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 that “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 that “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.
Read more: Which is it, already – is US EV demand slowing or growing?
Photo: Buick
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