Nearly half of Buick dealers took buyouts from GM this year instead of committing to selling and servicing EVs.
US Buick dealers jump ship over EVs
Buick is moving to all-electric by 2030, so GM gave its Buick dealers a choice in 2022 – invest money – $300,000 to $400,000, according to Automotive News – to prepare to sell EVs or voluntarily give up their franchise. GM is now going to end 2023 with around 1,000 Buick dealerships across the US – that’s 47% down from 1,958 in January. Plus, the buyout option remains open, so more could follow.
The Buick dealerships opting into electric have previously been responsible for around 20% of the company’s US sales.
Duncan Aldred, vice president of global Buick-BMC, told Automotive News, said, “I’m really pleased with where we are. The network, where we are now, is a good size. It’s with dealers who are focused on the business, who’ve shown that they can recover the volume that the dealers who transitioned away were doing.”
Buick said that around 89% of the US population still lives within 25 miles of one of its dealerships.
Electrek’s Take
GM spokesman Sean Poppitt told the Detroit Free Press, “The average dealer throughput tripled – while reducing 47% of our dealer points. These are compelling numbers; we have a leaner, stronger, and more effective network.”
So that’s why Buick doesn’t appear to be fazed by this drop in dealerships; they likely anticipated it. The 100% electric by 2030 plan is great, and the auto brand’s strategy is lean and clean. It wants all its dealers to be fully bought into the transition to EVs.
Top comment by Elliot Geno
Why do dealerships exist? Most people would say it is to sell vehicles of course.
But most of a dealership's money is made on maintenance of the vehicle. They only make a couple hundred dollars from the sale of the vehicle. (Unless it is marked up beyond MSRP)
So why do dealerships want to avoid selling EVs? Because EVs represent an existential risk to their existence.
Read more: Which is it, already – is US EV demand slowing or growing?
Photo: Buick
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