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EVs will crush revenues on maintenance, servicing, and spares, since there are fewer and simpler parts. These revenue lines are very high-margin. Its probable
by Creationer 7y ago
EVs will crush revenues on maintenance, servicing, and spares, since there are fewer and simpler parts.
These revenue lines are very high-margin.
Its probable that one major global auto company will fail in the next decade.
- srfilipek 7y ago> revenues on maintenance, servicing, and spares The OEM doesn't make money on replacing parts or service. The Tier-1 / aftermarket suppliers and the mechanics do.
- navigatesol 7y agoExactly. But the Tesla saga has taught me that the technology sector knows very little about the auto industry.
- codinger 7y agoDefinitely, I saw this from working on hybrids when I was a mechanic. The transmissions were simpler, the engine rarely needed any work since they ran less than a gas only car. They barely needed any brake work since the electric motor does most of the stopping. A full electric pretty much eliminates all the work besides replacing tires and replacing the brakes maybe once in the car's lifetime. Some customers with older evs will need new batteries but the price of a battery is so expensive that dealers won't have a lot of room for markup and it only takes a few hours to replace one.
- navigatesol 7y ago>These revenue lines are very high-margin Any source for that? Auto repair is extremely competitive, and laws forbid manufacturers from restricting where repairs can be done. So how is it high margin?