Thursday, September 23, 2021

Can auto dealers compete with direct-to-consumer EV sales?

To the Editor:

It’s been a common theme for a while now that small dealerships won’t be able to survive as the big dealer groups keep growing, but I’m not sure I agree. Robert Loehr has the right idea to stay competitive in a challenging market, in my opinion. When the going got tough with COVID, he made the tough decision to pare down on the budget and focus where the customers are coming from: online. It doesn’t seem like a dealer group can’t pivot as quickly as Robert has.

I’m curious to see if his vision for the EV market will be right, though. With direct-to-consumer models like Tesla and Rivian, and even Volvo committing to sell EVs direct to the customer, can dealers really compete? If Amazon is any indication, customers who are looking primarily for value might tend to buy direct from the online source if the price is right, cutting out the dealer altogether. In my perspective, that could do serious damage to efforts in customer loyalty. 

Thanks,
Seth L.


Did you enjoy this Letter to the Editor? Submit yours here today, or connect with us at newsroom@cbtnews.com

Be sure to follow us on Facebook and Twitter to stay up to date or catch-up on all of our podcasts on demand.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.

dealers

CBT News
CBT Automotive Network is a multimedia broadcast platform serving automotive professionals. With interviews featuring the biggest names in the industry, daily newscasts following top stories, up-to-date market data, and exclusive articles covering the latest industry trends, CBT is the leading voice of the retail automotive industry.

Related Articles

Latest Articles