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Transportation

Are Car Dealers Slowing the Adoption of Electric Vehicles? (msn.com) 384

"Dealers don't want to change the model. They want to be the gatekeepers." That's according to Daniel Crane, a law professor at the University of Michigan who studies the laws and economics of car dealerships. He's quoted in a Washington Post article warning that "Electric vehicles are hitting a road block: Car dealers."

Former Chevy salesman Buzz Smith tells the Post that it can take longer to sell electric cars (with multiple visits and questions about their technology and chargers) — in effect reducing what a salesman earns per hour. But more to the point, "he believes the pay structure of auto salespeople isn't a good fit for the EV era." Electric cars have narrower profit margins, he said, which cuts into the commission a dealer can get. And if a customer returns to the dealership multiple times, salespeople may have to split the commission, again cutting into their take-home pay. At the same time, car dealerships make most of their overall profits from providing service for vehicles — not selling new cars. According to an analysis from the U.S. Bureau of Labor Statistics, just 16 percent of dealers' gross profits came from new car sales, while 43 percent came from parts, labor and service. (The rest of the profits come from used car sales and financing and incentives...)

That could also discourage dealers from selling EVs. Gas cars have 100 times more moving parts than electric vehicles do, and studies show that EVs have lower maintenance costs. An average gas-powered car, for example, needs an oil change about every six months, or every 5,000 to 7,500 miles. But many electric cars don't require a major service until around 150,000 miles.

"They're all terrified of that loss of maintenance," Smith said.

The Post reports one woman's complain that after buying an electric car, her salesperson "offered her a plan for oil changes and an extended warranty for a gas-powered car."

But is there something bigger going on? Since the 1950s dozens of states passed laws protecting auto dealerships, and many of those laws prevent manufacturers from selling directly to consumers. The Post notes that now "many automakers have to sell their vehicles through one of the country's more than 16,000 franchised auto dealerships. And those salespeople often don't have extensive training on how to sell an EV or even on the technology itself." Frustrated customers told The Washington Post that dealers tried to redirect their attention toward gas cars, or gave incorrect or unclear answers to questions about charging and day-to-day electric vehicle use... Then there is the maze of federal and state tax incentives that can help drivers afford a new or used EV — but only if the dealer and the consumer can understand how they work.

Some dealers, however, don't seem to want to offer electric cars: According to a survey that the Sierra Club conducted at the end of 2022, 66 percent of dealerships did not have an EV available for sale. That was at the height of EV supply chain problems, but 45 percent of those dealers — or 30 percent of all dealers surveyed — said they wouldn't offer an EV even if they could. Amid concern over an EV slowdown, electric cars are sitting longer on dealerships' lots than gas-powered cars. According to data from Cox Automotive, dealerships started the year with a roughly 50 days' supply of gas cars and electric cars. Now the supply of gas cars is around the same, but the supply of EVs has doubled.

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Are Car Dealers Slowing the Adoption of Electric Vehicles?

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  • Huh? (Score:4, Funny)

    by doubledown00 ( 2767069 ) on Saturday November 11, 2023 @06:59PM (#63998579)

    Dealerships are doing something shady?
    Nickcageyoudon'tsay.gif

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      Dealerships are doing something shady?
      Nickcageyoudon'tsay.gif

      Nah, people are waking up and are simply resisting more and more to main stream media propaganda :)

      They witness how the supposedly politically correct representants and leaders behave and simply realize it doesn't make sense so they resist more and more to what they say even in the rare occurrences where what they say could actually makes sense.

    • Re: Huh? (Score:5, Insightful)

      by Z00L00K ( 682162 ) on Saturday November 11, 2023 @09:15PM (#63998873) Homepage Journal

      The reason that they don't want electric cars is that those don't need the same amount of maintenance like oil changes etc.

      The business model today is to sell cars at basically no profit or even loss and profit on aftermarket services. That's why cars are requiring special tools for a lot of repairs - lock in the customer.

      An electric car could be basically maintenance free aside from wear items like brake pads and wiper blades and you can't charge premium for fixing that.

      • The reason that they don't want electric cars is that those don't need the same amount of maintenance like oil changes etc.

