Hummer Online Reservations: GMC Dealers Mad They Can’t Add Huge Markups
GM has changed its decades-long selling procedure for the coming GMC Hummer EV. With minimal dealer involvement, you can order your Hummer directly from GM over the next several years at least. It says that its EV shopping protocols in general will “evolve” as well. Obviously, GM is body blocking its GMC dealers and they’re not happy. But that’s mainly because they miss out on huge markups dealers are prone to do when a hot model is introduced.
GM says that the Hummer buying process will be different
GM says that Hummers will eventually be seen in GMC dealer showrooms but the buying process will be different according to Phil Brook, VP of Buick and GMC marketing, told the Detroit Free Press. “This vehicle allows us to take a different approach,” Brook said. “The market is evolving and changing and we’re changing, but we are working through the dealers. We see our dealers as a huge competitive advantage for us.”
GMC Hummer dealers see it differently. When the Hummer EV pickup was revealed last October preorders for it were sold out in minutes. GM is mum about the number but estimates are around 10,000 were ordered. The waiting list to order one continues to grow.
The Hummer SUV Edition 1 follows the same order procedure as the pickup
Now that the Hummer EV SUV Edition 1 has been introduced it follows the same order procedure. The Edition 1 pickup starts at $112,595. Cheaper versions will be available in 2022 with MSRPs starting at $80,000. The SUV has similar pricing. Hummer’s Edition 1 SUV will be $105,595. Add the Extreme Off-Road Pack and the price jumps to $110,595.
The range for Edition 1 is 300 miles on a full charge. With the Extreme package that range number drops to 280 miles. “It could be a year or year-and-a-half, but about six months before your vehicle is due to be produced the dealer will contact you and a formal buyer’s order will be entered into,” Brook said. “That makes it official.”
Part of the GMC dealer’s beef is that they are required to invest in additional infrastructure in order to sell the Hummer. There is also training for both sales and service that needs to be absorbed. Over 600 dealers have opted not to step up to the Hummer sales investment.
“GM has a plan to transition to EVs in a big way and GMC will be part of that”
That may work for them now but as you know GM is doubling down on electrification. In the next few years, everything it makes will be electric. Those 1,200 dealers that have signed up for the Hummer will be set up for future GMC products that are sure to come. “GM has a plan to transition to EVs in a big way and GMC will be part of that, obviously,” Brook said. “This investment is the first step in that process. It’s not a one-and-done thing. It’s the start of a long-term investment.”
GMC looks to Hummer to be its flagship for both quality, features, and capabilities. The CrabWalk feature is one such example. But you have to wonder how long GM has looked forward to cutting out dealerships. This way it gets all of the money and leaves the service end to a separate entity.
Hummer Dealers will surely make money from service but nothing like how it is for ICE vehicles. And those obnoxious markups for hot models will be a thing of the past. Dealers never deserved gouging customers like that.
