About 150 General Motors Co. dealers have decided to part ways with Cadillac, rather than invest in costly upgrades required to sell electric cars, according to people familiar with the plans, indicating some retailers are skeptical about making the pivot to battery-powered vehicles.

GM recently gave Cadillac dealers a choice: Accept a buyout offer to exit the brand or spend roughly $200,000 on dealership upgrades—including charging stations and repair tools — to get their stores ready to sell electric vehicles.

The buyout offers reportedly ranged from around $300,000 to more than $1 million. About 17% of Cadillac’s 880 U.S. dealerships agreed to take the offer to end their franchise agreements for the luxury brand.

The buyouts are an early sign of looming changes for car dealers as traditional auto makers move aggressively into electric vehicles.

© 2022 First XV. All rights reserved.