        As I recall an oil change costs about $30, how much profit can there be in that? I guess with enough volume there's a business model there but is that what is scaring off dealerships from selling EVs? Maybe it is more about not having people trained in maintaining an EV and the fear in having to pay for training and/or pay more per hour for people already trained in maintaining an EV.

        An electric car could be basically maintenance free aside from wear items like brake pads and wiper blades and you can't charge premium for fixing that.

        Bullshit. Ever been to a Jiffy Lube? Their entire business model is to get you in the door with an advertised $20 oil cha

        • by Ksevio ( 865461 )

          Dealerships love to draw you in with a cheap oil change and then tell you you need to spend $90 to replace the cabin filter or $300 to change the transmission fluid or whatever. Much more expensive prices than your local shop will charge

        • by Z00L00K ( 682162 )

          They replace belts, do the oil change and filters and a number of other kinds and charge you $300 to $600 each time for it.

          $30 won't even pay for the oil. You might get a liter of oil of a reasonable quality for $30.

      • Re: Huh? (Score:5, Informative)

        by ShanghaiBill ( 739463 ) on Saturday November 11, 2023 @11:38PM (#63999105)

        An electric car could be basically maintenance free aside from wear items like brake pads and wiper blades

        EVs use regenerative braking, so there is very little wear on the brake pads.

        The brake pads in an EV almost always last the life of the car.

        Tires wear out faster on EVs because of the quick acceleration. Tire wear may be lessened as we transition to self-driving cars, which can be programmed to accelerate more gently to extend the life of the tires.

      • by mspohr ( 589790 )

        Never had oil, filter, belts, etc maintenance on my Teslas. (150,000 miles 9 years)
        Brake pads don't wear out. I hardly ever even step on the brake pedal (except when parked in order to put it in "gear").
        Only maintenance is tires which last about 40,000 miles.

  • by Valgrus Thunderaxe ( 8769977 ) on Saturday November 11, 2023 @07:00PM (#63998583)
    That could also discourage dealers from selling EVs. Gas cars have 100 times more moving parts than electric vehicles do, and studies show that EVs have lower maintenance costs

    I don't think this equation is so simple. A Prius has a lot of moving parts, far more than a Tesla (EV) or a BMW 5-Series (ICE), yet they're still more reliable cars by all metrics, time and time again.
    • by doubledown00 ( 2767069 ) on Saturday November 11, 2023 @07:04PM (#63998591)

      A Prius has a small traditional gasoline engine in it. I don't think that's the kind of technology the dealers are objecting to. The example of absurdity in the article specifically mentions a salesman selling an EV buyer an oil change package.

      • by NomDeAlias ( 10449224 ) on Saturday November 11, 2023 @07:44PM (#63998681)
        This seems to be the heart of the issue. They can't upsell them on extended warranties and maintenance packages they won't need. They'll complain that they last too long and customers don't replace their vehicles often enough next. Salesmen needing to upgrade their knowledge to stay current is just part of their job and many other jobs.
        • More durable? Less shit to break? Longer lasting? Sounds awful!

          • More durable? Less shit to break? Longer lasting? Sounds awful!

            Of course the dealers will bring up all kinds of variations on "range anxiety" to make BEV ownership sound awful.

            Then comes the limited options in BEVs. If people want a car then there's plenty of BEV options but if they want a mini-van, light truck, some kind of "crossover" (whatever the hell those things are), or SUV then options can be limited. I read something about how there's supposed to be all kinds of new BEV models coming soon, which was apparently reversed later with announcements of major autom

          • At least there will still be money in the tires!
      • The example of absurdity in the article specifically mentions a salesman selling an EV buyer an oil change package.

        That's not an example of absurdity. That's an example of fucking stupidity. People that literally have no idea what the hell they're actually buying. The concept of a car running off electricity didn't unplug from the wall yesterday. Wise the hell up before dropping $50K. Fucking hell.

        This is also an example of corruption. Salesman should be fired for selling a blatant scam. Don't give a criminal the benefit of the doubt assuming they're just doing something "absurd".

