GM, which was last reported to be interested in acquiring Carvana, has made its final decision to close its lease deal with the dealership, a source familiar with the matter told Mashable.GM, which has been actively exploring ways to expand into the luxury market with a new hybrid vehicle, has a lease agreement with the brand.
But it has been working on a deal with Carvana to acquire the business and expand its offerings in the luxury segment, a company source told Mashables.
The new agreement, which expires in 2019, will give GM access to the brand’s extensive portfolio of luxury cars.
The brand’s new hybrid SUV, the Cadillac ELR, was the company’s fastest-selling vehicle in the United States in 2019.
But the company said that it would have to make major cuts to its sales and profits as the brand struggled to gain traction in the U.S. market.
“We’ve been exploring all options to expand and expand our brand and bring more customers in,” a GM spokesperson said in a statement.
“As a result of this discussion, we have decided to close our lease agreement.
We will be announcing our new plans for our future and will share them in the near future.”
The brand’s luxury vehicle sales in the first quarter of 2019 totaled about 5.5 million, up 13 percent from the same period in the previous year.
That growth was due in part to a number of factors, including a new SUV, a redesign of the company car lineup and a focus on its upscale luxury brand, the spokesperson added.GM has been exploring ways for the company to expand in the premium luxury segment.
The company has already sold its popular crossover SUV, Cadillac XTS, in China.
And it also has plans to expand its luxury vehicle portfolio in 2019 with a redesign and a brand-new SUV.