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Traditional auto-companies, leaning towards online orders!

Global auto-industry is slowly transforming from traditional combustion into electric production,

some are trying to shift control from dealers on how those vehicles will be priced and sold, aiming to make the experience closer to the direct-selling model used by Tesla.

Ford executives recently outlined plans for a system in which dealers wouldn’t stock any EVs on their lots, but rather customers would place factory orders at a no-haggle price. The dealership is still involved but mostly to deliver the vehicle. Barron’s report

General Motors is requiring its GMC-brand dealers to follow similar guidelines to sell the recently introduced Hummer electric pickup truck.

The agreement stipulates that the dealers will be shipped only Hummers ordered by customers through GMC’s website, a GM spokeswoman said, as the trending is slowly shifting towards online sales

*IHS Markit, on auto online sale projections

Carlos Tavares, chief executive of Jeep maker Stellantis said that

The company is working in Europe on a new retail model for EVs that he described as a “direct-sales approach,” which still would involve dealers.

It is a dual effort that aims to improve customer service,which he said lags behind other industries,

Furthermore the auto maker’s high costs associated with moving to EVs, will requirean extra cost on the  pricey lithium-ion batteries.

The moves mark a significant change from the traditional model, where buyers typically choose from hundreds of vehicles on the dealership lot and negotiate pricing with a salesperson.



source: Barrons/IHT markit/thejorunalbiz

photo:Tablet inc