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General Motors is using Costco to help it sell more EVs

Tom Carter   

General Motors is using Costco to help it sell more EVs
  • General Motors is turning to Costco's Auto Program to help it sell more EVs.
  • The wholesaler partners with automakers and dealers to offer discounted vehicle prices for members.

General Motors is turning to Costco to help it sell more EVs.

According to a CNBC report, the Detroit automaker is selling its electric vehicles through Costco's Auto Program, which allows members to buy cars at discounted prices.

GM North America President Marissa West told CNBC she saw a "huge opportunity" to sell EVs to Costco's 50 million-plus US membership base and that GM was exploring new ways to build its partnership with the wholesaler.

"We have a great partnership with Costco, and I'm really bullish on Costco because I like their brand," said West.

Business Insider contacted GM and Costco Auto Program for comment but didn't immediately hear back.

Costco Auto Program general manager Jay Maxwell, meanwhile, told CNBC the company had seen an uptick in interest in EVs among its members, with around 7% of member requests for vehicles to Costco Auto in 2023 relating to electric vehicles.

Costco Auto does not sell cars directly. It partners with dealers and automakers to allow members to buy vehicles for discounted prices.

The partnership with Costco comes at a crucial time for GM as it gears up to release a range of new affordable electric models in the coming years.

GM sub-brand Chevrolet recently released a new $43,295 Chevrolet Equinox, and is planning an updated version of the electric crossover for later this year, which is expected to be priced at under $30,000 with tax incentives.

A new Chevrolet Bolt is also in the pipeline, with Chevrolet promising it will be the "most affordable EV on the market" when it launches in 2025.

It also comes as automakers revise their EV strategies amid slowing demand for electric vehicles in the US.

Ford slashed production of its F-150 Lightning pickup, and GM has reversed course by pledging to continue selling hybrid vehicles in the US alongside its electric offerings.

Until then, Costco members will certainly see the benefits. The wholesale club recently announced that members will be able to get $1,000 off a selection of electric vehicles this summer, including models from Cadillac, Chevrolet, and Volvo.