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mattm
mattm Reader
6/12/22 4:39 p.m.
SV reX said:

In reply to mattm :

I agree.  Dealerships are in a tight.

The difference between the Tesla experience you are describing and traditional dealer experience is that Tesla BUILT that sales and service system from the ground up with the express purpose to disrupt the existing and capitalize on loopholes.

The existing dealer network was built by the MANUFACTURERS.  They will have to dismantle the very system they built and try again.

Sounds like the wolf guarding the hen house.  I don't trust manufacturers to accomplish that, and see no evidence that they will be skilled at it. It's like a cruise ship or a cargo ship trying to do the job of small ferry boat.

Honestly, I don't see it as an A/B choice.  I think the system is ripe for an entirely new "C" option.  I think service and sales brokers could step in with an entirely new Tesla-like system functioning as preferred vendors of the manufacturers and be far more likely to succeed than the manufacturers.

OEMs are not going to do well dismantling the system they spent 100 years building.

There are a lot of moving parts here and, I think, multiples ways this could shake out.  The only completely non viable option to my mind, is no change.  They VW EV model is to allow the customer to order online with a fixed price, and an agreed upon margin (unknown by the customer) that has been negotiated between VW and its dealer network.  This is the least capital intensive option from VW themselves and keeps them out of court with the dealer lobby.  How successful it will be as the EV sales displace ICE in volume remains to be seen.  If dealer profits drop many years from now, I would assume they could make things difficult for VW.

GM has been reducing dealers post bankruptcy everywhere they can. Imposing new requirements for EVs that show some dealers self selecting out of the game.  This seems to be the path for the Koreans as well, just less self selecting out for EVs. 
 

Ford seemed on a similar path until this year, where they have made it known that they will split the ICE and EV business.  I'm certain that they could stipulate that the new organization isn't obligated to honor the franchise agreements made previously by the ICE organization.  Will Ford E go that way?  Will they build their own Ford E network as Tesla have done?  Tesla just opened two new plants which should be enough to double their output, and they started work to double the size of the Shanghai plant.  They are sold out of everything but the Model 3 for a year and the Model 3 for 3-6 months.  Ford has sold out of V1 lightnings and V2 will be a completely new design.  The race is on, and it is has been fun to watch so far.

Steve_Jones
Steve_Jones Dork
6/13/22 12:57 a.m.

In reply to mattm :

Ford E will have to build out a new network as no dealer will invest the money to service a car they're not selling. 

pointofdeparture
pointofdeparture UltimaDork
6/13/22 1:13 a.m.

In reply to Steve_Jones :

I'm not so sure about that. The majority certainly won't go for it, but there will be dealers willing to step up to be THE EV service hub within a ~100 mile radius or whatever. They might even be given the option to sell Ford E because they play nice *wink, wink*

frenchyd
frenchyd MegaDork
6/14/22 11:06 a.m.

Interesting suggestion.  
   Yes there will be diehards who insist on selling inefficient ICE  only.  Forward thinking dealers will realize that 95% of buyers just want whatever gets them around at the lowest cost.   ( I'm going to assume EV's will fall into badge engineering. Selling upscale EV's for those who need to feel special). 

I can see where the EV specialist will perhaps erect charging stations in the area he serves profiting in part from charging.  Just like Tesla is doing with their nationwide push for charging stations all over the country.        

fidelity101
fidelity101 UberDork
6/14/22 11:10 a.m.
SV reX said:

When manufacturers start annointing repair shops, they will develop a preferred vendor system. I already work with many if their preferred vendors. They are terrible. And grossly expensive. 
 

I recently did a Jeep dealership. One of the required elements was a big fiberglass rock in front of the building for the vehicles to be displayed climbing. 
 

The rock came in 4 large fiberglass pieces. The preferred vendor was the ONLY one allowed to install it. It took 1 man 3 hours to bolt it together (after he finished his coffee).  No helper. No crane or lifting equipment. Just an adjustable Crescent wrench. Anyone on this board could have done it with no experience or instructions. 
 

The bill for the preferred vendor for installation only was $10,000. 
 

The "Rock Guy" is pretty smart. That's all he does. Drives around the country bolting together fiberglass rocks.  
 

OEM preferred vendors repair shops will be a hoot. 

where I can apply to be "rock guy" I like this job

Steve_Jones
Steve_Jones Dork
6/14/22 3:30 p.m.

Well Ford the manufacturer would now have a bunch of angry customers since they are all under a recall/stop sale.  I wonder how they would deal with it?

STM317
STM317 PowerDork
6/15/22 9:51 a.m.

In reply to Steve_Jones :

Theoretically, it should be a bit easier to deal with shouldn't it? Since the EV-specific  OEM owned stores would have EV-specific techs, and the recall can be handled with an over the air update, I'm guessing it would be resolved more efficiently than if they had to go through a privately owned dealer with inexperienced techs.

GameboyRMH
GameboyRMH MegaDork
6/23/22 6:55 p.m.

Just ran across some interesting news, slightly used cars are starting to sell for more than brand new ones, does that dealerships are adding negative value?

https://www.thetruthaboutcars.com/2022/06/used-cars-stop-doing-what-buyers-complain-about-depreciating/

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