Comment by ortusdux
5 hours ago
I think the dealership monopoly is partly to blame. Dealers get more reoccurring revenue from ICE vehicles, so they are incentivized to not stock EVs and to steer customers away from them. Ford seemed to understand this and attempted a direct sale program for EVs, but they canceled it due to dealer pushback.
https://fordauthority.com/2025/02/ford-ev-inventory-hub-syst...
Yes I think there's a real innovators' dilemma here for traditional automakers with dealer networks. Dealers make most of their money on servicing vehicles, not selling them. And EVs require almost no servicing.
I bought a used Audi etron a couple months ago. Agent was going to try to sell me a service plan and realized none of them apply to electric :) The downstream fanout of the auto industry is huge…
There's still brakes, suspensions, tires, etc. to sell to EV buyers. Especially when EVs are so heavy that they have more wear on many of these.
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Ford did try to make it up to them by offering a bevy of aftermarket add-ons for the Lightning that were sold through the dealerships. As a consumer, I wanted them to keep the EV and ICE versions as similar as possible, with the hope that parts would be cheaper and easier to find.
Also dealers are one of the most reliable GOP funding sources. The GOP does not like EVs.
They seem to be flooded on dealership lots and are not selling whatsoever. OEMs force dealers to take the crap vehicles if they are to get the good ones. You have a vehicle that started off as a hard sell to the crowd that normally buys the vehicle and then you make it so the price is astronomical...forget the dealer reluctance, what did you think was going to happen?
[1]:https://youtu.be/F0SIL-ujtfA?t=532
Yeah I mean the obvious problem is that consumers specifically want to buy new ICE cars.
They will buy both ICE and EVs at the right price. I don't think Ford sells anything at the right price currently. But the Lightning was a mistake at that price.
> Ford seemed to understand this and attempted a direct sale program for EVs, but they canceled it due to dealer pushback.
Why didn't they just do it anyways? Dealerships seem like a pointless middleman, but I know absolutely nothing about what leverage they have. Self-driving cars can not come fast enough
Because dealerships are the automakers' real customers, at least right now.
You don't buy a vehicle from Ford; your local Ford dealership buys a large number of vehicles from Ford, and then you buy one of those.
Yes, an argument could be made that eliminating the dealership keeps the same customer base while eliminating the middleman (see also: Carvana), but now you have a lot more cost and logistics (shipping individual cars to individuals' homes, for example, rather than shipping truckloads to a single well-known spot) and unless you're willing to do the Carvana/CarMax thing of offering a 7-day return window (which adds even more cost and logistics and risk), the average American customer won't feel as comfortable buying a vehicle sight-unseen from across the country as they would if they could sit in the thing while a salesperson pitches it to them.
That means you're taking on whole new category of cost and risk, while assuming that you won't lose any of your incoming revenue.
That's kinda a big assumption, and the major established/legacy/whatever-you-call-them automakers aren't known for having a high risk appetite.
Extensive regulatory capture -
https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes
I have a conspiracy theory take on traditional manufacturers being so anti-EV.
Basically the primary differentiator between car companies and the primary barrier to entry in the combustion vehicle business is the engine, especially in the US. Look at the marketing, horsepower and torque are always the topline numbers. Zero to sixty and quarter mile drag races are the favored metrics. Each company spent decades perfecting the engines and the majority of the engineering effort goes into them. Even the transmissions get second fiddle status.
But now EVs come along and the electric motors are commodity parts that are already well optimized. There's little one company can do to make the motor significantly better. Battery tech is cutthroat and also largely outside of the car company's scope, although Tesla does more than other car companies with their megafactories and experiments with oversized cells. If EVs become popular there's little to stop competition from sprouting up everywhere and killing profitability for the legacy auto manufacturers.