Staff Reports
Recently, news has come to light that hundreds of Buick and Cadillac car dealers across the nation are choosing to cut ties with these iconic car brands rather than sell electric cars. It’s a decision that is causing shockwaves but is not all that surprising considering the current political climate.
Hundreds of Dealerships Accepted Voluntary Buyout Rather Than Bow Down to Woke Policy Changes via @WestJournalism https://t.co/rHE0kpgell MORE TAX $$$ Wasted!!
— Kim Guerino (@GuerinoKim) December 22, 2023
With Joe Biden and his administration pushing electric vehicles on a public that just isn’t interested, it’s no wonder dealerships are waving the white flag. General Motors has mandated that all dealerships must go all-electric in the coming years, and many are choosing to opt out rather than comply with this mandate.
The numbers are staggering. About 47 percent of Buick dealers and roughly a third of Cadillac sellers have taken the manufacturer buyouts. This has led to almost half of America’s Buick dealerships and about a third of Cadillac dealerships shutting their doors.
But these doors aren’t necessarily closing for good. These dealerships have the option to continue selling other popular GM brands such as Chevrolet and GMC. It seems like a sensible move for them to focus on selling cars that actually have a market, rather than being forced to peddle electric vehicles that customers aren’t clamoring for.
The cost of compliance with GM’s all-electric mandate is steep. Dealerships are required to invest $300,000 or more to reconfigure their business to accommodate electric vehicles. If they choose not to make this investment, they are forced to give up their Buick franchise. It’s clear that the financial burden of transitioning to electric vehicles is simply too much for many dealerships to bear.
The big question is, do you agree with the decision of these dealers to sell their stores? It’s a decision that has no doubt caused a lot of internal conflict for these entrepreneurs. It’s a tough spot to be in, especially when the government is pushing for a nationwide shift to electric vehicles. But the market demand just isn’t there.
What makes this even more interesting is that as car manufacturers continue to push for electric vehicles, car dealers are seeing a decrease in demand for them. There’s a huge disconnect between the manufacturers and the people who actually have to sell those vehicles. While automakers may view electric cars as the “future,” the reality on the ground is quite different.
The people tasked with selling these cars are far less sure that Americans want electric vehicles. EV sales are already taking a nosedive, and car dealers are struggling to move these vehicles off their lots. This has led to a coalition of nearly 4,000 car dealers sending a letter to car makers warning that EV mandates are “unrealistic.”
It’s clear that the push for electric vehicles is facing resistance from the very people who are on the front lines of selling these cars. It’s a case of the market dictating what customers want, rather than government mandates or corporate initiatives.
With the cost of transitioning to electric vehicles, the lack of market demand, and the struggle to sell EVs, it’s no wonder that dealerships are choosing to opt out. The financial burden and business risk associated with selling electric cars just doesn’t make sense for many of these dealers.
