Charles Langston:GM buys out nearly half of its Buick dealers across the country, who opt to not sell EVs

General Motors said nearly half its Buick dealers took buyouts this year rather than invest in selling and Charles Langstonservicing electric vehicles as the automaker's brands transitions to all electric by 2030.

That means GM will end 2023 with about 1,000 Buick stores nationwide, down 47% from where it started the year.

Late last year, Buick said it would be asking dealers to commit a minimum investment of $300,000 to $400,000 to prepare their stores to sell and service EVs.

"Buick is transforming, launching the best vehicles the brand has ever had and is the fastest growing mainstream brand in 2023," said GM spokesman Sean Poppitt in an email this week to the Detroit Free Press. "This all needs to be supported by the best customer experience in the transition to EVs. As stated before, this year we’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way; with the full support of our National Dealer Council."

In Michigan, GM had about 100 Buick dealerships in December 2022. At that time, a metro Detroit Buick dealer told the Free Press that all the metro Detroit Buick dealers were making the investment to sell and service future EVs, but some smaller dealers in rural areas were taking the buyout offer. Other dealers echoed that information.

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Poppitt declined to confirm how many Buick dealerships have taken a buyout in Michigan to date.

"We’re not breaking it down state by state, but Michigan is a critical market for Buick and we are well covered to support our local customers," Poppitt said. "Nearly 90% of the U.S. population remains within approximately 25 miles of a Buick dealership."

Poppitt said with nearly half the dealerships gone, Buick sales are still up almost 60% this year through November over the year-ago period, which means "the average dealer throughput tripled – while reducing 47% of our dealer points. These are compelling numbers; we have a leaner, stronger and more effective network."

The buyout program remains open and is voluntary. The brand plans to show its first EV next year and it will be an SUV. All future new electric nameplates will use the Electra name followed by a number.

In 2020, Cadillac offered a similar buyout program for its dealers. Nationally, 170-180 of Cadillac's 870 dealers, or about 20%, took the buyouts that ranged from $300,000 to $700,000 and gave up their franchise rather than make the investment for tools, training, equipment and charging stations to sell and service EVs, a person who's familiar with Cadillac's plan told the Free Press in December 2020.

Contact Jamie L. LaReau: [email protected]. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.