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So, if a dealership makes most of their profit from service and repairs - how will they survive when their brand becomes all EV? All of these manufacturers saying they’ll be 100% electric by the end of the decade - yet no more oil changes, spark plugs, cam seals, transmission fluids, driveshafts, and so on to do for the car that is basically just a battery and electric motor(s) hooked up to the wheels - how can a dealership survive on mostly just sales commission? If I’m an investor, why would I want to put money into say buying a Mercedes’ dealership if in 10 years, I have no way to make any money servicing and fixing all of the thousands little parts that make up the engine, transmission and driveline?
And I guess all of the indi shops will basically go out of business or become a tire and windshield wiper shop too?
Everybody praises Tesla - but they hardly have a dealership network in comparison.
Guess we’ll find out… but seems like instead of 5 VW dealerships in a city, it’ll become more like 5 within your state someday. Seems like a problem for the manufacturers to figure out! You can make them all you want, but if you can’t really sell them very easily, what’s the point then?
Not only that, but the parts stores like AutoZone, Advance, etc.. will also suffer. If I owned stock in those types of companies I'd probably dump it before too much longer.
Stock? You made me happy, cuz I bought stock in an EV company. But, cuz of the slow start with Lithium batteries stalling since the Russian Invasion...that's ok...I'm just waiting.
Buy now, tho, I'd say. (I also bought in Carnival Cruise Lines ---they HAVE to come back, right?...hopin'.)
Dealerships will go from mega operations to showrooms and service bays; think a car selling PepBoys.
Besides the revamped vehicles order taking customization sales area, there will be accessories and parts that would initially be limited to only dealer available until aftermarket items take hold.
Service will still be big, maybe not paid for by the consumer but rather already cost padded into the sales price. Although EV's have less items to service, they have their own unique maintenance needs that dealers have to perform. You also have standard chassis/body/suspension/steering/braking items like many other vehicles and those need regular service. Right now, I would guess that 90% of today's EV buyers have about as much vehicle mechanical maintenance ability as a frog; sure they can find 4,000 apps, videos, chats, tweets and discussion about the technical aspects of a repair, but to know how to use a wrench, pleasssseeeee.....
Dealership networks have been downsizing for years now so it should be a natural attrition process.
Modern gas powered vehicles don't require a lot of maintenance either.
I have my little side biz repairing electronics becuz...I can.
Electronics find imaginative ways to break, and the NEWER they are, the more error prone they are. I see no reason it does not extend to car electronics (and in fact, it does.) PLUS! unlike any beer drinkin snapback hat wearing guy with a kmart toolset, you cannot DIY. so this plays better for the dealers. captive audience. the smartest guys around bring me their marantz to fix the hum cuz it scares them crapless. I see this being no different.
I have my little side biz repairing electronics becuz...I can.
Electronics find imaginative ways to break, and the NEWER they are, the more error prone they are. I see no reason it does not extend to car electronics (and in fact, it does.) PLUS! unlike any beer drinkin snapback hat wearing guy with a kmart toolset, you cannot DIY. so this plays better for the dealers. captive audience. the smartest guys around bring me their marantz to fix the hum cuz it scares them crapless. I see this being no different.
I think your comments point in the right direction. The EVs don't have the mechanical complexities of an ICE, but how many sensors do they have? They need to keep the batteries at the right temperature too. EVs driving along rough roads shake all those electronics around and all it takes is for a couple of sensors to malfunction, and then what happens?
Here in Germany, I know a few people who are employed as bicycle mechanics. They have gotten big salary increases in the past year, largely due to their skills in diagnosing and fixing the new generation of electric assist bicycles. A large percentage of new bicycles sold are now e-bikes, and guess what, the complexity of fixing them is way beyond what most owners can tackle with the regular assortment of bike wrenches. E-bikes are sold in the millions, whereas EVs are still counted in the thousands per year, so I think the comments from the bicycle mechanics have some merit.
Most won't survive. The ones that do will have to evolve and adapt.
Transitions are tough. Currently, most dealers are in the denial stage.
Exactly - Rochester Carburetor got into fuel injection when they saw the writing on the wall, and are still in business.
Carter Carburetor did not transition and are long gone.
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