General Motors Acquires Nearly Half of Buick Dealerships Opting Out of Selling Electric Vehicles (EVs)
As the carmaker prepares to switch to electric vehicles, General Motors acquired around half of the Buick dealers nationwide because they were reluctant to offer EVs.
Fifty percent of GM’s two thousand Buick dealers agreed to the buyout on voluntary terms. With GM intending for all of the brand’s cars to be electric by 2030, the program is still open, giving other dealers the option to accept the buyout rather than incur the EV-related costs that GM demanded of them to keep selling Buicks.
The firm is changing, launching the best cars the brand has ever had, and is the fastest-growing mainstream brand in 2023, a company spokeswoman told FOX Business in a statement. The smoothest possible customer experience throughout the switch to electric vehicles is required to enable all of this.
“As stated before, this year we’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way; with the full support of our National Dealer Council,” said the statement.
The Wall Street Journal reported last year that GM had informed its network of Buick dealers that they had to give up the Buick franchise or invest at least $300,000 to support the selling and servicing of electric vehicles, including staff training and the installation of EV chargers. As a result, GM had started to plan buyouts for its Buick dealers.
Despite a 47% decrease in dealer points, the corporation reported in its statement that Buick sales have increased by over 60% this year. Nearly 90% of Americans, it was stated, reside 25 miles or less from a Buick dealer, ensuring their access to parts and maintenance should not change.
Although they can still sell cars from other GM brands, including Chevrolet or GMC, dealers who have accepted the purchase will no longer be able to offer Buick vehicles.
By 2020, the number of Cadillac dealerships in the network had decreased by almost one-third as a result of a buyout program implemented by GM, the brand’s parent corporation.
Recognizing the EV movement has been difficult for some car dealers. In light of the comparatively low demand for EVs at the moment, a group of more than 3,000 dealers wrote President Joe Biden an open letter last month pleading with him to “tap the brakes” on EV obligations.
“These vehicles are ideal for many people, and we believe their appeal will grow over time,” the sellers stated. But the truth is that the big influx of BEVs (battery electric cars) that the current restrictions are causing to arrive at our dealerships is outpacing demand for electric vehicles. On our properties, BEVs are piling up.