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Johnson Motor Company “cashed out” of its franchise deal with Cadillac

ABD has learned Johnson Motor Company of Georgia received a settlement from the Cadillac corporation to end its’ franchise agreement in late July while still in effect.

Johnson was located at 1122 Walton Way in downtown Augusta and closed after nearly 86 years in the automotive sales and service business.

Owners of the dealership, which opened in 1936 on Telfair Street, chose to close to avoid investing up to $200,000, which would be needed to meet Cadillac’s standards for selling and servicing electric cars. Part of that investment would cover the installation of charging stations and required employee training. Instead, Duncan Johnson Jr, President of the Johnson Motor Company chose to accept a “buy-out.”

About 20 employees were affected by the closing. It is not known how many transferred to Johnson Motor Company of South Carolina located at 490 Jefferson Davis Highway in Graniteville.

That dealership remains open and sells Chevrolets, Buicks and GMC’s with no requirements to retrofit the dealership to sell or service electric cars.

ABD’s also learned that other Cadillac franchisees around the U.S also have decisions to make during their existing agreements—invest up to $200,000 to be electric car ready or accept a buy-out offer to give up their franchise.

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