Buick Dealers Fleeing the Net Zero EV Revolution
Dealers accepting the buyouts declined to invest hundreds of thousands of dollars to sell and service General Motors’ future electric vehicles.
Buick Dealers Fleeing the Net Zero EV Revolution
Essay by Eric Worrall
h/t Breitbart; “… we’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way …”
GM buys out around half of its Buick dealers
Dealers accepting the buyouts declined to invest hundreds of thousands of dollars to sell and service General Motors’ future electric vehicles.
Published Dec. 21, 2023
General Motors has bought out around half of Buick dealers that declined to invest at least $300,000 to sell and service its future electric vehicles, a company spokesperson confirmed in an email.
Dealers accepting the buyout will no longer sell Buick vehicles, but they can continue to sell GMC and Chevrolet brand vehicles, according to the Wall Street Journal.
The buyouts come as GM significantly scaled back its EV rollout as the company deals with weak demand, manufacturing delays and low margins on EVs. Buick has no electric models on the market, but GM plans to transform the luxury brand into an EV-only brand by 2030.
Dive Insight:
The investment by dealers is intended to cover the costs of installing EV chargers, training staff to service EVs and other initiatives, according to the Wall Street Journal. Before the buyouts, GM had roughly 2,000 Buick dealers. However, a GM spokesperson told the WSJ that most Buick dealers have made the required upfront EV investments. As a result of the buyouts, GM said it will have around 1,000 Buick dealers left.
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“This year we’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way; with the full support of our National Dealer Council,” a GM spokesperson said in an email.
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As a small business owner I can imagine the anguish of dealers opting to give up businesses they have built over the years rather than follow GM into their high risk EV gamble. Running a business is more than a job, it is a labor of love – something you put your heart into, part of your identity as a person.
I’m guessing the dealers who accepted the buyouts felt they had no choice.
It is unlikely the $300,000 required investment to retool for EVs is the reason automobile dealers left the industry. There is big money in automobiles, a friend who runs a repair shop and towing service in a country town makes well north of $100,000 per month. The only reason I can think of for business owners bailing over a $300,000 mandatory investment is if the dealers thought they would lose a lot more than $300,000.
GM might have the political pull to demand and receive fat taxpayer bailouts when management incompetence drives the company into bankruptcy. Small independent automobile dealers not so much.
First Ford dealerships opting out of EVs and now Buick.