Some Car Dealers May Disappear as New Electric Vehicles Head to the Market
Electric vehicles bring something new and different to the automotive world, and not all car dealers want to make the change to EVs. Unfortunately, the locations that choose not to transition to electricity might be left out in the cold. Buick is offering a buyout of dealerships that don’t want to switch to EVs, but will other dealers do the same?
The future of Buick car dealers is electric vehicles or nothing
Many luxury brands have announced a movement away from gas-powered cars and toward electric vehicles. Buick doesn’t exactly fit into the luxury car market, but this premium brand is making the same moves. Car and Driver informs us that Buick is moving in two distinct directions: electric and SUVs. Everything this brand offers after 2030 will be both electric and an SUV, which could challenge some dealers.
What’s required for a dealership to sell electric vehicles?
Car dealers face several expenses to ensure electric vehicles can be sold at their locations. They must install EV chargers, train their service team, and educate the sales staff. These new cars aren’t like any others they’ve sold before, and some dealers aren’t ready to make such a commitment.
How will GM handle Buick dealers that don’t wish to sell EVs?
Buick dealers that choose not to sell electric vehicles will receive a buyout from GM. Currently, there are nearly 2000 locations across the United States where Buick vehicles are sold. Only a handful of these are stand-alone Buick locations; most also sell GMC products. This could be good news for dealers that don’t want to sell electric vehicles because they can still sell GMC products, at least until GMC transitions to EVs.
What year will there only be electric cars?
Many automakers plan to continually increase the number of electric cars sold to reach 100% EVs eventually. Some have quoted 2030 as their target year, while others look to 2035 as a possibility. Not all automakers have made this commitment, which leaves us without a solid answer to this question.
California and other states have taken the deadlines out of the automakers’ hands and implemented timelines. Currently, the California Air Resource Board (CARB) has a plan in place to increase EV sales to 100% in the state by 2035.
Will other car brands buy out dealers that don’t want to sell electric vehicles?
Most likely, some automakers will also offer buyout programs for car dealers that don’t wish to spend the money to transition to EV sales. Unfortunately, not all automakers have four or more brands under their purview, like GM. This could mean some dealers are left with the choice to either sell electric vehicles or shut their doors for good.
Next, learn how much it costs to set up a home EV charging station, or watch this electric vehicle video below: