GM offers to buy back US Buick dealers
General Motors Co said on Friday it will provide all of its estimated US$2,000 Buick Franchising authorized dealer shop as they move towards making the brand all-electric by 2030 in the United States.
The Wall Street Journal reported earlier, citing Duncan Aldred, director of Global Buick, who will discuss the plan with dealers on Friday in a virtual meeting. He notes that the switch to electric vehicles will require a significant investment by Buick dealers.
“So if they want to get out of the Buick franchise, then we give them monetary support to do it,” Aldred told the paper.
Buick said in June it plans to introduce its first EV in 2024, but did not provide specific details.
“Future dealer requests are the logical and necessary next step on our path towards electrification to ensure our dealers are prepared to sell and service exclusive vehicles.” this in a reasonable way”, a GM Spokesperson told Reuters Friday.
Last year, GM’s Cadillac brand said it was shrinking its dealer network as it switched to electric vehicles, saying it had nearly 40% fewer dealerships in the US than it did in 2018.
GM has placed a total of $274 million in costs between 2020 and 2021 related to efforts to acquire Cadillac dealers who are not willing to invest $200,000 to $500,000 per store in equipment and digging created to support the brand’s transition to all-electric vehicles, which is planned by 2030.
Buick dates back almost 120 years – 5 years before GM was founded in 1908 – to an era when Electric Car Briefly, gasoline-powered models outsold the United States. All Buicks sold at the time ran on gasoline.
Future Buick tram in the United States and China will bear the name Electra, dating back more than 60 years, along with alphanumeric symbols.
(Reporting by David Shepardson)