For EVs, Buick dealers face $300,000 investment | Automotive News

2022-12-23 20:43:02 By : Mr. Tong Stephen

Buick will use the Electra name for its EV lineup along with an alphanumeric code to distinguish the models.

Buick dealers who choose to stay with the brand will need to invest at least $300,000 to $400,000, on average, to sell its future electric vehicles, the brand said this week. New Energy Vehicle Professional Training Room

The minimum investment required of dealerships for tooling, training and other EV equipment is an estimated average and will vary based on the individual store, Buick spokesman Sean Poppitt said in a statement to Automotive News.

Buick plans to shift to an all-EV lineup by 2030 and has said it does not plan to introduce any new gasoline-powered vehicles after 2024. The brand will use the Electra name for its EV lineup along with an alphanumeric code to distinguish the models. Buick has offered to buy out any U.S. dealers who don't want to make the required investments to prepare to sell EVs.

The brand declined to share the number of dealerships that have elected to take the buyout offer to date. Poppitt said in the statement that "any dealer who wants to discuss this program is strongly encouraged to contact the Buick team."

Buick had 1,963 U.S. dealerships at the start of this year, according to Automotive News' Dealer Census.

"We see Buick's dealer network as a business advantage, and they will remain a critical part of the retail and relationship chain with customers," Poppitt said in the statement.

"However, Buick — with the support of its National Dealer Council — will allow those dealers who do not share Buick's all-electric vision to exit now on an elective basis before investment in essential training, tools, and special equipment is required," he added. "The minimum investment to become an EV-ready Buick dealer will vary by dealer but is estimated to be $300-400K, on average. Acceptance of an offer is voluntary, but all Buick dealers who remain must be adequately prepared to sell and service Buick EVs."

Buick's dealer buyout offer followed a similar offer from Cadillac, which also plans to be all-electric by 2030. About a third of Cadillac's nearly 900 U.S. dealerships elected to take a buyout, with offers generally from $300,000 to $500,000. Cadillac dealerships will be required to invest, on average, $200,000 to prepare to sell and service EVs.

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