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I'm really curious to see how the traditional auto companies do with electric cars. Tesla owns the dealers, Chevy has a network of dealers that are used to mak
by linsomniac 10y ago
I'm really curious to see how the traditional auto companies do with electric cars. Tesla owns the dealers, Chevy has a network of dealers that are used to making significant money on service. According to Edmunds, 44% of a dealers profit comes from service.
Losing 44% of your profit is going to be a big deal to a lot of dealers.
I'm wondering if the Tesla model that so many dealer networks have been battling will be required to make the transition to EVs. A manufacturer that has, say, 40% of their dealers dry up is probably going to, for survival sake, start dealing direct. That's my theory anyway.
- ams6110 10y agoThere will still be a good bit of service work. Crash repair/body work, brakes, tires, air conditioning, random little faults like switches and sensors and fans, etc.
- linsomniac 10y agoThere will definitely be service work, but I'm expecting it is going to be a lot lower frequency than with a traditional ICE car. I mean, I have a really good relationship with my Audi service guy... Don't get me wrong. But I'd prefer to do less chatting that ends with a thousand dollar plus invoice.