Dealers thrive in 2021: Do state ownership laws prevent EV adoption?

 – EV Updates 2022

Dealers thrive in 2021: Do state ownership laws prevent EV adoption? – EV Updates 2022

Dealers thrive in 2021: Do state ownership laws prevent EV adoption?

– EV Updates 2022

Another year has passed without a solution to the battle between strong dealerships in 2021 due to weak supply and strong demand – the direct-selling model pioneered by Tesla, now taken by Rivian and Lucid.

This is a well-known sequel to anyone who has followed the EV improvements of the last decade, but it will continue for a long time to come, which will prevent EV sales, the latest argues Bloomberg Feedback piece.

Most states have ownership laws that require automakers to rely on independent dealerships. This was not largely challenged until Tesla began selling cars, choosing to do so through its own stores and website.

Lincoln Boutiques and Dealerships

Lincoln Boutiques and Dealerships

This led to backlash from dealership committees and sympathetic legislators. In 2014, Michigan changed its law to close loopholes that would allow cars to be sold in the state of Tesla, home to three Detroit automakers. Tesla and the state government compromised in a settlement in 2020, allowing the automaker to service its cars, but have not yet actually sold them. That, too, was challenged in a proposed law passed by the Michigan House, but not taken up by the Senate.

When Tesla introduced its direct sales plan, it argued that it was necessary to give EVs a fair view of the market. This concept echoes the argument that the primary purpose of proprietary dealerships is to move cars quickly from the parking lot and then make extra profit by servicing them.

However, EVs require a high level of customer education on issues such as range, charging and cycling, the author noted. For that the seller has to spend more time on EV sales. Low maintenance requirements also limit potential revenue from service.

Lucid Studio - Newark, CA

Lucid Studio – Newark, CA

These conflicting priorities may already have had an impact on EV sales. The piece notes that Florida has higher EV sales than New York, despite the lack of state subsidies, noting that it is not due to contact. However, New York restricts direct sales, not Florida.

The profitability of dealerships from each transaction will stimulate customers’ interest in new EVs. As dealerships try to take advantage of limited supply, massive markups will be issued in 2021 for many of the most anticipated new models (electric and others). Told Ford dealerships If they use strong hand tricks it will not send them F-150 lightning pickups.

Although established automakers like Ford are basically stuck with their own dealerships, start-ups are leaning towards direct sales. Lucid follows the Tesla model closely, but with a more boutique approach, while at the same time avoiding dealerships that have the right to sell Rivian.

Both Rivian and Lucid were careful from the beginning to avoid claiming that their stores or galleries were selling vehicles. They are sold through the website.

These direct-selling automakers have no problem delivering cars to customers, even in Michigan and other states. Tesla delivered more than 300,000 vehicles worldwide in the fourth quarter of 2021 alone, with many estimates still not agreeing on the exact number.

Meanwhile the approach to polystyrene is a hybrid – and it could be one that is closer to how vehicles will be sold more in the future. The Volvo Spinoff brand has its own exclusive Polestar Spaces and online sales, but the service is mostly handled by traditional Volvo dealerships.

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Dealers thrive in 2021: Do state ownership laws prevent EV adoption?

– EV Updates 2022

#Dealers #thrive #state #ownership #laws #prevent #adoption

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