Profits for dealers are razor thin.
Dealers Seeing Razor-Thin Margins On $100K+ GMC Hummer EVs
The GMC Hummer EV is one of the most exciting new vehicles on the market, reinventing the iconic Hummer nameplate as an all-new, all-electric off-road machine. Pricing for the GMC Hummer EV can easily eclipse the six-figure mark, such as with the range-topping Edition 1 trim level, but as GM Authority has learned, GMC dealers aren’t collecting much profit from the sale of the Hummer EV Edition 1 Pickup.

As it stands, the MSRP, Invoice, Employee, and Supplier price are all the same. The only dealership profit is in holdback, which has to be done perfectly and doesn’t always pay out. Holdback for the GMC Hummer EV is around $3,000, which isn’t nothing, but is more on the level of the GMC Acadia than what one may expect from the six-figure Hummer. In fact, it is not even on the level of profit for the GMC Sierra 1500, let alone the Sierra HD, even though the Hummer is nearly twice the price of many HD trims.

What’s more, in order to get this business, dealers have to get a list of customers with GMC Hummer reservations and log an abundance of hours with customers answering questions about the vehicle, timelines, and more. Some dealers have been working with Hummer customers for the last two years now, with no end in sight and not a single vehicle delivered thus far, which could be considered too much work for such a tiny invoice.

Additionally, many sales people have pay plans that are based on front-end profit. On some pay plans, the pricing means the sales person wouldn’t get paid any more than a mini deal on a Chevy Sonic. To note, not all pay plans consider holdback to be profit, at least as far as the salesman’s front-end pay is concerned.

It’s also worth noting that dealers were required to make several major upgrades just to sell the new GMC Hummer EV, including the installation of EV charging stations that could require extensive electrical overhauls for the entire dealership, brining costs as high as $50,000 in some cases.

Furthermore, GM has communicated that it will be analyzing Hummer EV deliveries and surveys with a microscope. And yet, despite producing a vehicle with extensive requirements of the sales people, the payout is relatively meager.

As a reminder, the GMC Hummer EV is available with both a Pickup and SUV body style. The GM BT1 platform provides the bones, while GM Ultium battery and GM Ultium drive tech provides the motivation. Output can range as high as 1,000 horsepower. Production takes place at the GM Factory Zero plant in Michigan.