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Carmakers face a crossroads as they work to fit auto dealers into their EV plans - CNBC

Carmakers face a crossroads as they work to fit auto dealers into their EV plans - CNBC

Carmakers face a crossroads as they work to fit auto dealers into their EV plans - CNBC
Jan 28, 2023 1 min, 8 secs

Others like Ford Motor are offering dealers different "EV-certification" levels, while most other carmakers, or OEMs, know they need to change the sales process to fit the evolving industry, but are still trying to figure out how to do it.

For dealers — from mom-and-pop shops to large publicly traded chains — EVs will mean new employee training, infrastructure and substantial investments in their stores to be able to service, sell and charge the vehicles.

"The tone and tenor of this subject matter has evolved, and I think it's very, very clear this year that our legacy OEMs absolutely realize that we are essential going forward," said Alford, who runs Chevrolet and Cadillac dealerships in North Carolina.

A greater shift online may limit the role of dealers to strictly processing, maintenance and as delivery centers going forward and eliminate the need for large lots of cars that they then sell to consumers.

"By and large, the franchise system remains in place even for EVs by traditional automakers, although they all seem to be looking at ways to tweak it to be more competitive, so they say, with the Teslas of the world," said Michelle Krebs, Cox Automotive executive analyst.

Toyota Motor, for its part, has no plans to overhaul its franchised dealership network as it invests in electrified vehicles, CEO Akio Toyoda told dealers to resounding applause in September.

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