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Hey look! The GM dealers don't want the GM EVs!

I mean they REALLY don't want the EVs.

In fact half would rather fold their dealerships than carry those exceptionally awesome POS.

GM Buys Out Half of Its Buick Dealers

Those leaving the network chose not to sell electric vehicles; about 1,000 Buick dealers remain

By Nora Eckert, WSJ

Dec. 20, 2023

General Motors GM 2.24%increase; green up pointing triangle has bought out about half of its 2,000 Buick dealers nationwide, based on their decision to not sell electric vehicles, according to a company spokesman Wednesday.

Dealers who are taking the buyout would give up the Buick franchise and no longer sell the brand, he said. The dealer can continue to sell other GM models, such as Chevrolet or GMC, that often account for a higher percentage of sales.

The Wall Street Journal reported in late 2022 that the automaker planned to offer buyouts to its U.S. Buick dealer network. The move came after the Detroit automaker gave the dealers a choice: Invest at least $300,000 to sell and service electric vehicles, or exit the Buick franchise. The investments would cover EV chargers and worker training, among other initiatives.

The majority of the Buick network has already made the necessary investment, the spokesman said. GM is ending the year with about 1,000 Buick dealers.

GM offered a similar buyout program for its Cadillac brand starting in 2020 that trimmed the luxury brand’s U.S. dealer network by roughly one-third, the automaker has said.

The automaker has given dealers the opportunity to exit from the Buick network voluntarily and with full support of the National Dealer Council, the spokesman said. He added that Buick sales are up nearly 60% this year.

Dealers across the country have expressed concerns about leaning in too much on EVs when customers are worried about the range, reliability and high price of these models.

A group of dealers voiced their hesitations about the government’s role in pushing electric vehicles in a letter last month to President Biden, saying they were worried demand wasn’t keeping up with the influx of new models coming to market.

Automakers have been encouraging a more direct-sales model for EVs, in which buyers purchase the vehicle from the manufacturer or go through a no-haggle process with a dealer. This shift, which executives say will better match supply with demand, also reduces how many battery-powered models are kept on dealer lots.

Ford Motor in late 2022 asked dealers to invest as much as $1.2 million each in store updates, including installing new infrastructure for charging EVs at dealerships. The automaker eased some of these initial requirements recently, saying the company will continue to adapt its overall EV strategy to the changing market.

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