© Reuters. Chevy Will Not Follow Cadillac and Buick in Offering Franchise Buyouts
By Michael Elkins
In a report by The Verge, Chevrolet’s global vice president, Scott Bell told the news site that his brand would not follow its sister brands, Cadillac and Buick, in offering buyouts to dealers who do not wish to make the investments to upgrade their facilities for electric vehicles. An investment that could carry a price tag of up to $300,000.
Last week, global Buick chief Duncan Aldred said any of the 2,000 of the brand’s franchise dealers in the U.S., who don’t want to make the necessary investments to upgrade to electric vehicles, will be given the opportunity to take a buyout. A buyout would mean the dealer will no longer be affiliated with the Buick brand and can no longer sell Buick vehicles.
Aldred declined to say how many dealers he expects to accept the buyout offer. However, General Motors’ (NYSE:) Cadillac brand offered a similar buyout in 2020. By the time the process was completed last year, it trimmed the luxury brand’s U.S. dealer network by roughly one-third.
It appears dealers that do elect to take buyouts from Cadillac and Buick may end up exclusively selling Chevy vehicles.
According to Bell, Cadillac and Buick’s loss is Chevy’s gain.
“The minute they pull back and say, ‘You know what, I’m not ready to go all in for those brands,’ they’re now 100 percent a Chevy dealer, which is a good thing for Chevrolet,” Bell said at a pop-up event in Manhattan celebrating the unveiling of the 2024 Chevy Equinox EV.
Shares of GM are up 1.85% in mid-day trading.
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