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Auto dealer Brad Sowers is spending money preparing for the next wave of new electric models from General Motors Co. He is installing charging stations, upgrading service areas and training staff at his Saint-area dealership. -Louis to manage high-tech vehicles.
But when he considers how many plug-in Chevy Bolts he sold last year – new, out of the nearly 4,000 Chevrolets sold at his Missouri dealerships – it gives him pause.
“The consumer in the middle of America is just not there yet,” when it comes to switching to electric vehicles, he said, citing the long distances many customers travel on a daily basis and the lack of charging infrastructure outside large cities.
As auto executives and investors buzz about the coming age of the electric car, many dealers say they have a hard time balancing this excitement with today’s reality on new car sales lots, where last year’s battery-powered vehicles made up less than 2% of US auto sales.
Most consumers who come to showrooms don’t buy electric cars and, with relatively low gasoline prices, even hybrid models can be hard to sell, dealers and analysts say. industry.
Automakers are moving aggressively to expand their electric vehicle offering with dozens of new models expected to arrive in the coming years. Some like GM are setting firm goals for when they plan to phase out gasoline cars altogether.
Sales consultant Robert Mason Jr., center, spoke with Paul Sweeney, left, and his son, Jeff, who were buying a Chevrolet Trail Boss at Jim Butler Chevrolet in Fenton, Missouri on Friday.
Many dealers say this puts them in a sticky situation: they’re trying to adapt, but don’t know if and how quickly customers will actually make the switch. About 180 GM dealers, or about 20%, have decided to forgo their Cadillac franchises rather than invest in expensive upgrades GM needs to sell electric cars.
A GM spokesperson said the company expects some Cadillac dealers to step down and is happy that the remaining 700 or so share its all-electric targets.
Past attempts by automakers to increase sales of electric cars have largely failed, cornering retailers with unsold inventory. Even now, some dealers are reluctant to mass stock electric models.
“The biggest challenge is that dealerships have a bit of ‘crying wolf boy syndrome’,” said Massachusetts dealer Chris Lemley.
Automakers have promised for years to mainstream electric cars, but only produced low-volume niche models, he said. It reminds of Ford Motor Co.
deploying an all-electric Focus that sold poorly and piled up on its land. It was discontinued in 2018.
“So when we are told, ‘This time we really mean it,’ it’s easy to be skeptical,” Lemley added.
Some buyers are also uncertain. Joe Daniel, energy analyst at the Union of Concerned Scientists, said he was determined to buy an electric car, but ultimately gave up on his efforts after realizing there weren’t enough public charging stations around. of his apartment in Washington, DC Without a place to plug in, the purchase didn’t make sense, he added.
“For electric vehicles to take off, they have to be as practical as gasoline-powered cars – that’s the point of this big purchase,” Daniel said.
No more long waits at charging stations: Chinese electric vehicle start-up NIO is pioneering battery swap systems, challenging Tesla and other competing automakers. Here’s how NIO and Tesla are competing for the world’s largest electric vehicle market in China. Photo illustration: Sharon Shi
To solve such problems, President Biden has said he wants to spend billions of dollars to upgrade the country’s charging infrastructure as part of an initiative to encourage battery-powered cars.
Ford, GM and other major automakers say they are confident in their new electric vehicle offerings and train dealers to sell and service them.
Still, some auto retailers are worried about the long-term implications for their business.
You’re here Inc. of
the influence in the electric car market has created a new standard for car buyers, offering online transaction and simplified range without price negotiation. Other electric vehicle startups, like Rivian Automotive and Lucid Motors, say they will also sell direct to consumers and bypass traditional dealerships.
Some automakers are now following their lead, initially stocking dealer lots with little or no electric models and allowing customers to order more directly from the manufacturer.
Volvo Cars CEO Håkan Samuelsson recently said that all future battery-electric vehicles will be sold exclusively online and the price will be set centrally, eliminating the possibility of haggling. The dealers will help deliver vehicles to customers and provide other services, such as maintenance, he said.
“The market is moving from the physical concession to the Internet. This is what will happen in the next 10 years, ”said Mr. Samuelsson.
Howard Drake, a GM dealership in Los Angeles, said he is considering converting two of his showrooms. Rather than segregating models by brand, he envisions two stores, one for electricity, the other for gasoline vehicles.
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“They are really different customers,” said Mr. Drake. “A buyer of Hummer electric vehicles probably doesn’t want to be sitting next to a guy buying a gas guzzling van.”
Mr Sowers said he saw encouraging signs. GM recently lowered the sticker price of the all-electric Bolt and helped boost sales of the model in February. But he said his electric vehicle inventory will remain small as it is uncertain about long-term demand.
“It’s still very early,” said Mr. Sowers.
As soon as dealers figure out how to sell electric vehicles, another business problem lurks in the service bay.
Troy Carrico worked on a Chevrolet Corvette.
Electric vehicles generally have fewer mechanical parts and do not require the same type of service as gasoline-powered cars, such as oil changes. This job is currently a big profit center for dealerships.
“There will be an impact, but it may take three or four years to see the full effect,” said Lemley. “It really is my biggest question mark in all of this.”
—William Boston contributed to this article.
Write to Nora Naughton at [email protected]
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