Of all the changes General Motors has been making the past few years, the biggest by far has been for their Buick brand. And it may be having unforeseen consequences for the American auto industry.
Earlier this month, GM offered to buy out the nearly 2,000 U.S. Buick dealers due to new standards required to sell all-electric Buicks in the future. What are Buick’s new dealer requirements, and how will this change Buick’s presence in the United States?
GM’s Plans for Buick Going Forward
GM announced plans for Buick to sell only all-electric vehicles by 2030. In addition, all of the planned models are going to be SUVs, which creates a unique lineup for the brand. The first vehicle under this new plan, the Buick Electra, is set to be revealed in 2023 and sold beginning in 2024.
To prepare for the release of the Electra, Buick dealers will have to make many changes that could be costly, time-consuming, or otherwise difficult to achieve. With this in mind, General Motors has offered an out to dealers selling Buicks in the United States.
Buyout Options for Buick Dealers
Before a virtual meeting with dealers, global Buick vice president Duncan Aldred spoke to the Wall Street Journal about the offer to buyout dealers. Since storing and selling electric vehicles has different requirements than their gas counterparts, Aldred wanted to discuss the changes Buick dealers would need to make while offering them the chance to decide not to participate.
Spokesperson Michelle Malcho had this to say about dealer expectations for Buick moving forward: “The future dealer requirements are a logical and necessary next step on our path towards electrification to ensure our dealers are prepared to properly sell and service these unique vehicles in order to provide customers an exceptional experience.”
Dealers that want to opt out of selling all-electric Buicks in the coming years will still be able to sell other GM brands, and the buyout offered will support inventory changeover and associated costs.
Buyout amounts and the exact requirements for dealers who don’t take the offer while it’s on the table are currently unclear. Malcho and other GM officials have also refused to disclose estimates of the number of dealers taking the company up on its offer.
The Future of the Brand in the United States
Considering that Buick is the second of GM’s brands to switch to all-electric—Cadillac was the first—and offer buyouts to Buick dealers, it’s safe to assume that the pattern will continue. But what does this mean for the future of Buick in the United States?
The uncertainty and problems surrounding all-electric vehicles may cause a dip in sales. On the other hand, the popularity of SUVs in the states suggests that Buick will do just fine. Buick still has time between now and 2030 to show us what its new plan can do in the rapidly-changing automotive market.
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