LOUISVILLE, Ky. (WDRB) – Brown Bros. Cadillac, a staple of downtown Louisville for more than 75 years, will close for good in mid-February after the dealership’s owners decided to take a buyout of their franchise from General Motors rather than spend about $250,000 installing charging stations and other changes necessary to sell electric cars.
Co-owner Gary Brown, 68, and his brother Bruce, 64, decided to take the undisclosed buyout after a brutal year for the business at Fourth Street and Broadway, Gary Brown told WDRB in an interview.
“Cadillac made what I thought was a fair deal, and it was based on what I thought was some common sense,” Brown said. “You sort of felt like, the handwriting was on the wall. We have had a great run. We’ve had thousands of loyal customers. You’ve got to be grateful.”
Brown Bros. said on its Facebook page last month that it planned to end its Cadillac affiliation, but it was unclear if the dealership would continue selling other cars. Brown didn’t respond to WDRB’s requests for comment until Tuesday.
The Wall Street Journal reported in December that GM had made buyout offers ranging from about $300,000 to $1 million to about 150 Cadillac dealers who didn’t want to make the electric car upgrades. Brown said he’s contractually obligated not to disclose the buyout.
The Detroit automaker said late last month that it plans to phase-out all gas-powered vehicles by 2035, moving fully to electric cars.
Brown said he thinks the auto industry will eventually transition to electric vehicles, but he wonders how aggressively GM will shift within the 15-year window.
“I think the big question is, how fast they will proceed … Do you start out slowly and let people get used to the idea and embrace it? It’s hard to be in front of the market,” Brown said.
Brown said it didn’t seem “prudent” to make the electric car investments after a dismal sales year amid the pandemic.
He also said it was clear that GM viewed the Louisville market as having only one Cadillac dealer who would have to be located eastern Jefferson County suburbs, a more typical spot for dealerships. Courtesy Cadillac is off Hurstbourne Parkway near I-64.
Brown Bros. has 37 employees, Brown said.
“The hard part is parting ways with them and saying goodbye to all the loyal customers who have supported us,” he said.
As for the real estate at Fourth and Broadway, Brown said he plans to put it on the market.
