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(The Drive)   When faced with a buyout offer to close or the option to sell EVs, one in six Cadillac dealerships took the buyout   (thedrive.com) divider line
    More: Amusing, General Motors, Cadillac dealerships, number of dealerships, Wall Street Journal, Electric charge, Cadillac, Cadillac's vehicles, dealerships  
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1113 clicks; posted to Business » on 04 Dec 2020 at 11:37 PM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-12-04 6:18:27 PM  
Good riddance.

*shrugs*
 
2020-12-04 6:31:12 PM  
If the dealers are as old as their customers, they're ready to retire anyway.
 
2020-12-04 6:41:23 PM  
EVs means capital investment while at the same time service revenue will go down because EVs have fewer moving parts. Lose-lose for the dealers.
 
2020-12-04 7:59:19 PM  

GardenWeasel: EVs means capital investment while at the same time service revenue will go down because EVs have fewer moving parts. Lose-lose for the dealers.


This. I wouldn't be surprised if dealers make little money from the original car sale, that's where buyers shop around, get quotes, get prices from the internet, haggle etc, but make their profit from servicing where those same buyers generally just book it in for a service and pay the bill without quibbling. And do so every six thousand miles come what may.
What needs servicing on an EV? The brakes? With regenerative braking even those are going to last longer.
 
2020-12-04 8:17:51 PM  
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2020-12-04 9:48:34 PM  

GardenWeasel: EVs means capital investment while at the same time service revenue will go down because EVs have fewer moving parts. Lose-lose for the dealers.


This.  Better to take the money and run instead of barely scraping by until you go under.
 
2020-12-04 11:40:48 PM  
too what?
 
2020-12-04 11:45:05 PM  
Some people will always cling to the belief that burning gasoline is the goal, not transportation.
 
2020-12-04 11:45:31 PM  
Sign of the times.  A LOT of franchise owners in the Year of Trump's Virus would take a buyout offer.

If they tried this last year I bet they would have got a lot less buy outs.
 
2020-12-04 11:46:23 PM  

Carter Pewterschmidt: GardenWeasel: EVs means capital investment while at the same time service revenue will go down because EVs have fewer moving parts. Lose-lose for the dealers.

This. I wouldn't be surprised if dealers make little money from the original car sale, that's where buyers shop around, get quotes, get prices from the internet, haggle etc, but make their profit from servicing where those same buyers generally just book it in for a service and pay the bill without quibbling. And do so every six thousand miles come what may.
What needs servicing on an EV? The brakes? With regenerative braking even those are going to last longer.


Do you honestly think a GM built automobile will not need servicing?  They practically invented planned obsolescence.
 
2020-12-04 11:49:40 PM  
We didn't service our Chevy bolt once during our three year lease. It probably could've used new tires but we had stopped commuting.
 
2020-12-04 11:59:04 PM  

tarkin1: Sign of the times.  A LOT of franchise owners in the Year of Trump's Virus would take a buyout offer.

If they tried this last year I bet they would have got a lot less buy outs.


Fewer.
 
2020-12-05 12:01:07 AM  

HempHead: Do you honestly think a GM built automobile will not need servicing?  They practically invented planned obsolescence.


An electric car has a small fraction of the number of moving parts in an internal combustion car.
 
2020-12-05 12:27:25 AM  
Lol. Everyone going on about electric cars needing fewer service visits.

My cars require an oil change every 10k miles. It takes about 40k miles before you have anything more done to them, and even then, it isn't all that much compared to cars of 10 years ago.

Worrying about car maintenance costs is literally way down the list of things I think of.

In contrast, look at residual values on used electric vehicles. They suck. Hard.

So yeah. Save on a few service visits, but lose massively when you want to trade in and get something new compared to a gasoline powered car.
 
2020-12-05 12:29:16 AM  
In other news, 1 in 6 Cadillac dealerships weren't likely to survive the next 5-10 years anyway.

I also feel I'm being generous by extending that guess out to 10 years.
 
2020-12-05 12:40:25 AM  
Like the article says, they have too many dealerships.  I would expect the higher payouts (up to the $1 mil) would go for dealerships in cities where there are several.

