Saturday, June 15, 2024
NewsGM Wants to Use Costco Auto to Help Drive EV Sales

GM Wants to Use Costco Auto to Help Drive EV Sales

GM looking at new ways to move EVs

  • Costco Auto facilitates 500,000 sales yearly

  • GM believes it can get more EV shoppers through partnership


General Motors is looking outside of the traditional dealership channels to meet EV customers where they are. One of those new outlets is Costco, with GM’s North America President telling CNBC that the automotive giant is working on expanding its sales through the big box store.

“We have a great partnership with Costco, and I’m really bullish on Costco because I like their brand,” GM North America President Marissa West told CNBC during a recent interview. “I am encouraging the team to see how we can build this partnership.”

While GM is one of several automakers to partner with Costco in the U.S., it is the exclusive Costco Auto partner in Canada. West called EVs a “huge opportunity” to expand its reach with Costco members.

According to Costco, its Costco Auto service, a third-party that acts as a negotiating middle-man between customer and dealer, is averaging 500,000 sales per year. That’s more than three percent of U.S. vehicle sales.

The report says that seven percent of member requests to Costco Auto were EV related in 2023. It said its members are more into EVs than average consumers, and called it “a great way” for automakers to showcase EVs.

GM is currently offering U.S. Costco members $1,000 off on some of its EVs including the Chevrolet Equinox and Blazer. It applies on top of existing dealer incentives.

 

 

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