Mandal: Buick, GMC consider franchised dealers an advantage

Buick and GMC — and General Motors more broadly — have signaled that they are committed to their franchised dealers, even as the automaker electrifies more of its vehicle portfolio and experiments with subscription services, said Bo Mandal, chairman of the Buick-GMC National Dealer Council.

In fact, said Mandal, CEO of Mandal Automotive Group in Biloxi, Miss., the brands have "no interest" in moving toward direct sales or taking more control in the consumer transaction.

"The one thing I love about General Motors, what they believe is that their dealers — all of their dealers — are a strategic advantage for them to go to market, whether it be ICE or EV," he said. "I mean, think about it: There's 4,000 brick-and-mortar signs and locations across America on every corner. It's a clear advantage. You can pop into any one of these places and look or buy an EV."

GM has said it could achieve as much as $25 billion in revenue by 2030 from software and services. In August, GM said it had started requiring buyers of new Buick and GMC vehicles and the Cadillac Escalade to pay $1,500 for a three-year subscription to OnStar, GM's in-vehicle safety and security service. OnStar previously had been optional.

Mandal said the automaker's plans for subscription services that can be enabled after a vehicle's purchase are under development.

"Dealers believe that we should be part of that process, especially if we're delivering the vehicle. And the second part of that question is, so does General Motors," he said. "GM believes that we are absolutely part of whatever that revenue is, and subscription base is, moving forward. It's a long way from development, of course, but they've been very transparent with us, saying, 'Hey, this is going to be a big part of what you guys do, as well.' "

GM's chief digital officer, Edward Kummer, affirmed the automaker's commitment to its franchised retail network.

"GM believes dealers are critical to our success by generating demand and providing ongoing support," Kummer said in a statement to Automotive News. "They are an important part of the journey we are on to introduce more EVs, software-defined vehicles and other digital features that will enhance the customer experience. GM and its dealers are focused on meeting customers' needs on their terms, and keeping customers at the center of everything we do."