General Motors Company (GM) Proposes to Acquire Buick Dealers that Oppose EVs

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General Motors Company (NYSE:GM) declared on Friday that the firm is proposing to acquire U.S. Buick dealers that don’t want to make investments in the brand’s transition to entirely offer all-electric vehicles domestically by 2030. The takeover proposals are GM’s most recent attempts to speed up the company’s plans for electric vehicles and overhaul its sales network.

On Friday, GM will make the buyout ideas to Buick dealers as part of its most recent efforts to accelerate the company’s plans for electric vehicles and alter its sales network. The company’s worldwide chief, every one of Buick’s nearly 2,000 U.S. franchise dealers will have the option to accept a buyout, according to Duncan Aldred.

He added that not everyone necessarily needs to make that journey, depending on where they’re located or the level of expenditure that the transition will demand. They will therefore provide them with financial aid if they decide to leave the Buick franchise.

Michelle Malcho, a company spokesman, confirmed the buyout intentions to CNBC on Friday but did not disclose the cost or the anticipated number of dealers who would accept the offer. Many Buick dealers also sell GMC vehicles or vehicles from one of GM’s other American brands. The company offered Cadillac dealers equivalent buyouts in 2020. In contrast to thinking they would have to spend at least $200,000 updating their electric vehicle showrooms, just 150, or 17%, of the 880 retailers accepted the offer.

As per a person familiar with the arrangements, buyout proposals for Cadillac dealers ranged from around $300,000 to over $1 million. Malcho persistently refused to specify how much would be paid to Buick dealers.

Buick’s EV aspirations are part of a bigger $30 billion commitment by GM towards electric vehicles by 2025. The automaker anticipates that this investment will result in the production of around 30 new EVs globally.

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