General Motors is making a major move towards the all-electric vehicle segment, announcing plans to launch 30 new EV models by 2025, two-thirds of which will be sold in the U.S. Naturally, a pivot like that comes with huge changes all the way down the line, including for dealers, which must now prepare for the new EV onslaught with charging stations, employee training, and new tooling. And although some GMC dealers are uninterested in selling EVs, General Motors will decline to offer those dealers any kind of buyout offer.
That’s the latest from Automotive News, citing statements made by the vice president of global Buick and GMC, Duncan Aldred.
“We will not be going down a similar strategy as Cadillac,” Aldred said, referencing buyout offers the luxury brand made to members of its dealer network last month.
As GM Authority covered previously, Cadillac notified its U.S. dealers that a $200,000 investment was required to prep for the arrival of the forthcoming Cadillac EV models, including the Cadillac Lyriq crossover. Alternatively, the Cadillac dealers were also offered a buyout ranging between $300,000 and $1 million to exit the brand entirely.
According to recent reports, roughly 150 of those U.S.-based Cadillac dealers, or 17 percent, elected for the buyout.
Now, it’s looking like GMC dealers will have no such option. Per the recent Automotive News report, roughly half of GMC dealers have elected to upgrade to sell the forthcoming 2022 GMC Hummer EV pickup. Dealers who elect to sell the new Hummer EV must also sign an optional participation agreement. What’s more, GMC will allocate Hummer inventory based on customer orders for the next two years, while also encouraging standardized pricing.
General Motors unveiled the all-new 2022 GMC Hummer EV pickup in an online debut back in October, pulling the sheets on a full-size, battery-powered off-roader capable of accelerating to 60 mph in just three seconds. GMC also has plans for a new Hummer EV SUV model, as previewed during the recent Barclays 2020 Global Automotive Conference in November.
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Comments
Unlike the Cadillac Lyric, this Hummer EV appears to have gotten a lot more favorable responses so far, most dealerships, not all of course, probably wouldn’t mind having a couple of these Hummers on their lots, the Pre-Orders on this Truck have them already Sold Out, I suspect however once the economy starts to tighten back up sometime between 2021 and 2022, this hopefully won’t be much of a big issue anymore and Dealerships will be able to sell with confidence but at 112k a Pop, those Dealerships certainly won’t need an Inventory Overflow sitting on their Parking Lots either.
In the last quarter, GM sold only 26 EVs, which included one Hummer EV. GMC dealerships are already complaining there is virtually no demand for the Hummer EV. Some may demand a buyout.
“GM sold 26 EVs last quarter. There is room for improvement” – Elon Musk (January 2022)
The truth is the GMC dealers are near a good number now. Not too many like Cadillac and Chevy.
Also GMC will still offer mostly ICE vehicles for the foreseeable future.
Will those dealers who choose not to upgrade have an opportunity to make an investment in the future to sell EVs? Just about all GMC dealers share a store with Buick and eventually they will have EV models as well so is the investment for Buick separate from GMC?
GM sold only one EV Hummer last quarter. They have gotten off to a poor start.
“With the Hummer EV we are sitting on one of the biggest bombs ever.” – Unidentified GMC dealer
People don’t remember GM sold only 2000 Cadillac ELRs in its last year. No wonder 150 Cadillac dealers took the buyout.
GM’s rapidly dropping stock prices shows investors are finally skeptical of GM’s electric push. This is going to be bad.