GM is providing to purchase out Buick dealerships that do not need to spend money on electrical autos
Billboards at the Ziegler Cadillac, Buick and GMC dealership in Lincolnwood, Illinois, USA. U.S. General Motors Co.
Joel Lerner | Xinhua News Agency | Getty Images
DETROIT — General Motors is offering buyouts for U.S. Buick dealers that don’t want to invest in the brand’s transition to offering domestic-only all-electric vehicles by 2030, the automaker confirmed on Friday.
The buyout offers, which will be outlined to Buick dealers Friday, are GM’s latest effort to accelerate the company’s electric vehicle plans and transform its dealership network.
All of Buick’s roughly 2,000 US franchised dealerships will be given an opportunity to complete a buyout, Duncan Aldred, Buick’s global head, told The Wall Street Journal.
“Not everyone necessarily wants to make this journey, depending on where they are or what the expenses the transition will require,” he told the publication. “So if they want to exit the Buick franchise, we will give them financial support to do so.”
Michelle Malcho, a company spokeswoman, confirmed the buyout plans to CNBC on Friday, but declined to disclose expected costs or how many dealers GM expects to take up the offer. Many Buick dealers also sell GMC vehicles or another US brand of GM.
The company offered similar buyouts to Cadillac dealers in 2020. About 320 of those 880 retailers accepted the offer, rather than anticipating investing at least $200,000 to modernize EV dealerships.
Buyout offers for Cadillac dealers have ranged from about $300,000 to more than $1 million, a person familiar with the plans previously told CNBC. Malcho declined to disclose how much Buick dealerships would be offering.
Buick’s EV plans are part of a broader $30 billion investment by GM in electric vehicles through 2025. That investment is expected to result in about 30 new electric vehicles worldwide from the automaker, which has committed to becoming an all-electric vehicle by 2035 .
Editor’s Note: This article has been updated to reflect the correct number of retailers accepting buyout offers from GM.