General Motors said it would offer all of its Buick franchise dealers in its U.S. buyout, The Wall Street Journal reported. announced plans to turn it into a car.
Buick and GMC Global Vice President Duncan Oldred said: WSJMore The move to EVs will require significant investment by Buick dealers.
“So if they want to exit the Buick franchise, we will provide financial support for that,” he said.
Aldred was scheduled to outline the plan in a virtual meeting this afternoon. Aldred noted that for GM to reach his goal of selling only EVs by 2030, it will need to invest heavily in equipment, including charging stations and upgrades.
“Not everyone wants to make the trip, depending on where they live and the level of spending required to migrate.”
“So if they want to exit the Buick franchise, we will provide financial support to do so.”
Future requirements for dealers are important to the company’s electrification goals, according to a GM spokesperson.she said Reuters,
“Future dealer requirements are a logical and necessary next step in our journey to electrification to ensure our dealers are well prepared to sell and service these unique vehicles. is.”
Last year, GM made acquisition offers to Cadillac dealers, and about 150 dealers accepted those offers over investing in EVs. GM told these dealers that to sell his EVs going forward, he would need to make at least $200,000 in upgrades covering EV chargers, tools, and training.
Buick has offered to buy all US dealerships.
Oh my god 🤯
A DTC has occurred.
— CarDealershipGuy (@GuyDealership) September 2, 2022
Direct-to-consumer sales are offered by Tesla, Rivian, Lucid, and several other automakers that sell EVs, bypassing the dealer model. I don’t think the reign of dealerships will end anytime soon, but as the tweet above suggests, it would shock the auto industry if one of his GM brands suddenly started selling direct to consumers. will be
Several states have now banned direct-to-consumer sales, and Tesla is suing Louisiana to overturn that ban. Connecticut dealers have long fought hard to stop Tesla and other EV makers from selling directly to consumers.
If Buick suddenly sells directly to consumers, the places where it can sell are limited at present. However, Buick and GM will likely lobby states to allow direct-to-consumer sales. Will this happen? Probably not. But it would be interesting.
Note: Johnna is a Tesla shareholder and supports its mission.