    • For every reliable ICEV there's dozens of unreliable ones, and having the hybrid powertrain makes the ICE more reliable because it doesn't have to move the vehicle from a stop by itself.

      • Having the complexity of a gas engine and an EV with a complicated linkage between the two is more reliable..... Ok maybe in the first six years or so.
        • The linkage between the two isn't all that complicated. It's harder to get your head around it than to build it.

          When the Prius gets old it's neither the transmission nor the ICEV that needs replacement. It's the battery. It costs roughly $3500. If the car is in good enough shape that's not too hard to stomach, given the savings from MPG. Odds are the vehicle will only need 0 or 1 such replacements in its lifetime, and 0 engine or transmission rebuilds.

        • The equation is far from that simple. Simplicity does not make something reliable automatically. The EV causes reduced strain and wear on the components requiring the most maintenance and undergoing the most stress. Yes the end result makes them typically more reliable.

        • Some companies have done a decent job at simplifying this. Ford has the hybrid electric motor connected as a ring around the camshaft, which means that past the transmission, the drivetrain is identical to the non-hybrid counterparts.

          I would say diesel engines with all the DEF/DEF/EGR, high pressure fuel rails, fuel heaters, and other stuff are an order of magnitude more complex than even a hybrid drive train, but diesels have been getting more reliable, even with all that complexity.

          However, will these co

      • This is why I wish for more serial hybrids, like the RAMCharger, which hopefully will be out in 2025, or the BMW i-Series models with the extended range package. No linkages except for electrical and data between the IC engine functioning as a generator/alternator. The generator part can be removed or serviced without affecting the EV part of the vehicle.

        Something like this will pretty much stop all the griping about EV range anxiety. No gas needed for short daily commutes, if one has a charger and can p

        • by ShanghaiBill ( 739463 ) on Saturday November 11, 2023 @11:59PM (#63999127)

          Something like this will pretty much stop all the griping about EV range anxiety.

          Range anxiety is something people think will be a problem before they buy an EV, but realize isn't a problem when they own an EV.

          • Range anxiety is something people think will be a problem before they buy an EV, but realize isn't a problem when they own an EV. As long as you have your own charging solution and never have to rely on others.

            • by ShanghaiBill ( 739463 ) on Sunday November 12, 2023 @02:17AM (#63999269)

              As long as you have your own charging solution and never have to rely on others.

              If you have no access to an electrical outlet at home, work, school, or shopping, then you might wanna rethink your decision to buy an EV.

              An EV is a good choice for 95% of us, but not all.

              If you have no access to electricity and/or need to drive 500 miles three times per week with no toilet breaks, an EV is not for you.

    • by Roger W Moore ( 538166 ) on Saturday November 11, 2023 @08:29PM (#63998787) Journal

      I don't think this equation is so simple. A Prius has a lot of moving parts

      Yes, it is that simple. A Prius is not an EV, it is a hybrid meaning that it has both an ICE and electric motors so so is more complex than either a pure EV or a pure ICE.

      EVs just need an electric motor that is basically a wire coiled around an iron core placed in a permanent magnet without touching (so no metal on metal sliding like pistons in an ICE). It does not need pistons, spark plugs, a fuel pump, a starter motor, an engine block, a gearbox, an oil pump or even a transmission if it has one motor per wheel. It is vastly simpler than an ICE. In fact, an ICE contains all the basic parts of an EV since this is what the starter motor and pumps are. The only difference is that the battery and electric motors are much larger in an EV.

      That does not mean that you cannot make in unreliable EV but it is much, much easier to make an EV reliable than an ICE reliable because there is so much less to go wrong.

    • The very first Prius had a gas engine which was not very different from ones Toyota had been making for many, many years. They knew how to build them and had long since made them reliable. The Prius then, after the first generation, stabilized and was produced for years. All the issues which came up were addressed and polished/refactored to make subsequent builds more reliable. Toyota really knows how to make Priuses now.

      All the electric cars on the US market, with the exception of the Leaf and the Tesl

    • by dstwins ( 167742 )
      Yes, but a Prius is still a gas powered car which means ultimately dealerships look at the electric component as an add-on (ie: "it does everything any other car does in the same way, but you get this neat little EV motor for no extra charge!!!") to what they already know/sell rather than something "new" or "different".. So they skip over the electric portions. Also since they don't offer tax incentives/credits so for dealerships it changes nothing as far as they are concerned.

