General Motors (GM) in the US has partnered with wholesaler Costco to revitalise its slowing electric vehicle (EV) sales, according to news reports in the US. The automaker plans to leverage Costco’s Auto Program to expand its reach to a broader audience.
Marissa West, GM’s North America president, told CNBC she is “really bullish on Costco” and highlighted a “huge opportunity” for GM through this collaboration to expand its vehicle portfolio, including its EV offerings.
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Costco’s member-only Auto Program does not sell cars directly. Instead, it connects shoppers with dealerships for purchasing new and pre-owned vehicles. Acting as an intermediary, the program collaborates with companies such as GMC and Volvo, offering deals, incentives, and access to both petrol-powered and EV models.
Currently, US Costco members can receive a US$1,000 incentive if they lease or buy a new 2023 or 2024 Chevrolet model, including GM’s Chevrolet Blazer EV and Chevrolet Equinox EV. This promotion ends on 31 July and applies exclusively in the US.
With the auto industry rapidly shifting towards EV production, GM’s partnership with Costco could give it a competitive edge 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, noted that the program has averaged 500,000 car sales annually over the past five years. Costco, boasting over 70 million household members, has a customer base open to new offerings such as EVs.
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By GlobalDataMaxwell stated that Costco’s program is a “great way for the automakers to market and get their EVs in front of people that are interested.” He emphasised that Costco’s demographic aligns well with EV buyers.
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