General Motors is giving its Buick dealers an ultimatum – invest in the company’s future as it transitions to an all-electric future, or take a buyout. However, with the minimum upfront costs ranging from $300,000 to $400,000, some Buick dealers are apparently taking GM up on its buyout offer.
As part of GM’s commitment to an all-electric lineup, it will convert all of its brands – Chevy, Buick, GMC, and Cadillac – into EV-only brands as it phases out gas cars.
To do so, General Motors, like most legacy automakers are realizing, will need to work with its dealers to make the transition as efficient as possible and to compete in the expanding EV market.
That’s a task that’s easier said than done. For one thing, dealerships need certain upgrades for charging infrastructure, retooling, and training employees.
After receiving pushback from some dealers in 2020, GM offered up to $500,000 in settlements to Cadillac dealers that didn’t want to invest and sell EVs as it geared up for the launch of the Lyriq.
General Motors is doing the same with its Buick dealers as the brand prepares to release its first electric vehicle in the US in 2024 on its way to becoming a fully electric brand by the decade’s end.
Buick Electra E5 released in China (Source: Buick)
Some Buick dealers opt out of GMs all-electric future
According to the Detroit Free Press, there are at least a few Buick dealers not ready to invest and take part in the auto industry’s future.
Although a GM spokesperson declined to comment on the number, a Buick dealership owner (who wanted to remain anonymous due to the buyout terms) told reporters the company offered him inventory from other franchises that took GM up on its buyout offer.
Meanwhile, a metro Detroit area Buick dealer told the Detroit Free Press that, as far as he knows, all Buick dealerships in the metro area are investing in selling electric vehicles.
In a statement, Sean Poppitt, a Buick spokesperson, said:
We see Buick’s dealer network as a business advantage, and they will remain a critical part of the retail and relationship chain with customers. Acceptance of an offer is voluntary, but all Buick dealers who remain must be adequately prepared to sell and service Buick EVs.
Poppitt added that the minimum investment for Buick dealers to sell EVs is around $300,000 to $400,000, but it could vary depending on the size and other GM brands they offer.
Buick is preparing to be an all-electric brand by 2030, with its first fully electric vehicle in the US expected in 2024. The automaker gave us a glimpse of what the brand could look like in the electric era with its Wildcat EV concept. In addition, Buick just released its first Ultium-based EV in China, with the “Electra” brand name slated to arrive in the US.
Electrek’s Take
As GM and other automakers look to catch Tesla in electric vehicle sales, they are realizing the need to streamline the process to make it as efficient as possible.
Part of the process includes slimming up operations and getting the dealerships that want to participate the resources they need. Ford said earlier this month that two-thirds of its dealers joined its Model e program to sell EVs, leaving the other one-third without any until 2027.
As Buick transitions toward an all-electric future, it may make sense for GM to operate from fewer dealerships.
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As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.
Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.
That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.
“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”
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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.
In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.
Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)
“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”
The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”
Electrek’s Take
Xpeng EV with Turing AI and Bulletproof battery; via XPeng.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
T7X all-electric track loader at CES 2022; via Doosan Bobcat.
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.