About 50% of Buick dealerships opted for General Motors’ buyout packages this year, choosing financial security over the challenge of marketing and supporting electric vehicles.
US Dealers Rebel Against Buick’s Electric Vehicle Shift
General Motors has announced that its Buick brand will transition to an all-electric lineup by 2030, prompting the company to provide dealerships with a choice: invest between $300,000 and $400,000 to adapt their sales strategies for electric vehicles (EVs), or voluntarily relinquish their franchise. General Motors aims to conclude 2023 with a significant reduction in its network of Buick dealerships across the US, ultimately finishing with approximately 1,000 outlets – a drastic 47% decline from the initial tally of 1,958 in January. However, the buyout option remains available, allowing others to participate as well.
Buick’s dealerships that have opted into electrification have historically accounted for approximately 20% of the company’s overall US sales.
Duncan Aldred, vice president of Worldwide Buick GMC, stated, “I’m actually pleased with where we are.” In this complex reality, our community thrives as a harmonious and productive entity. It involves collaborating with sellers who have a focus on the corporate sector and have demonstrated the ability to outperform those who have shifted their attention elsewhere.
According to Buick, approximately 89 percent of American residents still reside within a 25-mile radius of one of its dealership locations.
Electrek’s Take
According to GM spokesman Sean Pappalardo, “Our common vendor throughput tripled, despite a 47% reduction in vendor factors.” These statistics demonstrate a transformed community that has become leaner, stronger, and more efficient.
Given the decline in dealerships, it’s no surprise Buick appears unfazed – they likely anticipated this outcome. The proposal to achieve a 100% electric fleet by 2030 has merit, with the automotive sector’s innovative approaches clearly outlined. The company strives for all its sales representatives to be fully committed to the shift towards electric vehicles.
As electric vehicle (EV) sales in the United States continue to defy expectations, a lingering debate persists: Is demand for these vehicles slowing or surging?
