Every EV stock I track regularly is down today except Ford. There’s more going on here than what meets the eye. Ford, Kia and GM (arguably the traditional auto manufacturers with the most compelling and, at the low end of their pickup lines, the most affordable EVs) have all issued letters of warning to dealers charging prices over MSRP to stop doing so at risk of losing access to product.
Dealers, on the other hand, are saying the OEMs are setting invoice prices so close to MSRP that they can’t make enough profit to survive.
Someone (or both) are being disingenuous.
We’ve all dealt with sleazy dealers/salespeople but most of us haven’t dealt directly with the OEMs. It’s easy to side with the OEMs due to negative dealer interactions, but there are honest, reputable dealers out there who support their communities and don’t charge over MSRP, or at least haven’t yet. I know that because I worked for one of the best, Classic Chevrolet.
The OEMs might be thinking to compete economically with Tesla, Rivian, Fisker and the coming hordes of EV manufacturers that have no dealers, they need to cut out the middle-man and keep more of the profit for themselves.
That being said, we need EV service centers, throughout rural America, for rural owners as well as long-distance travelers. Small towns need dealerships for the jobs and tax revenue they generate.
My advice to dealers is charge full MSRP, minus OEM-funded incentives.
That’s what I did, but more importantly, that’s what Tesla does. Even a 100,000 vehicle order from Hertz didn’t generate a discount from Tesla!
IF you can provide value (e.g. answer their EV-related questions, provide EV accessories & bling, guide them through the government incentive programs, provide EV education without sales pressure, etc) you have a shot at survivng the disruption EVs are bringing. Most EV consumers will pay for access to your expertise.
Be a valued resource, but get the profit you deserve by providing that service.
Charging over MSRP may help you survive this month, but it will doom you in the end and that end may not be much further down the road.
https://lnkd.in/eCcbvrzh
#autodealer#electricvehicle#disruptiveinnovation#TheEVangelist
About the author
An accidental EVangelist: On my way to work at Apple one morning, my car was rear-ended (and totaled) by an SUV, driven by a guy playing with his smartphone.This led me to get my first plug-in vehicle.
I started blogging about my experiences immediately.
A year later, in 2013, I was hired by the dealership as their "EVangelist."
I became a board member with the Texas Electric Transportation Resources Alliance (www.TxETRA.org) and perform public speaking in the DFW area regarding electric vehicles and environmental issues.
I also teach others how to sell plug-in vehicles or manage EV sales.
I'm on a mission.
