November 11, 2023  SEONews

Are Car Dealers Slowing the Adoption of Electric Vehicles? – Slashdot

“Dealers don’t want to change the model. They want to be the gatekeepers.” That’s according to Daniel Crane, a law professor at the University of Michigan who studies the laws and economics of car dealerships. He’s quoted in a Washington Post article warning that “Electric vehicles are hitting a road block: Car dealers.”

Former Chevy salesman Buzz Smith tells the Post that it can take longer to sell electric cars (with multiple visits and questions about their technology and chargers) — in effect reducing what a salesman earns per hour. But more to the point, “he believes the pay structure of auto salespeople isn’t a good fit for the EV era.” Electric cars have narrower profit margins, he said, which cuts into the commission a dealer can get. And if a customer returns to the dealership multiple times, salespeople may have to split the commission, again cutting into their take-home pay. At the same time, car dealerships make most of their overall profits from providing service for…

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