General Motors will go through quite the transformation over the next 10 years. The brand has an onslaught of EVs inbound, with the GMC Hummer EV serving as a flagship and Cadillac positioned to become EV only by 2025, although it’s unclear what this actually means. Still, this radical shift is too scary for some Cadillac dealers, and 17 percent of dealerships (or one in six) are opting for a corporate buyout to close down rather than investing $200,000 in EV infrastructure.
These buyouts range from $300,000 to $1,000,000, and one may think GMC dealers will be given the same treatment. Not the case, according to Automotive News.
Instead, dealers simply have to choose if they will make the necessary investments to sell the GMC Hummer EV. Previous reports suggest only about half of GMC dealers are agreeing to the Hummer EV sales conditions, likely down to the expense. Furthermore, the niche flagship status of the GMC Hummer EV hardly makes it a volume seller, and there simply won’t be a market for it at some GMC dealerships to justify the costs needed to sell it.
GMC is commonly sold with Buick too, and neither brand has the short-term EV ambitions of Cadillac. Without many known electric vehicles coming relative to the rest of the lineup, the costs to invest in their infrastructure is too great, especially when EVs will not bring as much money into the dealership as internal combustion engined vehicles like the new 2021 GMC Yukon SUV or Sierra 1500 pickup truck.
That’s because car dealers actually make more money in the service and parts department than new vehicle sales, and EVs require significantly less maintenance than their gas or diesel powered counterpart. Once a dealer sells a GMC Hummer EV, the only things they will probably need to come in for are tires and brakes every once in a while.
Still, with EVs seemingly positioned as the way forward for most automakers, the dealers will need to make the necessary investments one day. We know an electric Chevrolet Silverado (or something like it) is coming, so it’s not out of the question to expect an electric GMC Sierra counterpart in due course. Buick, who sells vehicles more oriented towards comfort than anything else, seems like a great candidate for GM’s Ultium EVs, too. Once GM’s full EV rollout is in swing, dealerships probably won’t be given an option to sell EVs, it will just be what they sell. And with more models available, it will make more sense for them to do so. But until then, it’s no surprise not all GMC and Cadillac dealers are on board.