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GM ready to buy US Buick dealers

General Motors will offer buybacks to Buick dealers in the US who don’t want the investment involved in the brand’s all-electric transition, the Buick head said in an interview with The Wall Street Journal Friday publication.

All about 2,000 Buick dealers will have the opportunity to buy back, Duncan Aldred, Buick global boss, said in the interview. That means giving up the franchise and not selling Buicks anymore, but most dealers also sell other GM brands, Magazine note, adding that Aldred was scheduled to outline the plan at a virtual dealer meeting on Friday.

Buick Wildcat EV concept car

Buick Wildcat EV concept car

“Not everyone will necessarily want to make that journey, depending on their location or the amount of spending that the transition will entail,” Aldred said in the interview. “So if they want to get out of the Buick franchise, then we’ll give them monetary support to do so.”

Aldred did not say how many dealers Buick expects to buy back. A similar program for Cadillac started in 2020 and completed last year has reduced the luxury brand’s dealer network. about a third, for about 560 dealers. GM says the average purchase is around $200,000 but fluctuates in seven figures.

Buick Wildcat EV concept car

Buick Wildcat EV concept car

GM said many of its acquisitions were made by Cadillac dealers in rural areas, where electric vehicle sales are expected to remain low. The move to full EV sales also requires dealers to invest in charging hardware and train more employees, while limiting potential revenue from routine maintenance, which electric vehicles require less than internal combustion vehicles.

Both Buick and Cadillac plan to sell only electric vehicles by 2030. Buick is not currently selling any EVs in the US, but will release one. First EV in the US market in 2024. All upcoming Buick EVs will use the Electra name plus alphanumeric suffixes to indicate body size and style, and will share Ultium battery pack and motor with electric vehicles from other GM brands.

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