      EV's on the other hand are a
  • "An average gas-powered car, for example, needs an oil change about every six months, or every 5,000 to 7,500 miles. But many electric cars don't require a major service until around 150,000 miles."

    An oil change is not a major service. Even the spark plugs in my little commuter car lasted 90,000 miles which I admit surprised me.

    • Spark plugs now have expensive electrode coatings that increase their lifespan, which is potentially a win overall of course because it reduces service costs. Except what automakers do with that extended lifespan is go ahead and make it more expensive to change the spark plugs. For example it's a horrible PITA to change the #4 plug in a 11th gen F150 without dismounting the PCM. Or how on my Versa with MR18DE you can't get to the spark plugs (except for one of them, #4 again I think but I'm not sure) withou

      • Or how on my Versa with MR18DE you can't get to the spark plugs (except for one of them, #4 again I think but I'm not sure) without removing the intake manifold.

        That's nothing. The 2004 Outback H6 I owned required the engine to be partially dropped to change the plugs.

        • Since these days intake manifolds are made out of plastic and have a reusable seal it's not as big a problem as it once would have been. And it's not some Ford or something where the coil packs fail constantly, either... despite being totally wrapped in engine. I didn't get the CVT so I am super impressed with this thing, Nissan's still got it. It's no 240SX, which is the Nissan I had last, but it has less body roll than a stock one...

    • The tires will need to be rotated and balanced and you'll need the alignment done a few times as well. I've known a few people who would change their own oil, but almost no one has the ability to deal with the tires or n their own. Oil changes do add on to the TCO and are something an EV owner doesn't have to pay for, but the flip side of this is that there are so many options for getting an oil change the market competition keeps the costs low. Over the lifetime of the vehicle it'll probably add up to an e
      • It's not just the oil, though, is it?

        What about the brakes? EVs can probably go their life on the original brakes, but front brakes on ICE cars rarely last 30k miles.

        • by dryeo ( 100693 )

          Even being hardly used, brakes deteriorate. Friend just changed his, lots of meat but falling apart. My front rotors needed changing due to being pitted from corrosion, front rubber lines also needed changing due to rust on the clamps. The hydraulics also deteriorate whether used or not, the fluid absorbs water, which is corrosive. Little things like the caliper pins needing lubricated too.
          So basically, they'll still need some servicing, perhaps almost as much as my manual truck where I gear down instead of

          • None of those things should be happening on a 2-3 year old car. 2-3 years is the typical life of the front brakes on a modern car with average annual mileage.

            If you haven't replaced pads due to wear, then you are using your vehicle much less than the average. Your anecdote is not typical.

  • by TWX ( 665546 ) on Saturday November 11, 2023 @07:17PM (#63998629)

    I used to belong to a local car club for vintage Mopars. We met at a local Chrysler/Dodge/Jeep dealership once a month and the dealership would sponsor our annual car show with both space and with door prizes. The owner gave a talk once around ten years ago, he described dealership operations. The service department's revenue paid for the entirety of dealership costs outside of the sales staff's commissions. Everything from the lease for the property to the salaries of the janitorial staff came from the service department. The sales of new vehicles was profit.

    I could see there being real concerns among dealers if EVs simply do not require as much care. And lacking crankcase oil, hydraulic power steering, traditional automatic transmissions with fluid-driven torque converters, engine block coolant circulating among sand-cast water jackets around cylinders, fuel pumps, and other systems specific to combustion-powered vehicles, the maintenance revenues from dealers are very likely to fall. As such they may simply not want to sell electrics.

    It's difficult to make a go on just suspension components, tires, alignments, and brakes.

    • they shouldn't get a choice about what cars they sell if they've made it illegal to sell cars without a 'dealer'.

      don't want to sell them, fine. those laws shouldn't apply to ev's then and we can buy directly from manufacturers in every state regardless of if they have dealers for ICE cars.

