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Legacy Manufactures Are Missing The Boat

Hblick48

Member
May 13, 2020
131
93
Folsom, CA
I recently had to take my Ford F250 (that tows my 12,000 pound fifth wheel) to a Ford dealer due to a major transmission fluid leak. It was only 45 miles from home, but I didn't want to take a chance on ruining the transmission. To make a long story short, we rented a car to get home. Next day we had to return the rental, so I followed my wife back in my Model S. Went to the Ford dealer, and service advisor pointed to the Mustang Electric SUV in the front of the lot. I thought to myself, why would you own an electric car (other than a Tesla) because your charging options are limited.

Where they're missing the boat is they should make all of their dealers install charging stations in the front of their dealership, accessible 24/7. They would instantly have thousands of charging stations. Since a Ford dealership is a franchise, Ford could require their dealers to do this upgrade. What a great way to sell more cars.

Tesla has had it right all this time. You'd think the Legacy brands could figure this out by themselves!
 
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AlexHung

Member
Mar 13, 2021
323
311
Santa Cruz, CA
Perhaps, but I don't want to spend time at a car dealership waiting for my car to be charged. Unless it's just a 5 min top up. For longer charge (15+ minutes) I'd rather spend the time doing some grocery shopping or grab a coffee. How many car dealerships are situated this way? :)
 

WarEagleGo

Member
Jun 2, 2021
43
74
Huntsville, Alabama
The relationship between OEMs (Ford, General Motors, etc) and their dealerships is more complex than most any of us realize: spanning franchise agreements (legal documents); state laws (which often favor the local dealerships); all levels of training (more than just mechanics); and complex histories dating back more than 50 years in many cases.

Here is a quick search of recent news/industry articles which explain the carrot-and-stick approach OEMs are using with their dealers.
- In general, local dealers cannot be "forced" to do something, but to be able to sell and service the latest technology (not just EVs), they often have to re-train and re-equip their facility often for 10s or 100s of thousands of dollars.




 
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Rocky_H

Well-Known Member
Feb 19, 2015
6,807
8,422
Boise, ID
Since a Ford dealership is a franchise, Ford could require their dealers to do this upgrade.
No they could not.

While your idea is cool, this is not something the manufacturers can usually force the dealerships to do. The nature of the protectionist dealership laws in almost every state is that the dealerships are independent 3rd parties, and they are protected from being forced to do things by the manufacturers, and are also protected from the manufacturers being allowed to compete with them by selling directly to the public.
 

mociaf9

Active Member
Oct 18, 2018
2,885
5,966
CA
No they could not.

While your idea is cool, this is not something the manufacturers can usually force the dealerships to do. The nature of the protectionist dealership laws in almost every state is that the dealerships are independent 3rd parties, and they are protected from being forced to do things by the manufacturers, and are also protected from the manufacturers being allowed to compete with them by selling directly to the public.
The manufacturers do actually have the power to enforce some changes on the dealerships. This mechanism allows the manufacturer to set what they see as the reasonable requirements to properly service and sell their vehicles. Requiring them to install EV charging infrastructure is of the type of action that absolutely can be required and in fact was recently done by GM with Cadillac dealerships, see Cadillac dealers must invest $200K each for brand's EV future.

The caveat being that GM had to buy out those dealerships that weren't interested in making the required changes.
 

WarEagleGo

Member
Jun 2, 2021
43
74
Huntsville, Alabama
The manufacturers do actually have the power to enforce some changes on the dealerships. This mechanism allows the manufacturer to set what they see as the reasonable requirements to properly service and sell their vehicles. Requiring them to install EV charging infrastructure is of the type of action that absolutely can be required and in fact was recently done by GM with Cadillac dealerships, see Cadillac dealers must invest $200K each for brand's EV future.

The caveat being that GM had to buy out those dealerships that weren't interested in making the required changes.
Concur, the carrot-and-stick approach is what I called it. Here is the complete paragraph on Cadillac from the linked article.

Cadillac, which aims to go all-electric by the end of the decade, is a different story. It had only one plug-in model in recent history—the ELR plug-in hybrid—that was most definitely not a sales success. Last year, GM asked that its Cadillac dealerships [URL='https://www.greencarreports.com/news/1130404_report-dealers-not-sold-on-gm-s-all-electric-vision-for-cadillac-can-sell-out']invest about $200,000 on upgrades per facility[/URL] on charging stations, training, and EV-related equipment. As an alternative, it offered up to $500,000 to drop their franchises altogether. A shocking 150—or about 1 in 6—of the luxury brand’s dealers are opting to cash out and close rather than embrace EVs.[B] [/B] Cadillac noted to [I]Green Car Reports[/I] that ultimately the decision is up to each individual dealer. “This is an exciting time for Cadillac and we believe most of our dealers share that excitement and will want to be a part of the future," Cadillac spokesperson Katie Minter explained. "For dealers who choose not to join us on the EV journey, we will make a genuine effort to offer fair and equitable assistance should they wish to exit the Cadillac business.” For dealerships who remain with the brand, Cadillac is taking a more customized approach. It’s working with the electrification solutions firm ABM to do consultations at every location, resulting in the development of “tailored, site-specific EV-readiness solutions for each dealer.”

 
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