SITUATION:
Is the historic automotive dealer franchise business model about to change?
Transition to EVs from Fuel based vehicles changing dealer role & services.
EVs are changing what car dealerships do and their role in auto usage.
Coming years will force car dealerships to rethink their business models.
High cost of maintaining large staffs & real estate means no more showrooms.
Potential customers are being steered away from showrooms or service centers.
SIGNIFICANCE:
Existing dealers making efforts to move to online sales and virtual showrooms.
While OEMs like Volvo (Polestar) , Ford & GM leading the way to direct sales.
Electric cars eliminate part of need–Fewer parts;
No need for regular tune ups. Plus, software can often be updated remotely.
SOLUTIONS:
The long advocating of “Build to Order” is finally here. No dealer inventory.
Orders typically take between a few days to six weeks.
Polestar offers limited colors, upholstery choices, & equipment packages.
Auto dealers will not need to keep as much stock on hand. Only samples.
Existing dealers will still be involved in answering customer questions.
Preparing the cars for home or office delivery, as well as pickup & drop-off for servicing.
SAYS:
“We feel very good about the prospect of going all EV not only about clean energy,
but bringing into new experience, going all digital and introducing customers to that experience,”
—- Mahmoud Samara, VP of sales, service & marketing for Cadillac.
SOURCES:
“You Never Need to Walk Into a Showroom’: Electric Vehicles Are Forcing Car Companies to Rethink Retail” – https://dot.la/ev-showroom-2650967336.html
https://mail.google.com/mail/u/1/#inbox/FMfcgxwLswJQPZhzFmxkTMfvxdJGpljr
contact@lacomotion.com
