GM offers U.S. Buick dealer buyouts amid transition to EVs
Yahoo Finance Live examines General Motors offer to U.S. Buick dealer buyouts as the automotive industry continues to push towards EVs and charging infrastructure demands.
Video Transcript
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- My play is GM, General Motors offering buyouts to all US Buick dealers that don't want to make those investments in the brand's transition to exclusively all Electric Vehicles domestically by 2030, as they have planned. GM offered similar buyouts to Cadillac dealers in 2020, and about 17% of Cadillac's 880 dealers accepted that offer.
Buick's global VP Duncan Aldred told "The Wall Street Journal" not everyone necessarily wants to make that journey, depending on where they're located or the level of expenditure that the transition will demand. If they want to exit the Buick franchise, we will give them the monetary assistance to do so. But Buick has roughly 2,000 US dealerships, again, a major real estate play as well.
Shares of GM down 37% year to date, but largely unmoved by this news, down about a half a percent the day. But this could really impact the Buick brand moving forward, Rachelle.
RACHELLE AKUFFO: I mean, clearly, we're seeing GM really pushing with its EVs. Even we saw that in China. It's actually launching, with SAIC Motor, a new convertible out there, so really trying to also tap into the international market as really-- as well as making the most of the domestic market with some of these Buick drivers, so clearly expanding their footprint in the EV space, as well.
SEANA SMITH: Yeah, we talk about the EV space. My big question still remains-- it's been this case, now, for quite some time-- just the infrastructure. When are we going to have the infrastructure to support this huge push here to EV? Certainly a step in the right direction, a step that should be taken. But I also think there's a lot of questions just in terms of when we are going to see the number of charging stations that we need in order to fully adapt to EVs.
- And if I could add one note to your point, the power grid.
SEANA SMITH: Yeah.
- We're just finding out in California-- they're the first state to want to go all EV by 2035-- they don't have the power grid for the existing EVs.
SEANA SMITH: Yeah.
- It's a big question.
SEANA SMITH: Yeah. They were actually asking people not to charge their electric vehicles--
- That is correct.
SEANA SMITH: --because of the current situation--
RACHELLE AKUFFO: Exactly.
SEANA SMITH: --of their power grid, so lots of questions here as we make this transition in the automobile space. All right.
