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consumers. First, there’s price. When a manufacturer sells
direct to consumers, they control the price, since there’s no
competitive dealer network in the mix. Typically, that means
that prices are high for the goods in question, and as long as
there’s demand for them, the prices are unlikely to come down.
Second, there’s limited supply, as the direct sales model focuses
more on a build-to-order approach. This leads to long wait times
for delivery. Third, and most importantly, there’s reduced access
to customer service. Without a nationwide network of dealers
available for customers to access for routine maintenance and
unscheduled service, direct sellers are limited in the capabilities
they can offer consumers. This leads to service wait times that
can stretch out for weeks or longer on a consistent basis. Does
that seem practical in a society that relies so heavily on personal
transportation?

The franchise model, however, offers many advantages that
benefit consumers. When it comes to price, there’s ample
competition in the marketplace, both inter and intra-brand. And
as the available EV options increase among OEMs, the pricing
will continue to trend in a more affordable direction. Additionally,
franchised dealers will have access to more inventory, since the
OEMs have built their manufacturing capabilities to support
such a large dealer network. This means customers can visit a
local dealer, test drive an EV they’re considering, and purchase
on the spot. And when it comes to servicing those vehicles,
franchised dealers have the teams and the tools to make it
happen, all over the country.

To put the service equation in context, consider these three
brands that are no longer in production: Oldsmobile, Pontiac,
and Saturn. All GM brands. Even though those vehicles went out
of production years ago, you still see them on the roads today.
And the reason you see them on the roads today is because
there’s a franchised dealer network that has the owners’ backs.

Underneath the exterior of a Saturn, for example, you’ll find
parts that are common to a wide range of GM vehicles. Those
up with gas takes just a couple of minutes and availability is parts are still produced by GM, so they’re still available. And in
virtually unlimited. the service departments of GM dealers across the country there
are scores of technicians on-hand, ready to service those cars
But those hurdles are falling, and EV sales are climbing. when they roll into the shop.

So, what presents the biggest challenge in converting ICE Can a boutique, direct-sales EV manufacturer, with limited
(internal combustion engine) vehicle owners to EV? The answer: facilities (not in every state), provide the same level of support
the sales and service model used to do it. for consumers? No, they can’t. That’s a big problem for the
average motorist.
There’s two approaches to bringing EVs to market. One is the
direct sales model, which is how Tesla sells its vehicles. The Whether it’s in a major metropolitan area or a sleepy little town
other is the franchise system, which OEMs like Ford, GM, Toyota, in the middle of nowhere, the franchised dealer network is best
etc. have used for decades. And there’s a simple reason those suited for providing future EV consumers with the sales and
OEMs employ a franchise dealer system: it works. It works for service options that they’re not only looking for, they’re able to
the OEMs, it works for the dealers, and, most importantly, it provide them with the ones they need. They’ve stood by their
works for the consumers. customers since the advent of the internal combustion engine,
and they’ll stand by them as the EV revolution continues.
A direct sales model presents some big problems for
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