In that situation, if you're Joe Blow Motors and you sell 8 different car brands at a handful of sites around a metro area, taking the mil to drop one less desirable brand might be worth it.
 
2020-12-05 12:40:58 AM  

jaytkay: Some people will always cling to the belief that burning gasoline is the goal, not transportation.


I have never met a person who believes that burning gas is a goal (let alone THE goal), not transportation. I mean, even if you used a car as a space heater, combustion is not the goal.

Have you met someone like this? The rolling coal guys?
 
2020-12-05 12:43:15 AM  
Dealers: People don't want to buy electric vehicles.

Also Dealers: We don't want to make on-site  upgrades in order for people to buy electric vehicles from us.
 
2020-12-05 12:54:44 AM  

gar1013: Lol. Everyone going on about electric cars needing fewer service visits.

My cars require an oil change every 10k miles. It takes about 40k miles before you have anything more done to them, and even then, it isn't all that much compared to cars of 10 years ago.

Worrying about car maintenance costs is literally way down the list of things I think of.

In contrast, look at residual values on used electric vehicles. They suck. Hard.

So yeah. Save on a few service visits, but lose massively when you want to trade in and get something new compared to a gasoline powered car.


Well, it is the hypothesis, see. Someone posted their "all I care about is profit" view of deplorable humans operating businesses that have something to do with fossil fuels, and we are off to the races with confirmation bias. Big Oil. GM killed the electric car. etc.

Meanwhile, everyone else is trying to figure out what is really going on. In Japan, inspections are mandatory. You WILL be inspected at some intervals after you buy your car. So dealerships make money. Stuff gets repaired and fixed. People watch the expenses for inspection and repair increase to the point where they decide to get a new car.

Point is, the same is true for EVs. If one assumes that they have fewer problems and less to inspect, then dealerships in Japan should LOVE to sell EVs and push them hard for customers so that they can get that sweet sweet inspection money for doing nothing for the next 10 years and then replace the battery and start over again. That does not seem to be happening. Nissan in particular has had headaches with batteries, which have raised costs for the dealers and the customers.

Theoretically, EVs should need less after care. Theoretically, dealerships in Japan would love EVs and those in the US would shun them. But one wonders.

I always like to play the game of "What do they know that I don't know?" After all, they are Cadillac dealerships. Presumably they know what they can sell and service and what they can't. Presumably they have been lobbied hard by GM to sell these vehicles and they won't do it. So I am loath to assume that they are the stupidest people in the room. Others are likely to "know it in their bones."
 
2020-12-05 1:04:21 AM  

Gestalt: Dealers: People don't want to buy electric vehicles.

Also Dealers: We don't want to make on-site  upgrades in order for people to buy electric vehicles from us.


Well. Why would someone called a DEALER refuse to sell something that they can sell? Why do we just assume they have some visceral bizarre bias instead of assuming that they know what they can sell and what they can't. I mean. If I knew I could sell air conditioners in Arizona for 3000 bucks a piece, would I refuse to do it just because I hate air conditioners? Are these really vindictive, irrational people to the point that they will walk away from easy money?

And they don't want to make on-site upgrades? Is that so crazy? I don't know what the risk reward proposition is here. But I don't think they are being irrational. Why would they be?

I mean, we spend half of the time vilifying them for wanting to make a profit, and the other half of the time telling them how to make a profit.

Let's just call it what it is. People who like EVs just can not stand it when they encounter someone who is not enthusiastic about risking their entire livelihood supporting EVs. That is some cocoa puffs right there.
 
2020-12-05 1:07:11 AM  

Nonrepeating Rotating Binary: Like the article says, they have too many dealerships.  I would expect the higher payouts (up to the $1 mil) would go for dealerships in cities where there are several.

In that situation, if you're Joe Blow Motors and you sell 8 different car brands at a handful of sites around a metro area, taking the mil to drop one less desirable brand might be worth it.


Sure. And I wonder what the geographical distribution is like. That might be revealing.
 
2020-12-05 1:19:30 AM  
It's too bad they'd rather fold, but I'd probably take that deal too. Something so far removed from internal combustion is going to be a hard sell when your average consumer has grey hair. (Cadillac is becoming more popular with millenials, though) That and convincing them they will have to install a charging station at the house if they want to recharge faster than 8 hours? Good luck. If they opt out of 240V charging they'll have to wait, or have another vehicle, and I don't see trends supporting that. I see households with fewer cars, not more. If they are going to have a car, it's going to be one they can depend on and something they are familiar with. It follows the "principle of least surprise."

