“Buick plans to continue offering buyouts, which have cost GM about $1 billion so far, into next year. The average sales of Buick’s remaining stores still trail those of GM’s GMC brand, which shares showrooms with Buick.”
General Motors has reduced the number of Buick dealerships in the U.S. by around 50% through a voluntary buyout program.
Buick plans to continue offering buyouts, which have cost GM about $1 billion so far, into next year. The average sales of Buick’s remaining stores still trail those of GM’s GMC brand, which shares showrooms with Buick.
A majority of the dealers who accepted buyouts were smaller stores, which accounted for only about 20% of Buick’s annual sales. As part of the buyout offer, the company provides payments to the dealers to close their businesses.
The Buick buyout proghttps://www.foxbusiness.com/markets/gm-bought-out-nearly-half-buick-dealers-who-opted-against-selling-evsram for its 2,000 US dealerships began last year as the automobile brand prepares to transition to offering only electric vehicles in the US by 2030.
Dealers must invest in EV training, tools, and special equipment. Buick in its Buick buyout program declined to disclose specific costs, which may vary based on dealership size and scope.
Duncan Aldred, global head of GM’s Buick and GMC brands, said, “The 1,000-store reduction aims to increase the amount of sales per location, or throughput, and profits at the remaining dealers. The buyouts also allow dealers who don’t want to invest in electric vehicles to get out of the business. What this is enabling us to do is triple the throughput of the remaining dealers. I think it’s fair to say that I’m really pleased that we achieved it.”
Buick Provides Gasoline-powered Crossovers and SUVs instead of EVs
Buick currently does not offer an electric vehicle in the United States. Their current lineup includes four gasoline-powered crossovers and SUVs, with starting prices ranging from approximately $22,400 to $43,900.
Buick’s sales in the United States are improving after being hit by the pandemic and supply chain disruptions. In the third quarter, the brand’s sales surged by 63% compared to the previous year’s sluggish levels. In 2022, Buick sold less than 104,000 vehicles, whereas in 2018 and 2019, it sold roughly 207,000 vehicles before the pandemic hit.