With Buick due to reintroduce the Electra name as it moves to an all-electric line-up by 2030, the brand will make an offer to buy out any of its U.S. dealers that do not wish to make the necessary infrastructure investments needed to make the switch.
The story was first reported by The Wall Street Journal, citing an interview with Global Vice President of Buick Duncan Aldred.
If any of Buick’s 1,963 franchised dealers take the offer, they give up the right to sell Buicks. Given that only 13 Buick stores are standalone entities, most dealers would still sell other General Motors brands. Aldred was scheduled to describe the buyout strategy during a Friday virtual dealer meeting.
If Buick dealers don’t take the buyout, they are required to carry out store upgrades, including charging stations, which would require a significant outlay, with published reports citing costs in the $200,000-$300,000 range. There will also be changes to the brand’s business model.
“Not everyone necessarily wants to make that journey, depending on where they’re located or the level of expenditure that the transition will demand,” Aldred told The Wall Street Journal. “So if they want to exit the Buick franchise, then we will give them monetary assistance to do so.”
It’s not known how many Buick dealers will opt for the voluntary program. Several hundred of GM’s Cadillac dealers were phased out as a result of a similar buyout completed last year, reducing Cadillac’s U.S. dealer network by roughly one-third, with offers that ranged from $300,000 to $500,000.
According to Automotive News, the plan was first presented to Buick’s National Dealer Council a couple weeks ago, and support for the plan was unanimous.
Given that Buick sold 48,075 vehicles in the first six months of 2022, down from 111,711 during the same period in 2021, it’s clear that some dealers will go for the cash. Buick’s 2022 volume averages out to a little more than two cars per month. In China, Buick sold 128,300 units in the second quarter of 2022.
What’s in a name?
The automaker could also add the Buick Velite nameplate to its roster of models as it revises its American line-up. GM submitted a U.S. trademark for the Velite name in January. Importing the Velite from China wouldn’t be unheard of, as the current Buick Envision crossover is built there by GM’s joint-venture with SAIC. In fact, the carmaker already offers the electrified Velite 5 plug-in hybrid sedan, the Velite 6 plug-in and EV crossover, and the Velite 7 EV crossover in what is currently the largest market for electrified vehicles in the world. Importing electric Buicks from China wouldn’t take a huge amount of courage.
Buick’s EV models will carry the Electra name when they arrive in 2024, and sport a redesigned Buick logo, its first revision since 1990. In February, Buick released a teaser image shows a small detail of a lighting assembly for what is all but certain to be an all-electric crossover, taking its inspiration from the lighting of a 1963 Buick Riviera.
The newly revised named will be joined by a new global brand design language previewed in the Buick Wildcat EV concept. It is not slated to go into production as an Electra model as it wasn’t designed around GM’s Ultium EV platform.
“Our forthcoming products will adopt a new design language that emphasizes a sleek, dynamic and forward-looking appearance,” said Sharon Gauci, executive director, Global Buick and GMC Design. “Our exteriors will incorporate fluid movements that contrast with tension to convey motion. Interiors will balance modern design, new technologies and attention to detail to evoke warmth and a rich sensory experience.”
The Wildcat name was first used on a 1953 Buick show car, while Electra replaced the Roadmaster as Buick’s flagship sedan in 1959.
I think a lot of dealers will take the buyout. If the brand is offering $300-500K when you only sell 2 cars a month, that is many years worth of profit, plus you could use that money to bring in another brand that might actually have products people want.
Grandparents used to always drive Electra 225s. Gorgeous car. Totally silent on the road. Cad were too presumptive. They did not need to flaunt their wealth.