From automakers announcing job cuts to fund electric vehicle research to Tesla's Cybertruck unveiling, electric vehicles have been a hot topic in automotive channels. Ten years ago an electric vehicle was not often spotted but as governments look to lower fuel emissions, automakers prepare to "phase out cars powered solely by internal combustion engines" (Driving into 2025). This electric vehicle shift will impact all areas of the auto industry; in fact a study from the Fraunhofer Institute for Industrial Engineering found that this shift could result in the loss of 75,000 jobs in Germany.
Like the advent of the first combustion engine the electric car boom will be bringing many changes to all areas of the car industry. In dealerships this shift from internal combustion engine to electric will greatly impact the Service Department. To anyone working in the auto industry, this is not really new information but electric vehicles require less mechanical parts to be serviced. Needless to say, your dealership and service department should start preparing for this change. Automotive News tackled this subject in a 2017 article Electric Vehicles and the future of Fixed Ops. In it they compared the service cost of an electric car to that or an internal combustion engine, the cost to service the electric car is significantly less.
Due to this shift dealerships need to explore new ways in which to retain customers. Some changes that your dealership could consider are:
1. EV designated parking
2. Charging stations for your customers (not all states have the necessary infrastructure to charge ev's)
Now more than ever, your dealerships focus should be on the customer and providing them with the best possible experience so that no matter the car, they will consider your dealership for all their future automotive needs.
David Lewis & Associates for all your training needs.
We offer automotive training in Sales, Fixed Ops, F&I and Internet BDC.
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