GM loses half of its Buick dealers over EVs
General Motors said nearly half its Buick dealers took buyouts in 2023 rather than invest in selling and servicing electric vehicles as the automaker’s brands transition to all electric by 2030.
That means GM ended the year with about 1,000 Buick stores nationwide, down 47% from where it started in 2023.
Late in 2022, Buick said it would be asking dealers to commit a minimum investment of $300,000 to $400,000 to prepare their stores to sell and service EVs.
“Buick is transforming, launching the best vehicles the brand has ever had and is the fastest growing mainstream brand in 2023,” GM spokesman Sean Poppitt said in an email. “This all needs to be supported by the best customer experience in the transition to EVs. As stated before ... we’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way, with the full support of our National Dealer Council.”
Poppitt said with nearly half the dealerships gone, Buick sales were still up almost 60% in 2023 through November over the year-ago period, which means “the average dealer throughput tripled – while reducing 47% of our dealer points. These are compelling numbers; we have a leaner, stronger and more effective network.”
The buyout program remains open and is voluntary. The brand plans to show its first EV this year and it will be an SUV. All future new electric nameplates will use the Electra name followed by a number.
In 2020, Cadillac offered a similar buyout program for its dealers. Nationally, 170-180 of Cadillac’s 870 dealers, or about 20%, took the buyouts.