Buick Not Buying Into Electric Vehicles, So GM Is Buying Them Out
Buick dealerships who do not want to invest in GM's all-electric future are able to take a buyout or keep riding into the future.
Electric vehicles are more than on their way. And, if General Motors has anything to say about it, they’re here to stay. Moreover, if Buick dealerships aren’t on board with the plan, GM will buy them out. The dealerships must opt-in to offering only electric-powered vehicles by 2030 as part of a larger all-encompassing plan for the future.
Buick, Move Up, Or Move On
Buick dealerships received information about the buyouts today, Friday, September 2. The buyouts give owners a chance–and monetary support–to move on from the business. Investing in an all-electric future could cost them up to $200,000 in updates to their facilities.
According to Duncan Aldred, global head of Buick, “Not everyone necessarily wants to make that journey, depending on where they’re located or the level of expenditure that the transition will demand. So if they want to exit the Buick franchise, then we will give them monetary assistance to do so,” he said
Many Buick dealerships already sell GM vehicles or another one of GM’s brands. This is simply because GM does own Buick and other brands. The brand reports that General Motors has a laser-like focus on zero tailpipe emissions, putting their Buick dealerships on notice.
Buick is Looking Back to Move Forward With The Electra
Buick had the car industry buzzing earlier this year when it announced that it would bring back the famous “Electra” line from 1962. The modern electric Electra is due in 2024. Buick has been quoted as saying, “The Electra is “isn’t just a single model but rather the name an entire line of future all-electric SUVs.”
Buick isn’t spilling many secrets, but the line likely won’t resemble the Electra from the 1960’s. The entire line will be Sport Utility Vehicles. (‘SUV’ only became a widely accepted term in the early 1980’s) GM and Buick had to reach into the past to re-up their trademarked name, Buick Electra, which sat dormant for years. The automaker applied for the trademark in December of 2021, signaling this year’s newest strategy.
But, the question remains of how many Buick dealerships want to jump ship. It was reported that GM offered 2,000 of its luxury brand dealerships the buyout option. GM offered buyouts to Cadillac dealerships two years ago. About 17% of the 8800 retailers accepted the offer.
The Future’s So Bright …
The brand’s fairly aggressive approach to getting all their sub-brands offering only electric vehicles by 2035 is a $30 billion investment. The electric cars will still be produced in its Detroit factory. Factory Zero was founded in 1980 as a symbol of the shift from gasoline engines to batteries. GM has been ready for this moment for more than 40 years.
One of the biggest hurdles Buick and GM face as it evolves to creating all-electric vehicles is obtaining computer chips from Asia. The company is finally seeing some progress as supply chains slowed to almost a complete halt during the COVID-19 pandemic. However, as Tell Me Best reported, many global issues are hindering the supply chain.
All Electric, All The Time
In a long journey to get to an all-electric mode of transportation, electric vehicles will pave the way for a cleaner future. According to Tell Me Best, Honda is also honing in on an all-electric lineup. GM and Buick won’t be the only brands out there buzzing about the future. You can count on that.
