Posted on 12/20/2023 9:07:57 PM PST by Ronaldus Magnus III
OK, back before the last Ice Age I was general manager of a Honda dealership, so I'm slightly conversant.
A dealer has a franchise contract with a manufacturer. Most dealerships have franchises for numerous lines, so there's no exclusivity involved unless the dealer himself wants it that way. (The dealership I ran WAS exclusively Honda, but the owner had other stores that sold other makes. We didn't advertise it.)
The one thing that dealers DREAD is having cars on the lot that aren't selling. He has a line of credit called a "floor plan" that pays the mfgr. for the cars, and he's paying interest on that loan. The mfgr. dictates his minimum inventory, so a model that isn't selling is an albatross around the neck of a dealer. We had a couple in my time.
If a dealer decides to give up a franchise, the mfgr. will buy back any cars he has in stock, ditto any spare parts, accept return of any leased service equipment, point-of-sale display materials, and other minor stuff. He will no longer be allowed to advertise himself as a dealer, but he COULD continue to service the brand if he chose. This isn't minor - a large part of the profit is in the service department. The dealers' markup on the cars is actually rather small.
Occasionally the mfgrs. engage in a nasty tactic called "pipeline stuffing". Basically forcing the franchise dealers to take more inventory than they want, to make the corporate sales figures look better. I don't doubt that GM and probably Ford are engaged in this to get rid of the EVs they committed to build but the dealers can't sell. If I were still in the racket, I'd be telling my owner that it's time to pack it in and put his money into real estate.
Yes, few are left.
I was looking for a car and checked Buick dealer nearby.
They have only 3 different SUV’s to sell. Small Chevy vehicles somewhat spruced up. Made in Korea and China.
Buick does not sell cars anymore.
I think they are popular in China.
But here, they are dying.
If I were Buick dealer, I would take the money and shut down the shop, before is too late.
Too bad about that. I’ve always been partial to Buicks and wish I still had my dark blue ‘85 Riviera.
The “new” cars for the last 20 years all look the same, especially the foreign ones. Cars are no fun anymore.
Well, I own a Tesla, and there’s no chance I’d own any Buick manufactured after 1955…
“ They have at least one gasoline-powered vehicle that takes 4-5 minutes to ‘charge”
I was sitting at the stoplight yesterday behind a big diesel dually with a bumper sticker on the back window “600 mile range 3 minute charge”
My first thought also. I didn't know Buick was still a thing.
So, the "buy-out" mentioned in the title is actually a "buy-back?" The dealership divests itself of all of its showroom stock (plus incidentals)?! Wow!
That puts everything in an entirely different light for me!
Thanks for your detailed and understandable explanation!
Regards,
This may have less to do with EVs and more to do with dealers who realize that Buick is a dying brand that may not be around long enough for the investment in new equipment to pay off.
That's how it works in the parts of Europe I've been to. No big dealer showrooms and lots full of cars like we've had here, historically speaking.
One might think that by cutting out the STEALERSHIPS the cost of the car would go down, and they'd be wrong. Cutting out the middleman doesn't always reduce the price, it just shifts where the profits go.
That's a BRILLIANT bumper sticker. Going to those printed up for my Pickup and SUV. Rub the EV owners noses in it!
And just wait until the Chinese get their EV plants in Mexico going and start pumping the US with their cheap crap.
Everyone will be competing with them.
A sideline to GMC.
Lot’s of interest piling up on all those un-sellable pieces of plastic, metal, and lithium.
“Cars are no fun anymore.”
When America was stiil America, you could still actually tell cars apart.
I suspect the dealerships are rightfully worried that the Buick brand is going the way of Oldsmobile (d. 2004) and Pontiac (d. 2010), and don’t want to invest a bunch of money on equipment for it.
I have two of them. I live in Florida. I love these cars. But take them north in freezing weather, they lose a big amount of range per charge. If you just commute 100 miles a day, in cold climate, not a problem. But more than 100, you get range issues. You can set the battery warm prior to driving, and that helps.
I can see the battery range drop now on cold nights, when below 50 degrees. Maybe 10 percent. Most of it is lost in creating the cabin heat for passengers. But you can warm it up before leaving the garage, interior and battery, while its plugged in.
When I get an impatient driver behind me, tailgating, I switch the car into “sport mode”, and punch the accelerator. It takes off like a rocket. These cars are extremely fast. Very dangerous for a teen with little driving experience.
These cars have between 250 to 500 horsepower, with center of gravity near wheel level. Instantaneous power slams into wheels. A new driving experience.
To clarify, I own BMW and Hyundai EV’s. Not a Buick.
GM, Ford, and Chrysler for historic reasons have way too many dealerships. They have been trying to thin the ranks for years.
They only sold 103,468 Buicks in 2022. Sales are up somewhat this year. They might do around 160,000.
Locally, all the Buick dealers are also GMC.
That’s a beautiful land yacht. Just looking at the picture...I can FEEL the weight.
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