1/2 of Buick dealerships accepted GM 'buyout' to avoid selling Electric Cars

[Melensdad]

Well if EVs are the future you'd think this would be crazy.

But EVs are apparently not money makers for dealerships, which make lots of follow up income on maintenance and repairs as cars age. EVs are a different type of maintenance income math for dealerships. Especially RURAL dealerships. And GM also would require dealerships to install charging stations, certify mechanics and incur other up front costs that apparently seems unattractive to roughly 50% of the Buick dealerships across this nation.

There was a prior thread talking about how FORD reduced its dealership requirement that mandated a set number of EV charging stations and other costly upgrades. By doing so Ford ended up not buying back as many dealerships, but seems like Buick losing 1/2 its dealers might be problematic, unless it does a full change and adopts a Musk/Tesla business model?

https://www.wsj.com/business/autos/gm-buys-out-half-of-its-buick-dealers-6b9eefcc

^^^^ FULL STORY at the link ^^^^

GM Buys Out Half of Its Buick Dealers​

Those leaving the network chose not to sell electric vehicles; about 1,000 Buick dealers remain​

Nora Eckert​

Dealers taking a buyout would give up the Buick franchise and no longer sell the brand. Photo: Daniel Acker/Bloomberg News​

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has bought out about half of its 2,000 Buick dealers nationwide, based on their decision to not sell electric vehicles, according to a company spokesman Wednesday. ​

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Dealers who are taking the buyout would give up the Buick franchise and no longer sell the brand, he said. The dealer can continue to sell other GM models, such as Chevrolet or GMC, that often account for a higher percentage of sales.​

 

[FrancSevin]

Like Pontiac and Oldsmobile, Buick is a dying brand. I see it phased out by GM in two-three years.

Sadly, it is, it was, a good product.

 

[Melensdad]

Like Pontiac and Oldsmobile, Buick is a dying brand. I see it phased out by GM in two-three years.

Sadly, it is, it was, a good product.

From what I understand, GM's plan was/is for them to have Chevrolet as the entry brand (Kia/Subaru), Cadillac as the premium brand (Genesis/Lexus/Audi/M-B) and Buick was to be the middle brand sitting in between (Hyundai/Toyota/VW/Honda). It was also supposed to go 100% electric. It was also supposed to go 100% SUV style vehicles.

But many Buick dealerships, especially are also GMC dealerships. And GM tends to 'badge engineer' their products, using mechanicals from one model under badges and slightly different sheet metal across all their brands. So one could guess that the upcoming GMC SUVs and the upcoming Buick SUVs would likely be the same thing. The differential between the lines is that GMC also has trucks, which are profit centers, and have both commercial and consumer customer bases. So why would a dealer keep the Buick moniker?

 

[Ross 650]

Obama motors is getting smaller!!

 

[FrancSevin]

From what I understand, GM's plan was/is for them to have Chevrolet as the entry brand (Kia/Subaru), Cadillac as the premium brand (Genesis/Lexus/Audi/M-B) and Buick was to be the middle brand sitting in between (Hyundai/Toyota/VW/Honda). It was also supposed to go 100% electric. It was also supposed to go 100% SUV style vehicles.

But many Buick dealerships, especially are also GMC dealerships. And GM tends to 'badge engineer' their products, using mechanicals from one model under badges and slightly different sheet metal across all their brands. So one could guess that the upcoming GMC SUVs and the upcoming Buick SUVs would likely be the same thing. The differential between the lines is that GMC also has trucks, which are profit centers, and have both commercial and consumer customer bases. So why would a dealer keep the Buick moniker?

GM has always crossbred their products. My 56 Pontiac had the same roof line, the same front doors, the same windshield as their Chevy, Buick, Oldsmobile, and Cadillac. And yes, they did stagger the "value" of those virtually identical products to meet the competition's varied lines. IT's all been a part of "Marketing." I was always amazed that the buying public didn't see those similarities.

One could always option an Oldsmobile 98 to the level of a Cadilac and save small change. Back in the 50's, 60's, and 70's, product identity of the buyer was paramount. My dad was a "Pontiac man." I upgraded to Oldsmobile. My Godfather was a doctor, he always drove Caddy's.

Except for the shape of the taillights, swail of a fender, some chrome trimming, and the prestige of the badge, we all drove the same car.