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I think car manufacturers are reluctantly coming around to EVs because as you said staying with gas cars is unsustainable (how many hundreds of billions of doll
by djao 4y ago
I think car manufacturers are reluctantly coming around to EVs because as you said staying with gas cars is unsustainable (how many hundreds of billions of dollars of government subsidies and bailouts has GM consumed just to stay afloat to date?) -- but there is still a fatal flaw. Car dealers will never get on board with EVs. It represents an existential threat to them. Most of their profit comes from service, and EVs require much less service. The problem is that (most) car manufacturers are not allowed to sell to anyone other than car dealers. (State franchise laws require you to sell 100% of your cars to dealers if you have any dealers at all, and except for Tesla and some other EV startups, all the car manufacturers already have dealers.) So there is going to be an indispensable component of the automaker supply chain which will continue to be part of the anti-EV conspiracy indefinitely for the foreseeable future. Dealers also pay for more advertising than the carmakers themselves, so the media will keep fueling the fire as well.
- intrasight 4y ago>Car dealers will never get on board with EVs. I don't think that is the case. Losing much service revenue is only a threat to the current business model. The new business model is carry little inventory and have huge markups. And the smart ones will follow Tesla's lead and stop advertising and pass those saving to customers. I foresee some dealers opening much smaller retail presences in urban cores that are EV-only and have no on-site inventory besides showroom cars. People living in the city usually find themselves 30 minutes away from a traditional dealer.