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GENERAL Motors has allocated $US274 million ($A370 million) to buy out selected Cadillac dealers as it accelerates its EV push and plans to launch an electric SUV.

The move is in response to growing EV sales and predicted changes to online sales, but also to take on Tesla which is growing its market and expanding its model range.

The dealership plans echo that of rival Tesla that has no franchised dealers and sells cars directly to customers. Other EV firms including Lucid and Rivian also plan to sell vehicles online.

Reuters reports from the US that GM wants almost 40 per cent fewer Cadillac dealers in the US than it had in 2018.

Most of the restructuring of the brand is complete and now GM expects to have 560 dealers in its US network by the end of this year, compared with about 920 three years ago, said Reuters quoting the head of the global Cadillac brand, Rory Harvey.

By comparison, GoAutoNews Premium discovered that in the US Cadillac rival BMW has 347 dealers; Mercedes-Benz has 383; Audi has about 305; and Lexus has 243.

The funds to buy out dealers during 2020 and 2021 was aimed at Cadillac dealers who were not prepared to invest $US200,000 to $US500,000 ($A270,000-$A675,000) per store in the equipment and training to support the brand’s shift to an all-electric vehicle lineup, planned by 2030.

Cadillac will still have more US dealers than other established luxury brands and has opened new showrooms in New York City, Beverly Hills, San Francisco, and Atlanta.

Mr Harvey said the dilution of dealerships was contained within the US and did not affect the brand’s biggest market, China.

Cadillac’s sales in China were up 20 per cent for the first nine months of the year to nearly 181,000 vehicles. In the US, Cadillac has sold nearly 96,000 vehicles for the year through to September 30, up 11 per cent.

The aim now is to look to online as a sales point. Cadillac has a virtual showroom called Cadillac Live which Mr Harvey said had rising inquiries through the online showroom.

But he told Reuters that Cadillac will continue to sell and service vehicles through dealers.

By mid-2022, Cadillac plans to launch the first of a wave of EVs starting with a compact SUV called the Lyriq. Mr Harvey said Cadillac has received expressions of interest in the Lyriq from 216,000 people.

“It far exceeded our expectations,” he said.

By Neil Dowling

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