HomeNewsBuick US Dealers Required To Invest $300,000-$400,000 To Sell EVs

Buick US Dealers Required To Invest $300,000-$400,000 To Sell EVs

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By the end of this decade, Buick plans to have an all-electric lineup in both the US and Canada–a feat that requires dealers to play a critical role. The success of their transition into EVs depends on these professionals.

Earlier this year, GM’s Buick brand declared it would offer buyouts to its American dealers who do not wish to put money into showroom improvements and charging infrastructure. Now, the company has provided greater insight into what stipulations its sellers must satisfy to be able to sell electric vehicles.

Automotive News received a statement from Buick spokesman Sean Poppitt, who declared that dealerships committed to the brand must invest at least $300,000-$400,000 for any electric vehicles (EVs) they intend to sell. He further indicated that this expenditure is an estimated average and will depend on the individual store’s needs for tooling, training, and other EV equipment.

Emphasizing the significance of staying prepared to sell and service Buick EVs, Poppitt declared that acceptance is voluntary but all dealers must still be well-equipped.

Buick emphasizes the importance of its dealer network in developing relationships with customers, yet recognizes that some may not share its all-electric vision. Thus, they are allowing dealers to exit voluntarily before investing time and resources into training, tools, and special equipment.

At present, Buick has declined to disclose how many dealerships have taken advantage of the buyout offer. With 1,963 US dealers at the beginning of 2022 according to Automotive News’ Dealer Census, only 13 were standalone franchises; all others partnered with another GM brand. For those interested in this program, it’s encouraged that contact the Buick team directly for further assistance and details.

In 2024, Buick will make its debut in the electric vehicle arena. As a result of this endeavor, they plan to completely phase out their gasoline-powered vehicles by that same year. When it comes to designating each model within their EV lineup, names such as Electra (followed by an alphanumeric code) are currently being considered.

In a strategy comparable to Cadillac, Buick is offering dealerships the opportunity of buyouts and up to $500,000 in compensation. Around 300 US Cadillac dealers decided on such an offer with the mandatory investment of approximately $200,000 for selling and maintaining electric vehicles. Allowing for this transition towards electrification by 2030 will guarantee that these companies can keep up with modern demand.

Source: Automotive News

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