/dad is a greyhair and loves his ELR
//even more than a CTS-V
 
2020-12-05 1:20:11 AM  
Broadly regarding service in general.

This is an industry wide "problem", and it might shock nobody to know that Honda is particularly having "trouble" with it. Stuff just does not break and fail as it used to. The EV model of having less service is not as big a deal as vehicles being designed and improved incrementally to the point that they just do not fail.

Not surprisingly, the solution in Japan is to try to reduce costs of providing service and to increase other revenue streams to compensate and adapt to a new business model. The increasing price of new vehicles is a concern for customers, but the value is increasing right along with it.

I am going to come out and say that the purported smaller number of service calls from EVs is probably not the main driver of their decision. They are already dealing with that. My guess is that they do not think they can sell the vehicles. They do not understand them. They are wary of risks from liability and problems posed by batteries.

And sheesh. The headline could just as well have been "Five out of six cadillac dealerships give thumbs up to EVs" and we would be having a different discussion.

/SHEESH!
 
2020-12-05 1:26:11 AM  

Stibium: "hard sells"


Keep in mind, these are also the people who wanted big cars with big carburetors instead of smaller cars with turbos. I mean, if a spinny-whooshy thing seems complicated, you almost certainly won't be able to manage an EV.

/nb4 future facebook memes about boomers licking the battery packs
 
2020-12-05 4:42:46 AM  

jaytkay: Some people will always cling to the belief that burning gasoline is the goal, not transportation.


I read the comments.
Don't read the comments (except on Fark)
Now the trolls have burned their stupid in my brain
 
2020-12-05 6:10:37 AM  

2fardownthread: Let's just call it what it is. People who like EVs just can not stand it when they encounter someone who is not enthusiastic about risking their entire livelihood supporting EVs. That is some cocoa puffs right there.


Nah. Everyone needs a livelihood. No one is begrudging people that.

Those of us who like EVs get upset when people spread false information about clean(er) transportation and refuse to change their views when presented with new information. It's one thing if you repeat a falsehood because you read it online and didn't really give it proper consideration. It's another thing to doggedly cling to that falsehood even when presented with facts to the contrary. Tenacious stupidity is easily confused with maliciousness.

Just an observation. Not specific to any particular person.
 
2020-12-05 6:35:46 AM  

gar1013: In contrast, look at residual values on used electric vehicles. They suck. Hard.


I'll put a TL;DR here at the beginning: Nissan is partly to blame for used EVs being hard to sell. They cut costs on the LEAF which led to severe range loss and then tied the warranty to a lying battery degradation meter. People now associate EVs with range anxiety and battery degradation. They destroyed a lot of good will for electric cars by trying to save a few yen.

One explanation for low resale value in non-Tesla EVs is a lack of demand. Another explanation is that there's an image of severe battery degradation associated with used EVs. The data say otherwise. EVs with battery cooling suffer relatively little range-loss. Even cars with very small packs like the Hyundai Ioniq or the original BMW i3 are proving to be quite stout even as the odometer climbs well past six digits. And yet the image persists.

One culprit is Nissan. In order to cut costs on the original LEAF, they used MnO batteries. They're fantastic for grid storage, but they're prone to scaling on the cathode if they're run too hard (like in a vehicle for example... oops). They also decided against putting a cooling system on the pack which exacerbated the problem. EV batteries are happiest when they're warm, but not too warm. They really don't like to be too much above 35°C.

LEAF owners figured out that the battery needed a cooler early on, but Nissan continued to try to fix it with new chemistries. The first new chemistry they tried actually degraded more than the first. They tested it in labs by putting the packs in ovens and charging and discharging them hundreds of times. The experimental packs showed little degradation, but what Nissan forgot is that people don't drive constantly. A hot parking lot is a Nissan LEAF's mortal enemy.

