General Motors Denies Buyouts to GMC Dealers Unwilling to sell Hummer EVs | Financial Buzz

General Motors Denies Buyouts to GMC Dealers Unwilling to sell Hummer EVs

General Motors (NYSE: GM) announced it does not plan to present buyouts to GMC dealers, as it has to other franchises for its Cadillac brand.

 

Vice president of GMC marketing, Duncan Aldred, revealed that the brand is utilizing a “very different strategy” for EVs in comparison to Cadillac. Approximately half of GMC’s 1,695 dealers have conceded to invest and sell electric vehicles, to start next fall with the GMC Hummer EV pickup.

“We will not be going down a similar strategy as Cadillac,” Aldred said Tuesday during a virtual media event. “What the position is with Hummer EV is that it’s a participation agreement for dealers. It is optional for each and every dealer.”

The hummer is the company’s first all-electric-vehicle and is set to introduce GM’s next-generation Ultium battery. The electric pickup has already sold out despite its hefty USD100,000 price yag. According to Aldred, the automaker is set to begin winter testing of the vehicle. 

Aldred chose not share how many of the EVs had been ordered, but revealed “It is a highly sought-after vehicle. The customers want the vehicle just as soon as possible. Of the people who reserved another Hummer EV vehicle, about half of them said if a first edition becomes available, we’d like that vehicle.”

GMC anticipates more dealers will want to sell EVs as they receive further details on it, according to Aldred. He also mentioned that the cost for dealers to sell the Hummer EV fluctuates based on locations.

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