GM Offering to Buy Out Buick Dealers That Don't Want to Sell EVs
【Summary】With Buick set to go all-electric by 2030, General Motors is willing to buy out dealerships that don’t want to invest money into selling Buick’s upcoming EVs.
General Motors has announced that it only wants to sell zero-emissions vehicles by 2035. For GM's brands, that means large changes are in store. Buick, one of GM's luxury brands, declared that it would become an all-electric automaker by 2030. That puts Buick at the forefront of GM's electrification goals and makes the automaker more relevant than ever. Unfortunately, it also puts dealers in an awkward position.
GM Giving Buick Dealers A Way Out
With Buick set to go all-electric, GM will offer all a buyout plan for all of its Buick dealers in the U.S. reports The Wall Street Journal. All of Buick's dealers, which number approximately 2,000 in the country, will be given the opportunity to accept a buyout deal from GM. The buyout gives Buick dealers that aren't interested in making the necessary investments to sell and service electric cars a way out of selling Buicks. Dealers that accept GM's buyouts won't be able to sell Buicks, but will be able to continue selling other vehicles from GM.
The outlet spoke with Global Buick Chief Duncan Aldred that confirmed the buyout plan. As Aldred points out, dealers will be required to invest heavily into their operations. Installing electric car chargers, purchasing the necessary equipment to service EVs, and providing personnel with the appropriate training to sell electric cars is a hefty investment. GM understands that not everyone is interested in making the investment.
"Not everyone necessarily wants to make that journey, depending on where they're located or the level of expenditure that the transition will demand," he said. "So if they want to exit the Buick franchise, then we will give them monetary assistance to do so."
Buyouts For GM Are Becoming Normal
As Aldred claims, investing a large amount of money into ensuring a dealership has everything it needs to sell and service electric cars won't be feasible for a lot of dealers. Dealers in areas of the country where EVs aren't popular won't see a return on their investment for years or decades. All of this also hinges on whether Buick's EVs are competitive in the marketplace, too. The Wall Street Journal claims that making improvements to a facility can require an investment of more than $300,000.
GM didn't provide any information on how many dealers it expects will accept the buyout or what kind of requirements it will force upon dealers that want to sell EVs from Buick. Speaking with Reuters, a Buick spokesperson stated, "The future dealer requirements are a logical and necessary next step on our path towards electrification to ensure our dealers are prepared to properly sell and service these unique vehicles."
A few years ago, GM offered Cadillac dealers with a similar buyout plan. Approximately one-third of GM's Cadillac dealers accepted the buyout. GM spent around $274 million in costs to buy out Cadillac dealers. Reports indicate that GM expected Cadillac dealers to spend between $200,000 to $500,000 on equipment and training to support its move to be an electric brand.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
Ford Looks to Have 100% of EV Sales Be Online
Volkswagen CEO Believes It Will Overtake Tesla in EV Sales by 2025
Report Claims Nissan Leaf Will Be Discontinued by 2025
Autonomous Vehicles Will Require Cities to Change Their Transportation Methods
Rivian, Mercedes-Benz Partner to Produce Electric Commercial Vans
Tesla Believes Its Dojo AI System Will Help It Win the Self-Driving Car Race
Acura Prevision EV Concept Previews Brand’s Electric Future
Federal Tax Credit on EVs Still Applies to American-Made Vehicles
- Zeekr’s New 009 Electric Passenger Van is the World’s First EV to Feature CATL’s Advanced ‘Qilin’ Battery With a Range of 510 Miles
- Volvo is Building a New EV Service and Training Facility at its U.S. Headquarters in New Jersey To Fast Track its Electrification Plans
- Ford is Investing $3.7 Billion and Adding Over 6,200 UAW Manufacturing Jobs in the Midwest to Produce New Vehicles
- LG Chem is Investing $3.2 Billion to Build a Cathode Manufacturing Facility for Electric Vehicle Batteries in Tennessee
- General Motors Announces a Key North American Nickel Supply Deal for Electric Vehicle Batteries
- EV Startup NIO to Launch a New Mass-Market Brand to Rival Tesla with an Annual Capacity of 500,000 Vehicles a Year
- California’s Electric Vehicle Sales for Q1-Q3 2022 Show That Tesla is Facing Growing Competition
- Rivian, Mercedes-Benz Partner to Produce Electric Commercial Vans
- GM’s New Blazer EV Will Take on the Tesla Model Y Performance and Ford Mustang Mach E
- Volvo Cars and Epic Games to Partner on a High-Resolution 3D Digital Driver’s Display Powered by the Unreal Engine