June 16, 2024
News

GM utilizes Costco partnership to enhance electric vehicle sales in the United States

General Motors (GM) in the US has partnered with wholesaler Costco to revitalize its slowing electric vehicle (EV) sales. GM plans to utilize Costco’s Auto Program to reach a wider audience.

Marissa West, GM’s North America president, stated to CNBC her optimism about the partnership with Costco and the significant opportunity it presents for GM to expand its vehicle lineup, particularly in the EV segment.

Costco’s member-exclusive Auto Program acts as a bridge between shoppers and dealerships for new and pre-owned vehicle purchases. By partnering with companies like GMC and Volvo, Costco offers deals, incentives, and access to both traditional and EV models.

Currently, Costco members can receive a £1,000 incentive when leasing or purchasing a new 2023 or 2024 Chevrolet model, including GM’s Chevrolet Blazer EV and Chevrolet Equinox EV. This promotion ends on July 31.

With the automotive industry shifting towards EV production, GM’s collaboration with Costco could provide a competitive advantage over rivals such as Tesla, Rivian, and Volkswagen. However, GM has not disclosed the number of vehicles sold through the Costco program.

Jay Maxwell, a general manager overseeing partnerships for Costco’s Auto Program, mentioned that the program has averaged 500,000 car sales annually over the past five years. With over 70 million household members, Costco has a customer base receptive to new offerings like EVs.

Maxwell highlighted that Costco is a valuable marketing avenue for automakers to showcase their EVs to interested individuals. He emphasized that Costco’s customer demographics align well with EV buyers.

GM is poised to benefit significantly from this collaboration. Numerator’s data indicates that Costco’s primary shopper demographic consists of high-earning consumers making over £100,000 annually, followed by middle-income shoppers earning between £30,000 and £100,000 per year. This financially stable customer base presents an ideal market for promoting and selling GM’s EVs.

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