Ever felt sorry for a car dealer? Well, they want you to — and it’s all because of EVs.
A couple of weeks ago, we wrote about electric vehicle ineptness by auto salespeople, including reports that many reps had a “cringeworthy” lack of knowledge about the products. “I felt like I knew more than they did,” James Richards, the CEO of a water heating company in Davis, Calif., told The Washington Post after days of test-driving EVs at Volkswagen (VWAGY), General Motors GM 0.00%↑ and Ford F 0.00%↑ dealerships.
Now we have a big clue as to why: They don’t actually like selling them very much.
Yes, nearly 4,000 auto dealers have written an open letter to President Joe Biden calling on him to “tap the brakes” on his administration’s efforts to curb emissions by promoting non-polluting transportation.
They even launched a website, the weaselly named “EV Voice of the Customer,” claiming that “enthusiasm has stalled” for EVs. In addition, they say, many of them have unsold electric vehicles they insist are evidence that the White House’s goal of having 50% of all new vehicle sales be electric by 2030 is unrealistic and untenable.
“These vehicles are ideal for many people, and we believe their appeal will grow over time,” the dealers wrote in their letter to Biden on Tuesday. “The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [battery electric vehicles] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.”
True, the growth in EV sales has slowed in recent months, but it is not helped by dealers insisting on maintaining the high profit margins that came after the Covid pandemic, when many prices went above the MSRP (manufacturer’s suggested retail price) found on window stickers. Or the lack of sales enthusiasm noted above. Another aspect is that U.S. car companies are having a hard time cracking Tesla’s TSLA 0.00%↑ 60% or so domination of the marketplace, especially since Elon Musk’s company cut prices on several of its models.
Tesla also sells straight to consumers, thus cutting out the middle man — the auto dealer.
Cue the tears.
