General Motors reportedly does not plan to offer buyouts to GMC dealers like it has for franchise owners of its Cadillac brand who don’t want to invest in outlets to sell all electric vehicles.
According to CNBC, Duncan Aldred, vice president of GMC, said the brand was executing a “very different strategy” regarding EVs than Cadillac. About half of GMC’s 1,695 dealers have agreed to invest in and sell electric vehicles, beginning next autumn with the brand’s Hummer EV pickup.
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“We will not be going down a similar strategy as Cadillac,” Aldred said. “What the position is with Hummer EV is that it’s a participation agreement for dealers. It is optional for each and every dealer.”
The Hummer is GMC’s first all electric vehicle and also is the debut vehicle for GM’s next-generation Ultium batteries and architecture. Three additional EVs, including an SUV version of the Hummer and another pickup, are expected for GMC under a previously announced plan by GM to spend $27bn on EVs and autonomous vehicles to the end of 2025, the report noted.
GMC expects additional dealers could agree to sell EVs as more information about the vehicles becomes available, Aldred said, according to CNBC. The expense for dealers to sell the Hummer EV varies based on outlet, according to Aldred.
Phil Brook, GMC vice president of marketing, said GMC was asking dealers to invest “for the basics” including training and charging infrastructure.
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By GlobalDataAldred said GMC expects expenses for “the vast majority of dealers” to be “a lot less than the top stop number that’s been reported.” For Cadillac, it was at least US$200,000 to upgrade dealerships and offer required training, CNBC said, citing Automotive News.
About 150 Cadillac dealers accepted buyouts as the Detroit automaker pivots the luxury brand to lead its all electric vehicle efforts, a “person familiar with the details” confirmed to CNBC.
