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How Auto Dealers Will Handle the Electric Car Boom


Electric vehicles will generate far less service revenue than gas cars over their life expectancy.
Tesla and other sellers of electric-only cars are bypassing dealers, selling directly to customers.
Advanced safety technology in EVs is reducing crashes and the revenue from repairs.
The transition to electric and advanced technology vehicles is poised to upend the auto dealer landscape, erode profit margins, and spark a massive industry consolidation.
The impact on the current auto dealer business model will be quite profound, Adam Jonas, the auto and shared mobility analyst at Morgan Stanley Research, wrote in a March 10 investor report. 
There are about 16,600 new vehicle dealers in the US. Combined, they do about $1 trillion (CQ) in annual sales and have 1.1 million employees, according to the National Automobile Dealers Association.  ....

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Service Makes the Difference in Age of BEVs, Online Sales


Apr 13, 2021
“For everybody in the retail world, service is a great opportunity,” AutoNation’s Marc Cannon (left) tells Reuters’ Joe White.
Service Makes the Difference in Age of BEVs, Online Sales
“We’re not like some of these companies that are just going to sell you a used car,” says AutoNation’s Marc Cannon. “That’s a key part of this business. You have to service the vehicles.”
Dealerships have physical locations that offer service and parts, and that’s a key advantage over electric-vehicle startups and online-only used-car sellers with no local presence,
some speakers at the recent online Reuters Automotive Retail 2021 conference say. ....

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