Pointers at Glance
- General Motors (GM) offers buyouts to Buick dealers not interested in investing in electric vehicles.
- GM took this move to accelerate the company’s electric vehicle plans and transform its sales network.
General Motors (GM) offers buyouts to the Buick dealers in the United States who don’t want to invest in the brand’s transition to offer all-electric vehicles (EVs) domestically by 2030 exclusively.
The buyout offers, outlined to Buick dealers Friday, are the recent efforts by GM to accelerate the company’s electric vehicle plans and transform its sales network.
Duncan Aldred, global head of Buick, told The Wall Street Journal that All of Buick’s roughly 2,000 US franchise dealers would be allowed to take a buyout. He also said that not everyone wants to make that journey, depending on where they are located or the level of expenditure the transition will demand. So, if they want to exit the Buick franchise, we will give them monetary assistance.
Michelle Malcho, a company spokeswoman, confirmed the buyout plans but declined to disclose the expected cost or how many dealers GM expects will take the offer. Many Buick dealers also sell GMC vehicles or other of GM’s US brands.
The company offered similar buyouts to Cadillac dealers in 2020. About 320 of those 880 retailers accepted the offer rather than assume expectations to invest at least $200,000 toward upgrading dealerships for electric vehicles (EVs).
Buyout offers for Cadillac dealers ranged between $300,000 and $1 million, a person familiar with the plans. Malcho refused to disclose how much Buick dealers would be offered.
Buick’s EV plans are part of GM’s broader $30 billion investment into electric vehicles by 2025. That investment is anticipated to lead to about 30 new EVs worldwide from the automaker, which has pledged to offer electric vehicles by 2035 exclusively.