Buick to require $300,000 minimum from dealerships hoping to sell EVs

Buick dealerships hoping to sell EVs will be required to make a $300,000 minimum investment.

The money will fund upgrades to the investing dealer’s training, maintenance operations and building, which will better facilitate EV sales once completed. While the final total depends on the location, it is not expected to go over $400,000.

The GM subsidiary’s new rules are the latest in a series of automaker efforts to prepare retailers for a full EV transition. It has become a point of contention between the two sides of the industry, as manufacturers hope to abandon gas-powered vehicles as soon as possible, while dealerships are worried the market is simply not there. While EV sales have outpaced expectations over the last year, it is still a small portion of the market, and returns on investments may take years to arrive.

However, the requirements are not without good reason. The Biden administration has made generous incentives available to automakers who produce EVs on American soil. While the market is still tiny, consumer interest in the technology is widespread, despite high prices and infrastructure limitations blocking buyers from making purchases. Although enthusiasm has cooled over 2022, auto executives have seen the writing on the wall. The issue is those car manufacturers have billions in investments to keep them afloat for years as EV sales catch up: dealerships have neither the money nor the time.

Unfortunately, Automakers have spent less time communicating the benefits of EV sales to retailers and more time issuing apparent threats. Similar to Ford’s plan, announced earlier this year, dealerships that fail to meet Buick’s investment requirements will lose their franchised status. Unlike its competitor, however, the automaker will attempt to buy dealership locations from owners who refuse to comply.

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