Electric vehicles are the future of the American car industry – if dealers can figure out how to sell them

“The consumer in Central America is just not there yet,” he said, referring to the long distances many of his customers drive daily and a lack of charging infrastructure outside major cities.

As car drivers and investors buzz about the coming era of the electric car, many dealers say they are less than 2% enthusiastic about the reality of the new car dealerships, which last year powered fewer batteries. US car sales.

Most consumers who come to showrooms do not buy electric cars, and with gasoline prices relatively low, even hybrid models can be difficult, say dealers and industry analysts.

Car manufacturers are moving aggressively to expand their range of electric vehicles with dozens of new models emerging in the coming years. Some like GM set fixed targets when they plan to phase out gas-powered cars completely.

Many retailers say this puts them in a fine spot: they try to adapt, but are not sure if and how quickly customers will make the switch. About 180 GM dealers, or about 20%, have decided to give up their Cadillac franchises rather than invest in expensive upgrades that GM needs to sell electric cars.

A GM spokesman said the company expects some Cadillac dealers to sign off and is pleased that the approximately 700 remaining share its all-electric goals.

Motor companies’ previous attempts to expand sales of electric cars have largely declined, saddling retailers with unsold inventory. Some retailers even now say they are reluctant to mass-market electric models.

“The biggest challenge is that retailers have a bit of ‘boy who wolf wolf’ syndrome,” said Chris Lemley, a retailer in Massachusetts.

Car companies have been promising to make electric cars mainstream for years, but have only produced low-volume niche models, he said. He recalls Ford Motor Co.

building an all-electric Focus that sold poorly and piled on its fate. It was discontinued in 2018.

“So when we’re told ‘we really mean it’, it’s easy to be skeptical, ” he said. Lemley added.

Some buyers are also not sure. Joe Daniel, an energy analyst at the Union of Concerned Scientists, said he was determined to buy an electric car, but eventually gave up trying after realizing there were not enough public charging stations near his Washington apartment. , DC was, without a place to plug in. in, the purchase made little sense, he added.

“To make cars take off, they have to be just as comfortable as gas – powered cars – that’s the point of this big purchase,” he said. Daniel said.

To solve problems like this, President Biden has said he wants to spend billions of dollars on upgrading the country’s charging infrastructure as part of an effort to boost batteries with batteries.

Ford, GM and other major automotive companies say they are confident in their new range of electric vehicles and are training their dealers to sell and maintain them.

Yet some car dealers say they are concerned about the long-term implications for their business.

Tesla Inc.’s

influence on the electric car market has created a new standard for car businesses, offering an online transaction and a simplified range without price negotiations. Other electric vehicle start-ups, such as Rivian Automotive and Lucid Motors, say they will also sell directly to consumers and bypass traditional dealers.

Some auto companies are now following their lead, and they initially sell a lot with a few electric models and allow customers to order more directly from the manufacturer.

Håkan Samuelsson, CEO of Volvo Cars, recently said that all future battery-powered electric vehicles will be sold exclusively online and that the price will be set centrally, eliminating the possibility of negotiation. Dealers will help deliver vehicles to customers and perform other services such as maintenance, he said.

‘The market is moving from the physical trader to online. This is what will happen in the next ten years, “said Mr. Samuelsson said.

Howard Drake, a GM retailer in Los Angeles, said he is considering converting two of his showrooms. Instead of separating the models according to brands, he is considering two stores: one for electricity, the other for gas-powered vehicles.

“These are really different customers,” he said. Drake said. “A Hummer EV buyer probably doesn’t want to sit next to some guy who buys a pickup truck with gas.”

Mr. Sowers said he sees encouraging signs. GM recently lowered the sticker price of the all-electric Bolt and in February helped boost sales of the model. But he said his stock of electric vehicles would remain light because he was unsure about the long-term demand.

“It’s still very early days,” he said. Sowers said.

Once dealers figure out how to sell EVs, another business problem awaits in the service bay.

Electric vehicles usually have fewer mechanical parts and do not require the same service as cars with gas engines require, such as oil changes. The job is currently a major profit center for traders.

“It’s going to have an impact, but it could take three or four years to see the full effect,” he said. Lemley said. “That’s really my biggest question mark at this point.”

—William Boston contributed to this article.

Write to Nora Naughton by [email protected]