People thought Nissan was just unaware of the issue at first, but it turns out they knew and tried to hide it. The battery degradation meter in a LEAF is designed not to move at all until the pack hits 85% health. Your warranty is tied to that graphic and not the actual capacity of the battery. There are stories of Nissan refusing to honor the warranty even when degradation was bad enough to beat their cheating system. Shady, shady stuff.
 
2020-12-05 7:29:03 AM  

gar1013: Lol. Everyone going on about electric cars needing fewer service visits.

My cars require an oil change every 10k miles. It takes about 40k miles before you have anything more done to them, and even then, it isn't all that much compared to cars of 10 years ago.

Worrying about car maintenance costs is literally way down the list of things I think of.

In contrast, look at residual values on used electric vehicles. They suck. Hard.

So yeah. Save on a few service visits, but lose massively when you want to trade in and get something new compared to a gasoline powered car.


The prices on used EVs make more sense when you remember you only get the $7500 tax rebate if you buy new.
 
2020-12-05 7:31:59 AM  
That's not surprising.  If you live in a large city, you're probably unaware of the many tiny dealerships in small towns and cities in America.  My town has 5,000 people.  When I was a kid, we had a Pontiac (just pontiac) and a Dodge dealership.  Both are long gone.  The last 50 years have seen the end of so many dealerships. These guys are just cashing out because there isn't a lot of money in this for them.
 
2020-12-05 8:14:50 AM  
I lived in Vinita Oklahoma for about six months.   There was an EV charging station at Wal-Mart.  I never once saw anyone actually use it.   There were cobwebs on some of the charging plugs.   I am currently in PA and have to park on the street.  Having a charger at the house is an impossibility in some places.  In all honestly I would do fine with an electric car.  I don't go more then 10 miles a day and some days less.
 
2020-12-05 8:23:17 AM  

Carter Pewterschmidt: I wouldn't be surprised if dealers make little money from the original car sale


Jesus, you sound like every bullshiatting car salesman I've ever interacted with who did their horse's arse dance telling me "We're losing money selling this car to you!" Yeah, sure, whatever.

Carter Pewterschmidt: make their profit from servicing where those same buyers generally just book it in for a service and pay the bill without quibbling


I know of no one who does this. The only reason people go to a dealership for services is if it's warranty work, or if it's something very specific that a competent independent mechanic cannot do for one reason or another.

I literally only go to the Chevy dealership for oil changes because they have a weird pricing structure that is the cheapest in town. The AC Delco oil for my car can be bought for $9 a quart at their parts counter and the AC Delco oil filter is $18. But for some reason they have an oil change for my car that is $39.95 (includes the filter and up to 6 quarts of oil). A tire rotation is $10 more, bringing the total to about $55 after some taxes. My car uses 5 quarts of oil and I make them give me the 6th quart in the bottle for me to carry out and keep it for topping up if I need it. My math says that is $72 in parts/materials that they are selling me for $40, so I don't know how their fuzzy accounting works.

Any other branded oil change shop in town (Pennzoil, Valvoline, etc.) either doesn't have the correct oil for my car, doesn't have the filter for my car, or it's always a cost of at least $70 for an oil change with no tire rotation. I've given up trying to figure it out, but my wallet tells me just go to the dealership for oil changes.
 
2020-12-05 8:24:46 AM  

tarkin1: If they tried this last year I bet they would have got a lot less buy outs.


Linked article in this one points out that very thing. GM offered buyouts in 2016 (the money was less) and zero or almost zero dealerships took the offer.
 
2020-12-05 8:26:16 AM  
FTFA: General Motors knows all too well that a fully electric future is coming. As a company, GM wants to have 30 EVs for sale by 2025 and Cadillac will reportedly be leading the Detroit automaker's electric charge in the United States.

The author needs to revise his message to make it clear to the reader.  GM doesn't want to have '30 EVs for sale by 2025'; but rather, '30 EV models for sale by 2025'.
 
2020-12-05 8:27:34 AM  

Likwit: gar1013: In contrast, look at residual values on used electric vehicles. They suck. Hard.

I'll put a TL;DR here at the beginning: Nissan is partly to blame for used EVs being hard to sell. They cut costs on the LEAF which led to severe range loss and then tied the warranty to a lying battery degradation meter. People now associate EVs with range anxiety and battery degradation. They destroyed a lot of good will for electric cars by trying to save a few yen.

