve lost me there. I’m thinking of Europe.

  14. Kit Gerhart Says:

    11 Mustang, and soon, Corvette, and maybe Wrangler are the only RHD vehicles made by North American companies. The RHD market for those would be mostly Australia, with a few in the UK.

  15. Kit Gerhart Says:

    10 I hope they try to sell Lyric in Europe. It would be a new, and intersting new entry, and EVs sell well in Europe.

  16. Drew Says:

    @9 – Japan has not had any imported auto trade barriers for about 40 years, if not longer. Big Three vehicles were handicapped by non-trade issues… such as their vehicles being too large for Japan’s narrow streets and parking places, lack of a dealer network (and no open land to physically build them), intense consumer loyalty, and poor business cases (at the time) to convert iconic vehicles to RHD for a low volume of enthusiasts. Yes, there was a time when Japan has a maximum vehicle width of 1700mm… decades ago. Those American vehicle that were imported into Japan were not well-received by the dealers/customers for real and perceived quality issues (e.g., underbody surface rust).

  17. Wim van Acker Says:

    @13, my bad, I meant to write 10

  18. Al Says:

    I don’t understand Cadillac. AS a senior who would consider a Cadillac (and had 2), I have no interest in traveling over an hour for service. In my area, 3 Cadillac dealers have closed over the years that were within a reasonable travel distance. Part of buying a car is dealership service ans repairs – and God knows Cadillac has their share of needed repairs!

  19. SteveO Says:

    Fun fact: According to Automotive News, all those departing Caddy dealers added up to less than 10% of the brand’s annual sales volume. So no great loss.

  20. Roger T Says:

    Honda calling out their employees
    #6 – I think they’re freaking out that this added incentive will really turn the market to electric. Nothing to do with long term plans, I think they’re trying to hold the market back a little longer.

  21. Kit Gerhart Says:

    18 It seems that all dealers are moving away from where people live. Where I am in Florida, the Toyota, Kia, and Chrysler/Dodge/Jeep dealers have all moved from populated areas to near an interstate, where no one lives.

  22. Kit Gerhart Says:

    19 I’m not surprised. It’s the low volume dealers that are quiting.

  23. Bobby T Says:

    Ford thought it could sell Tauruses in Japan, so when we designed the new 1996 model we designed and tooled up a RHD version. The car was not successful in Japan, and the RHD version was dropped after a few years.

  24. Kit Gerhart Says:

    23 Taurus would have been too big for a generic sedan to sell in Japan. Something different, like Mustang, and planned RHD Corvette should do better there, even though “too big.”

  25. Bob Wilson Says:

    I replaced my cell phone battery and lithium-sulfur was not an option. More than EVs need better batteries.

  26. Kit Gerhart Says:

    25 Are lithium-sulphur batteries even made commercially yet? If they were, they probably wouldn’t be a drop-in replacement, because they are lower voltage/cell than lipo.

  27. John Lockhart Says:

    Looked up the VW Polo Track, which will be sold in South America and possibly elsewhere in the world. Slightly smaller than Golf, increased ride height “Adventure Vehicle”. No details, but I’m guessing likely TDI, manual transmission, extremely efficient, satisfying to drive. Built on existing, tried and true architecture with a slight update. Interesting. Certainly not anything Americans would want.

  28. cwolf Says:

    The entire car industry is in chaos as they try to reinvent themselves. There continues to be so many hurdles for them to overcome, besides getting vehicles on dealer lots, yet new technology grows so fast that no one can keep up or knows what to do. In the end, all this mess only confuses buyers and makes them more reluctant to take the leap into EV’s…. which most can’t afford anyway.

  29. Kit Gerhart Says:

    27 I’d like a TDI manual Polo, but without the lift kit, as a “city car.”

  30. John McElroy Says:

    #3. Rey, Cadillac may lose some sales with the dealers that are leaving. But it says that the remaining dealers account for 95% of its sales. If this is true that means it had a lot of dealers that sold very few cars. They probably survived by being multi-franchise dealerships. The remaining Cadillac dealers will probably become more profitable.

  31. Fstfwrd Says:

    I guess my opinion is that our government should NOT offer any incentives at all. Union or Non-union. We need to stop spending money!! We should not try to support any industry with the hard earned money of the taxpayer.

  32. Rey Says:

    #30 John McElroy, The old GM had too many brands, with Olds and Pontiac and Hummer and Saturn chasing dwindling customers and spreading themselves too thin in a changing world, like UBER and Lyft, DiDi rideshare, same with VAG VW, with its SEAT, AUdi,Bentley,etc.
    The World is changing, with now work from home and the internet,and UBER,rideshare and Carshare becoming popular, I think there will be less cars on the road, and too many car manufacturers chasing dwindling car ownership.
    Geely who lik liken to GM with its different divisions has their LynkCo brand , a car sharing model where the Company owns the car, and is shared in the Community, the driver pays a fixed rate Insurance ,maintenance all in, in the Netherlands,China as well i guess.