Comment by nilsbunger
1 month ago
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.
1 month ago
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.
> There's still brakes, suspensions, tires, etc. to sell to EV buyers.
The brakes last a lot longer because of regen, everything else applies but is pretty marginal, although I had to pay BMW $500 to replace a tire on my i4 because of a nail. I could have shopped around for that I guess.
12 replies →
What percent of people go to the car dealer for tires?
2 replies →
but nothing compared to the oil changes, filter changes, as well as an ICE having multiple moving parts, so more chances for something to break.
That looks alien to me. Here, in europe, the usual thing it's go to your car workshop of trust. And they know where and how pick the parts and service your vehicle. Some car workshops could be "oficial" for a car maker, and it's where you should go when your car is new and under warranty period.
The dynamics in the US are different for a reason: Car dealerships are independently owned due to laws preventing car manufacturers from directly selling cars to consumers.
This means multiple dealers (of the same car brand) compete with each other to sell you a car, thus driving their margin down. They try to make it back by selling you add-on packages and financing at the time of sale, ongoing service relationships, and handling warranty/recall issues (paid by the corporate brand).
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.