One explanation for low resale value in non-Tesla EVs is a lack of demand. Another explanation is that there's an image of severe battery degradation associated with used EVs. The data say otherwise. EVs with battery cooling suffer relatively little range-loss. Even cars with very small packs like the Hyundai Ioniq or the original BMW i3 are proving to be quite stout even as the odometer climbs well past six digits. And yet the image persists.

One culprit is Nissan. In order to cut costs on the original LEAF, they used MnO batteries. They're fantastic for grid storage, but they're prone to scaling on the cathode if they're run too hard (like in a vehicle for example... oops). They also decided against putting a cooling system on the pack which exacerbated the problem. EV batteries are happiest when they're warm, but not too warm. They really don't like to be too much above 35°C.

LEAF owners figured out that the battery needed a cooler early on, but Nissan continued to try to fix it with new chemistries. The first new chemistry they tried actually degraded more than the first. They tested it in labs by putting the packs in ovens and charging and discharging them hundreds of times. The experimental packs showed little degradation, but what Nissan forgot is that people don't drive constantly. A hot parking lot is a Nissan LEAF's mortal enemy.

People thought Nissan was just unaware of the issue at first, but it turns out they knew and tried to hide it. The battery degradation meter in a LEAF is designed not to move at all until the pack hits 85% health. Your warranty is tied to that graphic and not the actual capacity of the battery. There are stories of Nissan refusing to honor the warranty even when degradation was bad enough to beat their cheating system. Shady, shady stuff.


So I'm waiting for the fires to begin...either from crashes or the results of extended service in the rust belt.

When people notice just how hard those fires are to put out when you're dealing with a vehicle's worth, it'll cause people to pause.

The electric supercar Richard Hammond crashed kept bursting into flames for several days after he crashed.
 
2020-12-05 8:28:12 AM  

thurstonxhowell: gar1013: Lol. Everyone going on about electric cars needing fewer service visits.

My cars require an oil change every 10k miles. It takes about 40k miles before you have anything more done to them, and even then, it isn't all that much compared to cars of 10 years ago.

Worrying about car maintenance costs is literally way down the list of things I think of.

In contrast, look at residual values on used electric vehicles. They suck. Hard.

So yeah. Save on a few service visits, but lose massively when you want to trade in and get something new compared to a gasoline powered car.

The prices on used EVs make more sense when you remember you only get the $7500 tax rebate if you buy new.


You don't get a rebate. You got a price increase that didn't cost you anything - the government paid it.
 
2020-12-05 8:30:05 AM  

mrmopar5287: Carter Pewterschmidt: I wouldn't be surprised if dealers make little money from the original car sale

Jesus, you sound like every bullshiatting car salesman I've ever interacted with who did their horse's arse dance telling me "We're losing money selling this car to you!" Yeah, sure, whatever.

Carter Pewterschmidt: make their profit from servicing where those same buyers generally just book it in for a service and pay the bill without quibbling

I know of no one who does this. The only reason people go to a dealership for services is if it's warranty work, or if it's something very specific that a competent independent mechanic cannot do for one reason or another.

I literally only go to the Chevy dealership for oil changes because they have a weird pricing structure that is the cheapest in town. The AC Delco oil for my car can be bought for $9 a quart at their parts counter and the AC Delco oil filter is $18. But for some reason they have an oil change for my car that is $39.95 (includes the filter and up to 6 quarts of oil). A tire rotation is $10 more, bringing the total to about $55 after some taxes. My car uses 5 quarts of oil and I make them give me the 6th quart in the bottle for me to carry out and keep it for topping up if I need it. My math says that is $72 in parts/materials that they are selling me for $40, so I don't know how their fuzzy accounting works.

Any other branded oil change shop in town (Pennzoil, Valvoline, etc.) either doesn't have the correct oil for my car, doesn't have the filter for my car, or it's always a cost of at least $70 for an oil change with no tire rotation. I've given up trying to figure it out, but my wallet tells me just go to the dealership for oil changes.


One type of car consumer you're neglecting:  those who don't have to pay for service.

Once you start hitting luxury car territory,  you generally don't "pay" for service as a separate transaction. It's built into the price of the car.
 