    • by VampireByte ( 447578 ) on Saturday November 11, 2023 @08:35PM (#63998809) Homepage

      I used to work for a provider of software for dealerships, the turnover among dealership sales people is amazingly high. Most of the employee records were for former sales people who were there for just a few months. Dealerships seem like an unstable part of the economy that could be replaced with a website if it wasn't for archaic relics that require dealerships for no good reason.

  • Is it possible that even though the government is subsidizing these new toys people either don't want them or cant afford them?

    • Re: (Score:3, Insightful)

      by RUs1729 ( 10049396 )

      Is it possible that even though the government is subsidizing these new toys people either don't want them or cant afford them?

      It might be. But the evidence does not support it.

      EVs are only going to get better and cheaper. The writing is already in the wall for ICE cars.

      • Is it possible that even though the government is subsidizing these new toys people either don't want them or cant afford them?

        It might be. But the evidence does not support it.

        EVs are only going to get better and cheaper. The writing is already in the wall for ICE cars.

        I have no doubt that EV's will get better and cheaper. But they aren't there yet because they come in a limited number of vehicle types, they are inconvenient for people who can't charge at home, the batteries are very heavy, the insurance cost is higher, tires are very expensive, towing capacity sucks, range anxiety is real, performance in cold weather is a problem. I have no plans to replace any of my ICE cars with EV, and I would probably buy another ICE if I needed a vehicle tomorrow. No plans to eve

        • Re: (Score:3, Insightful)

          Complaining about heavy batteries is laughable when people are rolling around in $100k Grand Wagoneers that weigh 6000lbs. We get it, new things scare you.

    • At this point what company doesn’t sell an EV? They can’t all be wrong. Why are you concerned how other people choose to spend money?

  • by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Saturday November 11, 2023 @08:35PM (#63998807)

    Most of them earn through maintenance. Manufacturers even deliberately introduce flaws and planned malfunction to satisfy dealers so they push their cars over others. Sort of like MS making Windowsb deliberately shitty so they can push new versions of it every few years and the hardware people happily play along because they get to sell new hardware.

    EVs are an order of magnitude less complex, at least. Dealers are cut out of their business models, that's why they're stalling. Sounds plausible to me.

    • Worse - EVs can be more dangerous to work on. You don't always know where the current might be flowing, and you can't smell a live exposed wire like you would gasoline leak.

      It's extra training for techs, extra equipment, and probably extra insurance. All for vehicles that, as you say, require less maintenance.

      I've no doubt it's pissing off dealerships because of a hit to the recurring profits, but they're still doing OK off the initial sales.

  • by Tony Isaac ( 1301187 ) on Saturday November 11, 2023 @09:44PM (#63998929) Homepage

    That's the real question. Dealers ultimately will sell people what people want to buy. They might succeed in getting some people who come in for an EV, to switch to an ICE car. But I doubt this will happen very often. EV buyers are primarily motivated by the environmental impact of their choice, they aren't going to easily switch to ICE.

    • by hdyoung ( 5182939 ) on Saturday November 11, 2023 @10:26PM (#63998973)
      environmental impact won’t be the #1 thing for much longer. TCO of electric cars is gonna drop like a rock, and the battery range isn’t done rising. Nowadays it’s “I want to help the environment but I hate paying extra for a vehicle that isnt as convenient as an ICE”. In 10 years it’ll be “why would I buy an ICE that’s gonna cost me more, be less reliable, require more repairs, is slower, and has less range”.

      The dealers will adapt or get left in the dust selling legacy systems to people who are nostalgic for the vroom-vroom.
      • I look forward to that day. And as demand ramps up for EVs due to cost savings, dealers will *not* want to be left out of the action.

    • by tdailey ( 728882 )

      EV buyers are primarily motivated by the environmental impact of their choice

      That was a bottom-of-the-list benefit when I bought my first EV, honestly.

    • Environmental impact isn’t a big deal for me. But gas is $3.75 a gallon here and I can get hundreds of miles of capacity for $10 worth of electricity. That coupled with less maintenance, an EV makes much more sense.

