Monday, May 27, 2024
NewsGMC Not Planning Cadillac-Style Dealer Buyouts: Report

GMC Not Planning Cadillac-Style Dealer Buyouts: Report

Half of GMC dealers have signed on to Hummer EV

  • GMC VP says brand taking different route to EV

  • Around half of GMC dealers on board with Hummer EV

After nearly 20 percent of US Cadillac dealers reportedly accepted a buyout to trade their franchise for cash instead of selling EVs, the VP of GMC has said that there is no similar plan for stores selling that brand’s vehicles.

“We will not be going down a similar strategy as Cadillac,” said Duncan Aldred, vice president of global Buick and GMC, said, reports Automotive News.

Cadillac dealers took buyouts said to range from $300,000 to $500,000 while Cadillac moves toward an all-electric brand by the end of the decade.

Things aren’t set to move so quickly at GMC, which sold more than four times as many vehicles as Cadillac in the first three quarters of this year. More importantly, most of GMC’s sales are pickup trucks and the Yukon SUV, whereas most of Cadillac’s sales are smaller crossovers; a segment easier to electrify.

The report says around half of GMC dealers have committed to selling the 2022 Hummer EV pickup, including updating their facilities to do so. GMC is currently readying the Hummer EV for winter testing, Aldred said. General Motors is expecting to release at least 30 EVs by 2025, but there’s still little news on the progress of GMC and electrification targets. Other models built on the Hummer EV platform are expected but are still just rumour at this time.

This slower EV ramp could be an easier pill to swallow for the close to 2,000 GMC dealers, but unlike at Cadillac, where many stores were said to sell just a few dozen vehicles a year, GMC dealers have Sierra and Sierra HD pickups to move, including the highly profitable Denali and AT4 models.



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