2020-12-05 8:35:05 AM  

Gestalt: We don't want to make on-site  upgrades in order for people to buy electric vehicles from us.


It probably depends on what GM wants done.

When the Volt arrived, dealers didn't have to do anything because those cars could be driven on gasoline power and charged from a regular 120v socket. It wasn't ideal, but there wasn't any investment. However, when the Bolt EV arrived the dealerships wanting to sell it were required to install at least one fast charger: https://insideevs.com/news/3​30193/chev​rolet-bolt-dealers-required-to-install​-ccs-chargers/

Lots of these chargers are inside the service department. My local Chevy dealership has one charger and it's in the service area, so no one can use it when they are closed. Lots of other Bolt EV owners report some dealerships have chargers outside, but they are locked inside gates to where they're not accessible when the dealership is closed. Either that, or they're on a wall and blocked by regular gasoline cars parked there. Worst is when the charger is in the back of a service bay somewhere and no one can uses it because a mechanic has a Tahoe or something up on the lift with the transmission dropped out of it, meaning it will be a couple days before you can get to the charger.

If GM has wised up to that and now requires the dealerships to add chargers out in the lot somewhere that are open to the public 24/7? Yeah, that could be a huge investment to add electrical conduits run out there and then pay for the chargers to be installed. And if GM is requiring the Tesla Supercharger type of model where charging is free unlimited or at least free for a certain amount of kWh, that's an expense the dealership has to eat unless GM is reimbursing for the power bills.
 
2020-12-05 8:42:22 AM  

2fardownthread: In Japan, inspections are mandatory. You WILL be inspected at some intervals after you buy your car. So dealerships make money. Stuff gets repaired and fixed. People watch the expenses for inspection and repair increase to the point where they decide to get a new car.


Japan has annual tax/registration fees that have a steep increase after about 5-6 years of ownership. This is done as a way to reduce pollution, because the vehicle fleet is incentivized to be replaced with new vehicles that basically emit zero pollution for at least the first few years of ownership.

Japan also does this as a direct subsidy to their huge auto industry. They tax the shiat out of owners of old cars to make them buy new cars, keeping all the auto workers employed.

2fardownthread: Nissan in particular has had headaches with batteries


Nissan did this to themselves by cheaping out on battery cooling. There is literally no active cooling of the battery (no air circulation inside the pack, no liquid circulation inside the pack) and that's why their batteries have terrible lifespans.
 
2020-12-05 8:44:59 AM  

Stibium: dad is a greyhair and loves his ELR


WOW, WE FOUND SOMEONE WHO BOUGHT ONE OF THOSE?!
 
2020-12-05 8:53:21 AM  

thurstonxhowell: $7500 tax rebate


It's a tax CREDIT, not a rebate, meaning you only get $7,500 off your taxes if you owe $7,500 in the first place.

One of my co-workers got screwed on that one. The Mitsubishi dealership sold them an i-MiEV because the price was right for what they were going to use it for (commuting to work and around town). The salesman sold them on "You'll get $7,500 back when you file your taxes!" Well, they filed their taxes and found out they were only getting $2,200 back because that's all they owed, so their car purchase became $5,300 more than they expected.

Did the dealership lie to them? Did the dealership just not understand the tax credit? Probably a combination of both.

I suggested they go to small claims court for the $5,300 from the dealership, but they didn't. They just ate it.
 
2020-12-05 8:55:26 AM  

gar1013: thurstonxhowell: gar1013: Lol. Everyone going on about electric cars needing fewer service visits.

My cars require an oil change every 10k miles. It takes about 40k miles before you have anything more done to them, and even then, it isn't all that much compared to cars of 10 years ago.

Worrying about car maintenance costs is literally way down the list of things I think of.

In contrast, look at residual values on used electric vehicles. They suck. Hard.

So yeah. Save on a few service visits, but lose massively when you want to trade in and get something new compared to a gasoline powered car.

The prices on used EVs make more sense when you remember you only get the $7500 tax rebate if you buy new.

You don't get a rebate. You got a price increase that didn't cost you anything - the government paid it.


If you say so. I mean, I know I paid a good price, but you're gonna be very certain I'm wrong, so you do you.
 
