General Motors has offered to buy out any of its roughly 2,000 Buick dealers who are unwilling to invest in costly store upgrades to sell and service electric vehicles as part of its path toward full electrification of the Buick lineup, according to The Wall Street Journal.
It follows the announcement in June that Buick will launch its first electric vehicle in 2024 and fully electrify its lineup by 2030. All new vehicles will be introduced under the "Electra" brand and will feature a new logo, the first significant change to the Buick logo since 1990.
“The Buick brand is committed to an all-electric future by the end of this decade,” said Duncan Aldred, Global VP of Buick and GMC, in June. He added, "Buick’s new logo, use of the Electra naming series, and a new design look for our future products will transform the brand.”
Three months later, the news of the buyouts indicates dealership reluctance to make the necessary changes for an all-electric lineup. Facility upgrades, such as vehicle chargers, electrical grid upgrades, and new service equipment, can cost up to $300,000.
"The future dealer requirements are a logical and necessary next step on our path towards electrification," Michelle Malcho, Buick and GMC's executive director of communications, tells PCMag.
Given the high bar, buyouts provide a solution for dealers who are unable or unwilling to make the necessary changes. “Not everyone necessarily wants to make that journey, depending on where they’re located or the level of expenditure that the transition will demand,” Aldred tells The Wall Street Journal. “So if they want to exit the Buick franchise, then we will give them monetary assistance to do so.”
Taking a buyout offer does not necessarily mean that a dealer will go out of business, as all but 13 of the 1,963 Buick dealers in the United States sell multiple car brands also owned by General Motors.