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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
 

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Pretty Trusting of Dealers, $200K+ investment to make a return of ???? of X numbers of Units, and for how long of a life span??

I would love to read this EV Dealer Agreement, there has to be a lot of New Wording.
 

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So how are they going to handle trades? Or are we to assume that nobody wants to trade their Gas burning truck for a Coal burning one?
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.
 

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I would expect some dealerships to buy one for themselves to drive and show - at least after the first model is sold out.
 

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This will prove to be interesting. I can just about figure a few will still try somehow, and lets just see what happens to them.
 

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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.
 

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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.
So kind of like ordering online and picking up at Best Buy, Walmart, Target, etc.... Seems to make sense.
 

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Perhaps treating Dealers more like retail outlets would fix this issue. Dealerships are the final Wild Wild West of retailers
 
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