DEARBORN – General Motors revealed on Friday that it is providing buyouts to U.S. Buick dealers who don’t want to engage in the brand’s shift to only selling domestically produced all-electric vehicles by 2030.
The buyout offers are the most recent initiatives by GM to speed up the company’s electric vehicle aspirations and change its sales network, and they will be presented to Buick dealers on Friday.
According to Duncan Aldred, the company’s worldwide chief, every one of Buick’s nearly 2,000 U.S. franchise dealers will have the option to accept a buyout, according to The Wall Street Journal.
Depending on where they live or the amount of money the transition will cost, he said, “Not everyone necessarily wants to undertake that journey.” Therefore, if they decide to leave the Buick franchise, we will provide them with financial support to do so.
Michelle Malcho, a business spokesperson, confirmed the buyout plans to CNBC on Friday but would not say how much it would cost or how many dealers she expected to accept the offer. Numerous Buick dealers also offer GMC automobiles or those from another of GM’s American brands.
In 2020, the business provided Cadillac dealers with comparable buyouts. Of those 880 merchants, about 320 chose to accept the offer rather than go ahead with plans to upgrade their dealerships for electric vehicles for at least $200,000 in total.
According to a person familiar with the arrangements, buyout offers for Cadillac dealers ranged from approximately $300,000 to more than $1 million. Malcho steadfastly refused to say how much Buick dealers would receive.
The EV ambitions for Buick are a part of GM’s overall $30 billion commitment in electric vehicles by 2025. The automaker, which has committed to selling only electric vehicles by 2035, anticipates that this investment will result in the production of around 30 new EVs globally.