While Cadillac’s focus on EVs alienated some longtime dealers, especially in rural areas, interest in the brand by others speaks to their perception of a growing appetite for electric vehicles.

“Dealers are finally seeing the consumer response that electric vehicles [are] becoming more of a request by consumers,” said Dave Cantin, CEO of buy-sell firm Dave Cantin Group.

Decisions to invest in Cadillac are likely based on other factors as well, said Mark Johnson, president of buy-sell firm MD Johnson Inc. Dealers might act on an acquisition opportunity to gain scale or be eager to invest in a new store because the past year has been highly profitable. “Dealers are entrepreneurs, and they’re risk takers,” he said. “For the majority of them, the risk has really worked out.”

For dealer Jimmy Ellis, conversations about a Cadillac point began before an EV-only lineup was on the horizon. One of his stores had Chevy, Buick and GMC, and he wanted to complete the GM portfolio. The transaction was delayed for a variety of reasons, but Jim Ellis Cadillac of Atlanta finally opened last month.

“The timing worked out really well for me because I can see the renaissance of the brand and the direction that they’re going,” said Ellis, president of Jim Ellis Automotive Group in Atlanta.

In Arlington, Texas, Frank Kent Motor Co. is building a $20 million Cadillac dealership to house a franchise it acquired from Group 1 Automotive in January. Frank Kent took a buyout to close a Cadillac store 70 miles away in Corsicana but is eager to grow with the brand in a larger market. The Frank Kent group also has a Cadillac store in Fort Worth.

“We love the brand. We love the manufacturer,” said Will Churchill, one of the group’s owners. “We believe in everything that they’re doing.”

Churchill said he can already sense excitement about the Lyriq among his customers.

“Of all the vehicles that we’ve launched, outside of the Escalade, this one seems to be getting the most positive reception earlier on,” he said. “So it’s exciting to see how that’s going to correlate to sales.”

He’s not completely confident in an all-EV strategy, but Churchill trusts that Cadillac will let consumer interest inform the pace of its rollout. “Is electric going to sell? Absolutely it will. Will it be 100 percent of the portfolio? I don’t think so,” he said. “But if the consumers demand it, then [Cadillac is] prepared to do it.”

This article was originally published on Automotive News. Read the original article linked here.