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GM recently announced that it is buying out any US Buick dealers that do not want to sell electric vehicles. The news has been greeted with excitement from EV enthusiasts. The announcement is one of a number of major investments by General Motors in electric vehicles.
Cadillac dealers aren’t the only ones facing this dilemma. The General Motors division is planning to buy out any dealership that doesn’t want to sell electric vehicles by 2020. The company has given similar buyouts to Buick dealerships. This move will help avoid $300,000 in modernization costs. It will allow dealers to keep their existing inventory and access to used vehicle auctions.
As a part of its new strategy, GM is also looking to expand its EV market share in the US. It has pledged to release 30 all-electric vehicles by 2025. In September, the company’s electric Cadillac Lyriq sold out in 10 minutes, and the CEO said that GM could catch up to Tesla in EV sales by 2025.
GM is accelerating plans to convert all Buick dealerships to electric cars, and a new buyout offer is set to make this transition easier. The move is expected to result in significant investments in charging stations, store upgrades, and new business practices for Buick dealers. The move is a continuation of GM’s plan to convert several hundred Cadillac franchise dealerships in the U.S. to all-electric vehicles by 2030.
With these new plans, the company has made it clear that it is committed to making its electric vehicle lineup as reliable as its conventional vehicles. For starters, retail vehicles sold by Buick will come standard with three years of OnStar service, which includes a remote key fob and OnStar safety. The company will also offer an optional Connected Services Premium Plan, which includes remote key fob and Wi-Fi connectivity, as well as OnStar safety services.
Cadillac is extending a buyout offer to any US dealers who do not want to sell its battery electric cars. Dealers have until Nov. 30 to accept or reject the offer. Those who accept the buyout will be allowed to continue selling non-EV Cadillacs until the year 2021 and can pull their vehicles from used vehicle auction stock until 2024.
The buyout offers are intended to make the transition easier for Cadillac and its customers. While General Motors has refused to divulge the exact value of the buyout offers, the offer is intended to encourage Cadillac dealers to make the switch. In 2016, Cadillac offered buyouts to 400 low-volume dealers, and the offer was initially between $100,000 and $180,000.
GM’s investment in electric vehicles
General Motors has made a major commitment to electric vehicles, committing to convert half of its North American assembly capacity by 2030. The move is a welcome step towards a cleaner, greener future. However, there is still a long way to go before EVs reach parity with gas-powered vehicles.
The company’s investment is part of a broader strategy to become a leader in the electric vehicle market by the middle of the decade. The investment is likely to result in new jobs and a total capital investment of $6 billion. The investment will also be used to retool its existing Spring Hill, Tenn. assembly plant, which is the largest in North America, for building EVs. GM plans to produce its first battery-electric SUV, the Cadillac Lyriq.
GM has also announced plans to build at least 20 new electric vehicles by 2025, with two-thirds being made in North America. Additionally, the company has announced plans to add new electric commercial trucks to its North American lineup, as well as additional U.S. production capacity for EV SUVs.
Cost of operating EVs
Despite the low upfront price, operating an electric vehicle can be expensive, especially in the early stages. The cost of a battery pack can be upwards of $12,000, and other systems can run up massive repair bills. Moreover, carmakers can sometimes hold owners hostage if a system fails. Some parts and diagnostic systems are only available from the dealer, which usually comes with a premium.
Another disadvantage of operating an EV is the cost to refuel the vehicle. Compared to gas powered vehicles, EVs have fewer moving parts, so they are less likely to break down. Additionally, they don’t require oil changes, so they can last longer. In general, EVs can save you money over the life of the car.