Friday, June 21, 2024
NewsBuick is Offering Buyouts to its US Dealers Ahead of its Electrification

Buick is Offering Buyouts to its US Dealers Ahead of its Electrification

Buick will offer a buyout to all of its 2,000 dealerships in the United States ahead of the arrival of its electric vehicles.

  • Buick will become an entirely electric brand by 2030

  • This will require large investments from each of its dealers

  • Cadillac has already done similar, with close to 150 dealers taking the offer

Buick has announced it will offer to buy out each of its close to 2,000 dealers in the United States ahead of its electrification, which aims to be complete by 2030.

This is because the shift to electric vehicles will require large investments from its dealers in the areas of employee training, charging infrastructure, tooling, and possibly branding in order to comply with the guidelines set up by the company for the years to come.

Buick didn’t say how much each dealer is expected to have to invest over the next few years, but Cadillac dealerships were told the electrification of the brand could cost them around $200,000.

Obviously, not every dealership is ready to invest such high sums in their business either due to a lack of funds or due to their reticence toward electric vehicles.

This is why General Motors offered to buy out Cadillac dealers a while ago and now Buick dealerships as well.

In the case of Cadillac, about 150 of its 880 American dealerships decided to take the offer and abandon their franchise. Buick hasn’t said how many dealers it expects to depart, but considering the brand has more dealers than Cadillac to begin with, it could lose more than 150 of them soon.

Interestingly, the buyout agreement doesn’t stop the dealership from selling other GM brands such as GMC, which is the brand most commonly paired with Buick in GM showrooms across the United States. Only 13 dealerships in the US sold only Buick vehicles at the start of the year.

Buick will introduce its first electric model on the North American market in 2024 and others will follow soon after in order to replace the brand’s entire lineup with EVs in the six years following.


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