GMC doesn’t provide buyouts to sellers who don’t wish to promote Hummer electrical automobiles
2022 GMC Hummer EV Sport Utility Truck “Edition 1”
DETROIT – General Motors does not plan to offer buyouts to GMC dealers like it does for Cadillac franchisees who do not want to invest in stores to sell all-electric vehicles.
GMC vice president Duncan Aldred said the brand is pursuing a “very different strategy” for electric vehicles than Cadillac. About half of GMC’s 1,695 dealers have agreed to invest and sell electric vehicles, starting next fall with the brand’s Hummer EV pickup.
“We will not have a strategy similar to Cadillac,” Aldred said Tuesday during a virtual media event. “The role at Hummer EV is that it is a dealership participation agreement. It is optional for every dealer.”
The Hummer is the brand’s first fully electric vehicle. It is also the debut vehicle for GM’s next generation Ultium batteries and architecture. Three more electric vehicles, including an SUV version of the Hummer and another pickup truck, are expected for GMC as part of a plan previously announced by GM to invest $ 27 billion in electric and autonomous vehicles by 2025.
GMC believes more dealerships could agree to sell electric vehicles as soon as more information about the vehicles becomes available, Aldred said. The cost to dealers to sell the Hummer EV varies by store, according to Aldred.
Phil Brook, GMC vice president of marketing, said GMC is urging dealers to invest “for the basics,” including training and charging infrastructure.
According to Aldred, GMC expects spending for “the vast majority of traders” to be “much less than the reported top stop number”. It was at least $ 200,000 for Cadillac to upgrade dealerships and provide the necessary training, according to Automotive News.
About 150 Cadillac dealerships accepted acquisitions when the Detroit automaker directed the luxury brand to direct its all-electric vehicle efforts, a person familiar with the details confirmed to CNBC.
There are a few reasons why buyouts make more sense for Cadillac dealers than GMC, including GMC’s plan for Cadillac to lead its EV efforts.
Much, if not all, of its Cadillac cars and SUVs sold worldwide are projected to be electric vehicles by 2030. This means that unlike GMC, which is expected to have a mix of electric vehicles and vehicles with vehicles, Cadillac dealers will have to use all-in electric vehicles for the foreseeable future.
GM has also tried for years to reduce the number of its Cadillac dealerships to be more in line with other luxury brands. Many GMC franchises also share rooftops and operations with other brands, particularly Buick franchises. If GMC were dropped, many dealers would have significantly less sales and revenue.
GMC announced Tuesday that it is producing prototype Hummer electric vehicles for on-vehicle validation testing, which will soon begin winter testing in northern Michigan.
GM presented the new Hummer in October as a fully electric “super truck”. A starting version called “Edition 1” will be available next year at around $ 113,000. In the coming years, cheaper models are expected.