Direct sales of EVs

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Burt

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Why can’t major automakers set up a new EV only division (sort of like GM did with Saturn) and sell direct to customers like Tesla does?

Yes traditional dealers would be upset, but they are an albatross around the neck of manufacturers. An archaic business model. Didn’t Chevy dealers resent Saturn but they had no choice?

If GM’sobligations to Saturn, Pontiac franchisees were extinguished, they could bring back those brands as EV only. Same for ford/mercury and Plymouth.
 
The owners of dealerships would not be happy campers, they want a slice of that pie, especially if they already put in charging stations.
 
Burt said:
Why can’t major automakers set up a new EV only division (sort of like GM did with Saturn) and sell direct to customers like Tesla does?

Yes traditional dealers would be upset, but they are an albatross around the neck of manufacturers. An archaic business model. Didn’t Chevy dealers resent Saturn but they had no choice?

If GM’sobligations to Saturn, Pontiac franchisees were extinguished, they could bring back those brands as EV only. Same for ford/mercury and Plymouth.
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Actually at one point Saturn bailed GM'S rear out as they from what I've heard sold many parts to GM. Didn't Delco or one of GM'S large suppliers go on strike leaving them hosed.
 
The most important question: Do they want to directly sell the EVs, complying with all of the various rules, regulations, taxes and contract terms that vary by state along with the issue of logistics to deliver said vehicles to the owners and arranging for vehicle prep to be properly completed as well as any in transit damages.

Lastly, can they do it cheaper and as well as the dealers can who have the necessary experience to handle all of that stuff.
 
SeaJay said:
The most important question: Do they want to directly sell the EVs, complying with all of the various rules, regulations, taxes and contract terms that vary by state along with the issue of logistics to deliver said vehicles to the owners and arranging for vehicle prep to be properly completed as well as any in transit damages.

Lastly, can they do it cheaper and as well as the dealers can who have the necessary experience to handle all of that stuff.
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It's not all that difficult. Tesla does it. The big difference is the existence of the skim from the middleman.
 
There is nothing technical about this. It is a pure financial and marketing decision. You can always sell a gasoline car directly without dealership, or sell EV with a dealership.

Tesla did it because it was a boutique brand and could get away without it in small volume. In large volume they will run into some problems with the dealership special interests, and eventually Tesla need marketing beyond just Elon Musk, so they need to figure out the sales and financing side of the business. Maybe they don't need to and eventually the big auto companies will do that by being holding companies of some new startups and shut down their legacy auto businesses.
 
They would have to develop a warranty, repair and maintenance model as well.

Tesla was considered a disrupter of the old auto sales and service model and the customers knew that, so they got a bit of a break. With their initial relatively small volumes, low maintenance requirements and traveling repair guys they were able to hold it together for long enough. And they've built a large sales and service facility nearby now.

I suspect GM, Ford and Chrysler customers wouldn't be very happy with the road ranger model.
 
It is way bigger than EVs...
The dealership distribution model is on its way out; it adds little if any value and is pure cost.
The Internet will continue to disrupt the world, kill off existing products and services while creating new ones.

Nothing and no one is exempt from the product life cycle.
 
SeaJay said:
The most important question: Do they want to directly sell the EVs, complying with all of the various rules, regulations, taxes and contract terms that vary by state along with the issue of logistics to deliver said vehicles to the owners and arranging for vehicle prep to be properly completed as well as any in transit damages.

Lastly, can they do it cheaper and as well as the dealers can who have the necessary experience to handle all of that stuff.
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Saying it another way. For the past 100 plus years auto makers were designers and manufacturers with some marketing on the side. They don’t have the skill sets or culture to operate recharging networks, sales organization or conduct maintenance.

And then just image the UAW trying to extend their tentacles into these business lines.

How Tesla can pull it off is simply amazing. To be good at design, manufacturing, sales (including trade ins) , recharging networks, maintenance is really hard to do.
 
I dont think Tesla pulled off anything. They only sell a fraction of vehicles in the USA and the big three make more money than Tesla. I suspect in 3 years time being a mail order EV car company will cost them.
Time will tell, those are my thoughts.
 
Tesla simply piggy backed on the Internet.
The dealership model is not that far behind as it is easier than ever to comparison shop online, for just about everything.

Ford broke out its EV business unit; online sales cannot be that far behind. Maybe they are doing some of that now?
 
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