General Motors has started moving all of its brands toward electrification. One such automaker is Buick, which will launch its first electric SUV in the next few years. Following this, the brand announced that it would only sell electric vehicles after 2030. With this news in mind, many traditional dealers are not ready to make this change and want to stick with electric vehicles. fossil fuels. As a result, Buick is offering a buyout to all dealers who don’t want to sell electric cars.

Buick goes electric

The Buick Wildcat EV concept | Buick

According to Car and Driver, Buick will unveil the first all-electric Buick in 2023. The Electra will officially arrive in 2024 as a 2025 model year. C/D says it should share a lot with the previously revealed Buick Wildcat concept (pictured). -above). With electrification on the rise, seasoned automakers like Buick aren’t going to stop at just one model. The GM brand plans to move its entire lineup towards electrification, producing only electric vehicles from the 2030 model year.

In addition to EVs, the brand will only sell electric SUVs. This means that no new Buick sedans will return to the lineup. Also, news like this can spook dealer groups. Not only because of the move to a full inventory of electric vehicles, but also the costs that come with it. However, this particular brand of General Motors is ready for action.

Buick will buy out dealerships that don’t want to sell electric vehicles

A silver 2022 Buick Enclave mid-size luxury SUV.  Why aren't more people buying one of Consumer Reports' top-rated models?
2022 Buick Enclave | Buick

Some traditional dealerships have expressed reluctance to switch to an all-electric vendor. This is true for many more automakers than GM or Buick. As a result, Buick is acting against it, announcing that it will buy dealers who refuse to go down the electric vehicle route.

“Duncan Aldred, global vice president of Buick and GMC, revealed to the Wall Street Journal this week that all of the more than 1,900 Buick dealerships in the United States will be receiving buyout offers for those who don’t want to be part of the change in the brand to only sell electric vehicles,” Car and Driver reported.

While it might seem silly for a Buick dealership to refuse to sell the latest Buick product, it’s a bit more complicated. For example, dealerships must equip their locations with charging stations and other upgrades. How can it be called an electric vehicle dealer without suitable charging locations?

Additionally, dealer technicians need EV certification, which will require extensive training. Therefore, paid training for existing technicians, as well as the time wasted not working on dealership cars, could be more expensive than charging stations. Although used cars will remain the same, with new car sales being all electric vehicles, all technicians will need to know how to work on them.

How can Buick buy its own dealerships?

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If you’re not familiar with the franchise world, it’s a bit like franchising a fast food restaurant. Dealer groups, or sometimes single dealers, are usually owned by an individual or family. From there, they must build relationships and pay manufacturers to fill their stores with new inventory. As a result, there are always those who disagree with the actions the brand they rely on takes.

Electrification is one of those things, as you might have guessed. While many won’t want to invest money in certified EV chargers and technicians, others just don’t like EVs. We’ve all come across more traditional drivers or car enthusiasts who don’t want to move away from fossil fuel vehicles. Regardless of their reasoning, this particular automaker offers them a way out. Instead of arguing or forcing a dealer to sell only electric vehicles, a buyout is on the table for each participating location.

In conclusion, this acquisition of Buick is the first we hear about. However, many automakers are moving towards full electrification within the decade. As a result, we expect more news like this to surface sooner rather than later. Buick is the first automaker to give its dealerships a way to sell more than just electric vehicles, by offering to buy every location instead.

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