Buick Says It Has Too Many Dealerships
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GM is making a pivot to all-electric powertrains, and the Buick brand is going along for the ride. However, the EV transition will likely include fewer Buick dealerships, as indicated by recent comments made by a GM executive.
Per Detroit Free Press, global vice president of Buick and GMC, Duncan Aldred, recent commented on Buick’s transition to all-electric vehicles, which will necessitate that Buick dealers buy in with EV-centric investments, including tooling, training, and charging stations. Of course, not all Buick dealers will want to make the EV transition, and as such, GM is offering an alternative buyout deal, and although Aldred said that there is no specific target with regard to U.S. Buick dealers, GM needs fewer Buick dealers in order to take the customer experience to a higher level.
“It’s not a case where, ‘Oh we have a master plan and this is what we want.’ We’ll manage what we get,” Aldred told Detroit Free Press. “But the reality is – Buick has 2,000 dealers. We do typically 200,000 sales a year. BMW has about 300,000 sales a year and they have about 200 to 300 dealers. Lexus, the same and Mercedes-Benz is the same.”
Aldred added that Buick has the lowest throughput in the automotive industry, or rather, the lowest number of sales as divided by the dealership count. As such, fewer dealerships could equate to higher sales counts and larger profits per dealer, which can then reinvest to improve customer experience and bring in new customers.
However, reducing the number of Buick dealers is far from a simple process. Aldred recently held a nationwide dealer meeting that included GM’s proposal to either make the EV transition, or opt for a buyout. Dealers will be given 30 days to decide whether or not they will take GM’s buyout offer, which is provided to each dealer individually along with a non-disclosure agreement to not discuss the offer value.
“It’s a pretty long process. This is a huge decision for dealers – if not commercially, emotionally,” Aldred said. “For a lot of dealers, it’s been a family business through generations. We’re very respectful and conscious of that.”
At present, there are only 18 standalone Buick dealerships in the U.S., while most dealers are paired with another GM brand. GM has already proposed alternative buyout plans for Cadillac dealers ranging between $300,000 and $700,000.
The first all-electric Buick model will arrive in 2024. Buick recently unveiled the all-electric Wildcat EV concept, as well as a new brand identity.
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GM has too many dealers in a number of markets and it really hurts them.
These buy outs are just one way to bring down the number of dealers.
Too many dealers in one market make all of them weak.
They have too few good vehicles is the bigger problem. Nothing they make currently brings people in to see them. Stale stale stale. Buick and GMC are in the same dealers and outside a few GMC’s (which are redundant themselves) there isn’t much exciting there.
I agree. They build three mediocre crossovers. While BMW, with whom Mr. Aldred made a comparison, has a complete line-up of premium vehicles for varying tastes and budgets. Yes, BMW can attract more customers – even with fewer stores, because they have a more complete line-up of products to offer. If I walk into a Buick/GMC storefront and don’t want a crossover, SUV, or pickup truck, I’m SOL. GM either needs to get their act together with Buick, or just get rid of the brand entirely. Much the same as Stellantis and the Chrysler brand.
Mr Mike and Red: Amen to that. I couldn’t agree more.
The Buick brand is critical in China due to its size and US sales are here to maintain the brand image. If China hadn’t picked up on it, Buick would be long gone.
It’s kind of like saying Rolls Royce and Bentley decided to give up on RHD cars, so British royalty is now seen in a BMW or Audi.
Buick is so overrated. We need Pontiac back. It’s was the 2008 recession that killed Pontiac in 2010. We could use Trans Ams and Bonnevilles. We could use the Pontiac Safari based on the Buick Regal Wagon.
Although we are flattered that you find our Dealership attractive enough to be used in your article, as New Englands top Buick Dealer we are NOT going to be giving up our Buick Franchise- we see a very bright future with Buick!
The Paul Masse Buick GMC Team
Hmm, tell us more about the models coming out? How many EVs are expected by 2025 and will they all look as sweet as that concept Wildcat?
You think the President of the Sales Dept. at a dealership is going to have that kind of information?
Wow, quick to jump on my back and ridicule. Lighten up.
GM does hold dealer meetings and provide a early glimpse at certain models along with other news about what’s coming. While I didn’t expect a response, always worth a try.
You’re absolutely right. The Dealers, especially the influential ones, know much more than they let on.
Thank you. Massey Buick has a terrific reputation. That has been a store to be proud of for many, many years.
