June 22, 2021

Gp Delivers

The excellent automotive artisans

Dealers concerned EVs will shrink profits

“There isn’t really any out-of-pocket [cost]; that’s money that’s already in the fund,” Shaun Bugbee, BMW of North America executive vice president of operations, said last week. “The fund is to benefit all dealers. All dealers will be participating in electric mobility.”

Porsche’s 192 U.S. dealers are investing a combined $77 million in building out a retailer-based network of fast chargers to support the automaker’s EVs.

Cadillac and GMC have opened reservations for customers to secure a Lyriq, Hummer pickup or Hummer SUV with a $100 deposit. Customers who make reservations will connect with dealerships to finalize the sale when the vehicles are ready for delivery.

For the Hummer Edition 1, priced at nearly $113,000, Gasman thinks a more substantial deposit of $1,000 to $5,000 would be a better benchmark of demand. “Something where there’s just some skin in the game,” he said.

Many Chevy dealers outside of California have struggled to sell the Bolt EV since it came out in 2016. An electric pickup would be an easier sell in dealer John Hiester’s North Carolina market, he said.

“I’d put 30 of them online out here tomorrow and not even think twice about it because there is a demand for it,” said Hiester, dealer principal at Hiester Automotive Group.

Hiester is also confident that the Hummer will remain in high demand because of its unique place in the market.

Automakers’ EV goals, such as GM’s 2035 target to be all-electric, can be jarring, he said. But he’s confident dealers will adjust.

“As an industry, we’ve faced a lot of disruptions. When rental cars came out, everybody said they wouldn’t have car dealers anymore because why would people own cars if they could rent?” Hiester said. “The business grew. It didn’t shrink. I really think it’s going to grow and not shrink with EVs as well.”

Michael Martinez contributed to this report.