GM: Almost half of Buick dealerships across US opting out of EV
FOX 2 (WJBK) - General Motors announced that almost half its Buick dealerships are grabbing buyouts in 2023 instead of deciding to put their money into selling and maintaining electric vehicles.
"It’s evidence of the shifting patterns and presumptions on the part of manufacturers about the demand," said K. Venkatesh Prasad, the Center for Automotive Research's chief innovation officer.
The buyouts are another sign that the Big Three companies are adjusting aspects of their historic EV transition.
"With any new product you go through this first wave of people who have disposable income – might have a three car garage, can happily plug their cars in the garage and charge at home, or go to a workplace and can charge," Prasad said. "But with people now increasingly working from home, we’re going to multiple places. As part of their livelihood, they need to be able to charge, and not everyone has access to that third spot in the garage."
However, "the growth in the sales of EVs continue," Prasad added.
According to GM, Buick is in the middle of a transformation but was still the fastest growing main brand it had this year.
GM wanted Buick dealers to invest nearly half a million into their stores to facilitate the sale and maintenance of electric vehicles (EVs). However, numerous dealers decided to withdraw after assessing the numbers.
Yet Prasad said that does not mean the technology isn’t there overall.
"One can imagine a very steep curve that was envisioned and now perhaps it’s going to be a little less steep," he said. "But that transition is happening, and so what you’re seeing is that… if demand slows down, then you have to quickly make changes."
In the meantime, auto experts are also responding to GM's Tuesday fire at the Factory Zero EV Plant in Detroit. The 3-alarm fire involved materials used in the production of batteries.
"Every single time anything like this happens, it’s a learning opportunity. It’s a concern, and it’s certainly a big concern on the spot –in the field, in the moment– and then it’s a learning opportunity for everyone."
Dozens of fire trucks called to GM Factory Zero in Detroit
Numerous Detroit Fire trucks are outside the plant, located at 2500 E. Grand Blvd just before 5 p.m.
GM said the fire was caused by a forklift that poked a hole in a container that held battery materials. No injuries were reported.
Cadillac offered its dealerships a similar buyout in 2020.