Problem with Buick is there is nothing in their current product offering to attract customers to the dealership. All 3 vehicles are re-badged SUV’s many of which are below the Buick price point. I’ve owned a number of Buick’s but when my lease on my Envision was up I bought a Lincoln Corsair. Why because the new style Envision was no big improvement over the old style. To me Buick is in a race to extinction, can the current product offerings carry them until EV’s hit the streets? The only way EV’s save the brand is by radically new styling that attracts younger buyers. All the old timers (like me) who buy Buick are dying off and I seldom see anyone younger than 50 diving a Buick. GM axed Oldsmobile and Pontiac because of their re-badging philosophy and they are doing the same to Buick.
Is this “too many dealerships” issue really going to be a problem? Surely most of them will want to take that buyout.
I wonder when the results of that offer will be announced.
Doubtful that they would. Duncan AllDread, yes I know how I spelled it, couldn’t find his ass with both hands. Buick needs PRODUCT, Product, product. Not the crappy little collections of generic SUVs. Real product!
How is having fewer Buick dealers going to “take the customer experience to a higher level”? Closing stores, and making it harder for customers to find, buy or service their cars, is not how you improve a customer’s experience with a dealership, or a brand.
It seems to me that they tried this in 2008/2009, when they forced a lot of smaller Chevrolet dealers out of business, and all they ended up doing was lose market share.
Buick doesn’t need fewer dealerships, they need better products. I suspect that many Buick stores would be in big trouble, if they didn’t have GMC trucks and SUV’s to sell.
Reminds me of Bank of America in my heavily populated-and-growing area. Close branches, eliminate drive-throughs, and ‘strongly suggest’ people make appointments for banking services.
And then they advertise and brag about great service and the lofty ‘customer experience’ while you see lines out the door, clogged ATM lines, and typical 30-60 minute lobby waits if you have to do something specific inside.
Then the email surveys follow, where I happily express how awful things have become at my branch. But nothing really changes.
Change banks, simple
After reading the other comments above, I tend to agree fully. First, I don’t know how closing more stores brings a better experience. I think they are looking at that all wrong. The problem isn’t too many stores, it’s terrible sales people who are beaten down all day and never paid enough by the dealerships. It’s the lack of proper training. It’s the lack of customer care where everyone prefers to be on their phone instead of assisting possible customers.
Second, they just don’t have the product. Period. The this guy talks about BMW and MB, yet just look at the models they have. Just for the heck of it, I just went to the BMW site and counted: 18 models if you count the M series at one. They offer X1-X7. They offer SEDANS!! from the 2, 3, 4, 5, 7 and 8. Then they have the M series. Then they have the iX, i4 and i7.
Now compare that to Buick: 4 stinking SUV/CUV’s. That’s it. If GM wants to get serious and have Buick succeed, they must give them more product including several sedans and a coupe.
They mean only having Buick dealers willing to invest in top notch equipment and showrooms
At one time Buick really had it going for racing and high performance, that is until 1987. Buick dominated Nascar in the early 80’s with there Regal. Championship’s won by Bobby Allison’s #22 Miller Car and the #11 Mountain Dew Car owned by Junior Johnson-Driven by Darryl Waltrip. The 1986-1987 Grand Nationals are still popular to this day. Everyone nowadays wants to own a 87 GNX. Buick motors were very competitive in Drag Racing (Buddy Ingersoll) and Stock Class Grass Roots Racing. Buick Powered Engines at Indy were very competitive. The 1970 455 Stage 1’s are still in demand to this day. How did Buick fall so far from their Prime Performance Years of the 1960’s-1987? Who at GM put the death sentence to them? Why? Because at that time High Performance Buicks were kicking Corvettes and Cadillac’s azz’s is why. Its a wonder Buick has survived this long. Buick performance was axed simply because in 1987 the Regal Turbo 6 had more horsepower than the Corvette and was faster than the Corvette.
And you can’t have a car company pegged as an old persons car beating on the all mighty Corvette.
Buick high performance was eliminated, and Cadillac high performance was created later on, and the Corvette engineers no longer had to deal with Buick whipping on them in the quarter mile as was happening consistently in the 1987 racing season.
Buick should have had a share in the recent Blackwing CT4’s and CT5’s to wake up their sleepy, cobwebbed showrooms.
Well, that’s not really the case. In 1988 the rear wheel drive platform went away. The new FWD midsize platform replaced it. At that time engineering went to platforms instead of Divisions. Remember CPC and BOC? The Regal became more of a Corsica, But, Buick did kick major ass in the 80s. Remember the “We brake for Corvettes” bumper stickers? That started at the Buick garage at Milford and really pissed off the Chevy guys. All the NASCAR stuff back then sure was fun.
I know in the USA things are different than in Canada, however, I’ve been saying for years that it would be much simpler for buyers wanting to purchase GM vehicles in Canada if all their brands were available under one dealership instead of two!
Simplify the process…..
