Earlier quoted context omitted.
> The incumbent auto makers understand fully that the ICE version of whatever model they electrify will suffer enormously. So you're saying they make _less_ profit on the EVs? That seems dubious. > They believe that they can somehow retain all of the sales of the existing ICE model while adding growth sales of a different electric model. Well.. precisely. Isn't the solution to make the EVs more profitable than the IC…
Dealers certainly make less profit on EVs. The Dealer model was built around regular, required maintenance schedules as profit centers. EVs have far fewer moving parts and fluids with regular maintenance schedules. Dealers are incentivized to sell more ICE than EVs for the good of their own profits. Ford and GM unfortunately can't cannibalize their relationship with dealers under current American regulations and so w…
Is there any data out there on what percentage of new car buyers take their vehicle to the dealer for maintenance? I've found myself in a position where I can't do my own maintenance for the first time in many years, and after waiting 3 hours for an oil change 3 different time at 3 different dealers I doubt I'll ever hand my keys to a dealer service department ever again for any non-warranty work. And this is on top of their extortionate pricing.