Buick offers to buy out dealers who don’t want to make the switch to electric cars

Photo: Buick

The Wall Street Journal reported that Buick is offering to buy out dealers who don't want to invest in electric vehicles.

The Buick franchise dealers in the US will be given the chance to take a buyout, according to the Global Buick chief. The Buick brand will no longer be affiliated with the dealer and they will not be able to sell Buick vehicles.

The goal is for Buick to sell 100 percent electric by the end of the decade. It will require dealers to spend a lot of money to upgrade. The shift to EV sales will fundamentally change how dealers do business, and many dealers are hesitant about it.

Some evidence suggests that dealers are less than thrilled about having to change their business model to accommodate a new class of vehicles. Many car dealers are stuck in their ways because of that.

According to the survey, the majority of respondents were unhappy with President Joe Biden's full-throated support for EVs, which still represents less than 10% of overall sales.

Dealerships are required to upgrade their stores to accommodate charging stations and equipment for electric vehicles. The improvements can run into the hundreds of thousands of dollars per dealership.

There is a growing rift between franchise dealers who enjoy a lot of state-level political support and direct-to-consumer brands who do not.

This isn't the first time that GM has offered a buy out. Cadillac dealers who didn't want to invest $150,000 in upgrades to sell the new lyriq EV could take a buyout. The process ended last year, with GM reporting that around one third of the dealers took the offer.

Buick is going to roll out its first EV in 24 years. All of GM's brands will be EV-only by the year 2035. The Chevy Bolt and the Chevy Bolt EUV are the only electric vehicles available for sale in the US. Next year, the company plans on rolling out a number of new products. The sedan is sold in China in partnership with the SAIC.