General Motors is looking to be more involved in the buying process for its new GMC Hummer EV pickup truck and SUV models, encouraging no haggle pricing and limiting the amount of inventory dealerships have access to.
Automotive News recently obtained a copy of the “electric models participation agreement” that GMC is making dealerships sign in order to be entitled to sell the GMC Hummer EV and its other future Ultium-based battery-electric models. Under this agreement, GMC customers must place a reservation for the Hummer EV online and dealers will only receive inventory based on those customer reservations, rather than bulk inventory.
GMC is also encouraging no-haggle pricing for the Hummer EV. While set prices are not part of the participation agreement, it does indicate that customers agree to the suggested retail price when ordering online and can then negotiate the final price with the dealership afterward. The base price for the 2022 GMC Hummer EV Final Edition that will enter production next year is $112,995.
A GMC spokesperson told AN the company is still ironing out the kinks with regard to the unilateral pricing model, so the strategy may still be subject to change.
“We’re still working through the details,” GMC spokeswoman Michelle Malcho told the publication. “We have no comment at this time.”
GMC boss Duncan Aldred said the goal with the set pricing structure is to discourage dealers from price-gouging customers for the Hummer EV, which is expected to be in high demand, and remove some of the confusion from the vehicle process.
“There will be no incentives. There will be no trickery,” Aldred said in October, as quoted by AN. “We are trying to construct a dealer margin in such a fashion that it really is a no-haggle price.”
Additionally, the agreement reserves GMC’s right to limit a dealership’s communication with Hummer EV customers and mandates they must communicate with them manually and not through automated messaging, e-mail or voicemail.
Some dealers aren’t happy with this new model – especially after GM asked them to invest $200,000 or more in facility upgrades to sell and service advanced EVs like the GMC Hummer EV. GM makes no guarantee that dealerships who agree to make these required investments will receive Hummer EV allocation early on
GM, for its part, hopes that strong profit margins and demand for vehicles like the GMC Hummer EV will keep dealers happy as it shifts to this new sales method for EVs. It also hopes that by taking some of the “waste” of the vehicle buying process, it can improve the experience for customers, as well.