Get rid of Buick and GMC. It should have been done 15 years ago. Give Cadillac a luxury truck and Chevrolet can handle the rest.
Richard: Even though I appreciate Buick a lot, I’ve sold them for nearly 13 years, I’ve owned many and my family has owned many, I must agree with you. If GM wants Buick paired with GMC who is just trucks and SUV’s, then why keep Buick if they won’t offer cars? I’ve never been a fan of GMC and always found it totally redundant and Chevrolet could easily pick up those sales. So unless GM is going to infuse Buick with with a huge amount of products (including cars), then kill them off along with GMC and put those resources into Chevrolet and Cadillac.
Cadillac and Buick is what needs to go. Cadillac has an Escalade. That’s it. GMC Yukon Denali has this covered. Buick has nothing but 4 rebadged Chevrolets. Neither Cadillac or Buick are needed. Both are dead weight. Attempting to rebrand Cadillac and Buick as the EV go-to’s… good luck.
whypac: I will vehemently disagree with you on Cadillac. Ford now is just Ford and Lincoln. Toyota is the Toyota and Lexus. Nissan/Infiniti. Honda/Acura. I know there’s more, but why on earth would you suggest GMC being saved when EVERY SINGLE MODEL they sell is a complete rebadged Chevrolet?
Don’t get me wrong. I would hate to see Buick go, but if they aren’t going to give them products and sedans in the mix, then why keep them? GM needs at minimum Chevrolet and Cadillac.
Do they really need Cadillac though? I mean, look at the sales data.
Buicks are a status symbol in Asian countries, especially China. Since Envisions and Encores are built there, China and S. Korea they should be left there. It only dilutes the GM brand here and for customers like myself I don’t like the idea of them being built there. I was ecstatic when my 2022 refresh LTZ was built in Ft. Wayne. It would benefit GM greatly if they would build all GM products to be sold here be built here.
Buick is a status symbol. I can remember when Fidel Castro once said: When I can drive a Buick, I will know I have made it.
Buick is more of a reverse status symbol. This isn’t the 1960s.
“Fewer dealers could enhance the customer experience”. Huh?
The headline should have read, “fewer dealers could increase corporate profit”.
I doubt having to go further to find a dealer when you need one, especially for service, isn’t going to be the experience customers want.
I’m a buick century owner and I detest the ideas of getting rid of buick. Everybody makes suvs. They flood the market. Hardly anyone is making cars these days. I like cars get back to making luxury cars again with flash crome with sleek body styles. Don’t make all cRs look alike.. the diversity made the cars mDr in America great. Suggestion mKe a few 2 seater cars that are sporty and make buick like a cardiac or Lincoln but lots of fish. I have a silverDo also so I have the best of both worlds…I love. My buick more each time I drive it…to discontinue this wonderful car you have lost your mind. Not everyone will be able to buy a electric car like retirees ot people on soil security. I DONT WANT ONE….I feel the government is pushing electric down our throats.
SAVE THE BUICK BRING BACK A SMALLER VERSION OFWILDCATS REGALS WITH BETTER DETAILING AND CHROME. KEEP THE CENTURY AND DRESS IT UP. STOP FOLLOWING OTHER DESIGNS. IF I WANTED A CSR THAY LOOKED LIKE A FORD I WOULD BUY A FORD. ELECTRIC CARS STnd a lot to be desired.
Old man yells at … Buick
How can fewer dealers enhance the customer experience??? That sounds like greedy dealer propaganda to me!
If they reduce multiple dealerships in metropolitan areas that may be good. My concern is that many dealerships in smaller towns will end up gone. I already have to drive 35 miles to a dealership, if it goes then I think the next closest dealer would be just over 100 miles. Might not be a problem to buy the vehicle but it is totally impractical for service.
We lost our local Chevrolet and Buick dealer several years ago just because GM wanted them to make half a million dollars of changes just to get a certain appearance. Dealership looked fine and it really made it more inconvenient for the consumer. Sometimes I feel they are more concerned about appearance than with customer service.
Buick is a Chinese company. Switch to EV’s and it’s death to America(Buick).
Perhaps G.M. means they have too many Buick dealers that aren’t buying into the ev hoax…
I’m hoping that the Wildcat is the first EV released by Buick, something exciting and new as opposed to another Crossover in a similar vein as the Lyriq or Blazer. I always wanted a Regal GS growing up and this would be the sedan to bring me to Buick.
It’s a great looking vehicle but not a serious consideration as an EV.
I have 5 Chevy dealers within 50 miles of me in Albany N.Y. area and it still takes 2-3 weeks to get an appointment, oil change etc. so I don’t know about this number thing when it comes to dealerships