2020-12-05 8:58:27 AM  

gar1013: Once you start hitting luxury car territory,  you generally don't "pay" for service as a separate transaction. It's built into the price of the car.


True, but those basic services are mostly pennies in the overall cost of the vehicle. Oh, wow, if I buy a Mercedes they will replace my wiper blades for the first 3 years! That saves me [checks] about $15! Same thing with oil changes and air filters, though I can imagine some oil changes on expensive brands like Porsche are easily close to $200.

My Chevy Cruze came with "free service" for the first 2 years or 24,000 miles, which meant oil changes and tire rotations. The oil change interval is 7,500 miles so I came back at 22,500 miles for the third oil change and the dealership insisted that the included service was only two oil changes. We had to argue about the fine print where it said oil changes were covered through 24,000 miles, so a few phone calls to customer service got me my 3rd oil change. Nowhere in their fine print of my purchase did it say the limit was 2 oil changes, but maybe they've changed that now.
 
2020-12-05 9:25:04 AM  
It appears that Cadillac's electric future was unappealing to a number of dealerships, but GM really wanted them gone anyway.

This sums up the reality of the situation.
 
2020-12-05 10:00:32 AM  

Nonrepeating Rotating Binary: if you're Joe Blow Motors and you sell 8 different car brands at a handful of sites around a metro area, taking the mil to drop one less desirable brand might be worth it


From the Wall Street Journal: "Most dealers who accepted the buyout also own one or more of GM's other brands-Chevrolet, Buick and GMC-and sell only a handful of Cadillacs a month, the people familiar with the effort said."
 
2020-12-05 10:17:58 AM  

mrmopar5287: Japan also does this as a direct subsidy to their huge auto industry. They tax the shiat out of owners of old cars to make them buy new cars, keeping all the auto workers employed.


This. It's a racket.
 
2020-12-05 10:23:48 AM  

Likwit: mrmopar5287: Japan also does this as a direct subsidy to their huge auto industry. They tax the shiat out of owners of old cars to make them buy new cars, keeping all the auto workers employed.

This. It's a racket.


Yep. Imagine if US buyers were about 99% loyal to Ford and GM, and vehicle registration started costing a couple thousand dollars a year once the car was 5-6-year-old. We'd see lots of domestic autos sold every year, right?!
 
2020-12-05 10:40:14 AM  
In the 70s, US manufacturers started pushing rebranded foreign cars on dealerships. That wasn't always appreciated but they had nothing else.

Eventually, some dealerships started adding foreign cars to their collection. Bill Smith Cadillac would just open Bill Smith Toyota. Many met tremendous backlash from customers and the US automakers. Some dealers absolutely refused to sell any foreign cars period.

We all know what we're driving today.

And really, we should all understand what we'll be driving tomorrow.
 
2020-12-05 11:06:06 AM  

gar1013: In contrast, look at residual values on used electric vehicles. They suck. Hard.


That'll happen when the most expensive part of the car (battery) gets so much better and cheaper to produce over the course of a few years. That's not an argument against EVs, it's a testament to how far they've come and are continuing to go as the technology matures.
 
2020-12-05 11:19:13 AM  

mrmopar5287: I know of no one who does this. The only reason people go to a dealership for services is if it's warranty work


mrmopar5287: I literally only go to the Chevy dealership for oil changes



That's like saying "nobody" goes to McDonalds because you don't. Lots of people to to the dealer because it's like McDonalds - it's a brand name and will be sufficient. Also, some dealers have concierge services like courtesy vans and loaners which attract people who are not worried about pricing.

Trying to find an honest, skilled, reasonably priced independent mechanic is difficult. Going to the dealer is easy.
 
2020-12-05 11:21:30 AM  

GardenWeasel: EVs means capital investment while at the same time service revenue will go down because EVs have fewer moving parts. Lose-lose for the dealers.


The dealership I've been buying from and getting service at was sold to a new owner about a year ago. The first thing the new owner did was get rid of the bodywork and paint shop. I asked the service manager why they would do that given that was likely to be the majority of work in an electric future. He agreed, and was gone by the next time I brought my car in.

It's too bad they're going to fail; I'd developed a good relationship with those guys.
 
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