      • This is beginning to become a motivator for some, though it is hampered by the still higher cost of an EV compared to an ICE car. It takes a while for the lower cost per mile, to offset the higher initial cost. As the price of EVs comes down, that equation will change, and I think this will bring with it a flood of new buyers.

    • Yes, they are sitting on dealer lots twice as long as ICE cars.
  • So the traditional car dealer model is going to go the way of the buggy whip some time in the future. I say good riddance. Never met a car salesperson I liked. About 15 years ago I visited a local car dealer to see what was on the lot. The salesman wouldn't even talk to me if I didn't first sit down with him and go "over my options". A fucked up way to say he wanted to run my credit first to see if I was even worth dealing worth. I told the asshole to fuck off and I've never bought a car from a dealer since

  • Yeah (Score:4, Funny)

    by PPH ( 736903 ) on Saturday November 11, 2023 @10:45PM (#63999017)

    Those damned Tesla dealers are always bait and switching me with an F150. I hate it when they do that.</sarcasm>

  • They have a good thing going, and they have for decades. Vehicles guzzle oil products, electric cars don't. Although they might if those cars are loaded with plastic. I see a bunch of oil barrens pissed because they are not making that money. They need to look in the mirror. that really is on them in some ways. It's on all of them. They have more money than God or the people.... They could have been part of the solution, or been the solution. Years back when they were introducing electric cars I had sai
  • by stikves ( 127823 ) on Saturday November 11, 2023 @11:47PM (#63999113) Homepage

    Of course they want to prevent moving to an All Electric future (or mostly electric). There is no benefit for them, as their current profit model will not be relevant anymore. They will either have to change and adopt to new customer needs, or like many other obsolete business before them they will try, and fail, to prevent that change.

    I can go into a very long and detailed rant on how EVs are better for the environment. But that is not the point today. They are simply, better cars.

    They have less maintenance burden, and hence much less need to come back to the dealership anymore. Except for maybe yearly checkups and tire rotation. And those yearly checkups are now done automatically over the air, hence that one is going away too.

    With all those frustration in the recent years ($10,000 "market adjustment" surprise fees, or "dealer adjustment" when they are more honest), there is of course a backlash. They did their own graves, and it just will take some short period to actually put that old model to rest.

  • The real point (Score:3, Interesting)

    by denelson83 ( 841254 ) on Sunday November 12, 2023 @03:07AM (#63999303)

    We really need to move away from cars altogether and back toward better public transit here in North America. More buses, more trains.

  • by Miles_O'Toole ( 5152533 ) on Sunday November 12, 2023 @11:49AM (#63999937)

    A friend of mine recently bought a very low mileage, year old "gently used" Toyota from a Nissan dealer. As soon as I heard it drive in an underground parking area, I realized you could hear a scraping noise as the wheels turned. Fortunately, we have a great mechanic. He found rust ridges on the front rotors, and said that a brake job was on the way in the not-too-distant future. He suggested we go back to the dealer and see what they'd do.

    So off we went. They found the problem, but said the car could easily pass a safety (because, of course, guess who writes the rules). So "as a goodwill gesture", they'd split the cost of replacing the rotors. At their dealership, of course. Cost: $860 Canadian for after market parts, even more for actual Toyota parts. Wasn't it lucky we'd just come from our mechanic! He said he'd do the job, when it needed doing, for $200-$250 with after market parts. So the dealer was generously offering to let my friend pay twice the cost of the job just because they're such great folks /s.

    And we noticed something as she dropped me off in the underground parking. The scraping noise was gone. So they had obviously ground off the worst of the corrosion, probably in case we decided to go all legal on them. They played some other games, too, like keeping us waiting for over two hours, then telling her if she hadn't driven the car every day during the three weeks she'd had it, the rust was her fault, then trying to question the safety of her snow tires (already checked and passed, and great tread depth). And that's just one story. There's another about their sister dealership, which we didn't know until just now had the same owners, trying to pull a scam on the resale value of her older Toyota a few years back. And many years before that, a Ford dealer sold my mother a car with hidden rust problems. When they became obvious, the manager laughed in her face and said, "So sue us".

    So yeah, big dealerships are scum, and some smaller ones too. We need another distribution model, and we need it yesterday.

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