DETROIT, MI — General Motors says it has reduced the size of the company’s Buick dealership network roughly in half in the U.S.
The plan to cut dealerships was a voluntary buyout program, according to the company. The voluntary buyout program with Buick’s roughly 2,000 U.S. franchise dealers started last year, as the brand began investments in its transition to exclusively offering all-electric vehicles domestically by 2030.
The 1,000-store reduction is expected to increase the number of sales per location and drive profits at the remaining dealers in the U.S. The buyouts also allowed dealers who didn’t want to invest in electric vehicles to bail on the business. Those investments totaled nearly a half million dollars.
Buick doesn’t even currently offer an EV in the U.S. The brand’s lineup consists of only four gas-powered crossovers and SUVs.
Dealers were told the needed to invest in training, tools, and special equipment for the EV transition. Many balked at the directive, according to sources familiar with the recent developments.
