GM Inside News Forum banner

GM Plans to Crack Down on Dealership Markups of the New GMC Hummer EV

3K views 10 replies 10 participants last post by  chevydlrmn 
#1 ·
GM Plans to Crack Down on Dealership Markups of the New GMC Hummer EV
General Motors plans on keeping its GMC dealers on a short leash to make sure they don't ruin the roll-out of its new electric supertruck.
The Dirve
Stef Schrader
November 30, 2020

GM wants to exert more control over sales of the new Hummer, discouraging markups over and discounts from MSRP and handing out inventory in response to customer orders, reports Automotive News. It's a bit of a test run for the General as to whether they can get away with more control, but from a consumer standpoint, much of it really sounds like common-sense measures not to frustrate would-be buyers. Clearly, the last thing GM wants is for someone to rage-quit the Hummer sales process to go buy a Rivian or a Cybertruck.

This is all codified in GM's electric models participation agreement, a copy of which a dealer shared with Automotive News. GM also makes it clear in this agreement how they will limit dealers' interactions with Hummer buyers. In fact, the first couple years of reservations will go through GMC.com, at which point a dealership will receive only what customers order. There will be none of the usual bulk allotments that we're used to seeing on dealerships' lots, so don't expect to roll up to your local GMC dealer and get to pick from one of a row of new Hummers.

The entire process sounds a lot closer to the direct sales model pursued by many EV startups than it does the usual dealership-based one we're used to with GM and other more established automakers. Per Automotive News, GM President Mark Reuss touts this plan as trimming the "waste" from its dealership model, blending the benefits of an established, widespread dealership network with the trimmed-down process of online sales.
*Full Article at Link
 
See less See more
1
#5 ·
Dealers are going to have to be competitive. I see lots of threads of people selling to carvana, carmax to name just two easy to sell middlemen. In TX, the primary advantage of the dealer is sales tax is collected on the difference of the trade/purchase. So the dealer gets 6.25% advantage over anyone else. I expect the carrot GM is providing to the dealer is better margin on these sales. Hummers are not inexpensive after all.
 
#8 ·
They were talking about this on Automotive News this weeks, the way I understood it, for the first couple years, all Hummer EV sales will be through GM/website and then given to a dealer to complete the transaction, that has already been negotiated, and with no stock units for the first couple years, it seems possible.
 
#9 ·
So kind of like ordering online and picking up at Best Buy, Walmart, Target, etc.... Seems to make sense.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top