Over the last few weeks, we've provided information about Cadillac's plan to compensate dealerships that are unwilling or unable to support the upcoming EV push. Essentially, Cadillac dealers must either invest some $200,000 if they plan to sell upcoming electric vehicles, or opt to take a buyout offer from General Motors. To date, 150 Cadillac dealers (about 17 percent) have chosen the buyout.
Of course, the question now is whether or not GM's other brands plan to follow suit. While we haven't heard details from all brands, we've learned the GMC has no plan to extend a buyout to dealerships that don't want to sell the Hummer EV, which is an off-road-ready all-electric pickup truck. Vice president of global Buick and GMC shared:
"We will not be going down a similar strategy as Cadillac."
Cadillac plans to have a fully electric lineup within the decade. The brand's plans are moving much faster than GMC's, so decisions need to be made accordingly. Automotive News reports that Cadillac dealers choosing to opt out have accepted buyout offers ranging from $300,000 to $500,000. If you subtract the $200,000 investment these dealers would have had to make if they didn't accept the buyout, they've now saved $500,000 to $700,000 each.
Nearly half of GMC's dealers have already committed to selling the 2022 Hummer EV. This also means they've committed to spending money upgrading their dealerships to sell and service electric cars. The dealers were required to sign an optional participation agreement, which states that GMC has the right to limit dealers' interactions with Hummer EV buyers. While GMC also has plans to launch the Hummer EV in an SUV configuration, it doesn't plan to electrify its entire lineup in the near future.
Currently, the Hummer EV is sold out. More specifically, reservations for the First Edition model were completely filled within 10 minutes of the electric truck's unveiling. GMC says the First Edition Hummer EV will launch in the fall of 2021, with other versions launching as a slow rollout each year thereafter. See our list of all of the upcoming electric trucks.
GMC says that during at least the first two years, it will allocate Hummer EV inventory based on customer orders. It also says it will work to push standardized pricing across dealerships.