Electric vehicles will generate far less service revenue than gas cars over their life expectancy.
Tesla and other sellers of electric-only cars are bypassing dealers, selling directly to customers.
Advanced safety technology in EVs is reducing crashes and the revenue from repairs.
The transition to electric and advanced technology vehicles is poised to upend the auto dealer landscape, erode profit margins, and spark a massive industry consolidation. The impact on the current auto dealer business model will be quite profound, Adam Jonas, the auto and shared mobility analyst at Morgan Stanley Research, wrote in a March 10 investor report.
There are about 16,600 new vehicle dealers in the US. Combined, they do about $1 trillion (CQ) in annual sales and have 1.1 million employees, according to the National Automobile Dealers Association.
DeSmog
As the Trump administration worked to revise and relax federal fuel economy and emissions standards for cars and light trucks, an oil refiners trade group worked connections with Republican governors to rally support for the proposed rollback.
Emails obtained by Documented, a watchdog group that tracks corporate influence in government, revealed that the American Fuel & Petrochemical Manufacturers (AFPM) were actively recruiting Republican Governors to sign onto a public comment letter supporting the weaker CAFE (corporate average fuel efficiency) standards, while also “shopping around” a pre-written op-ed with language borrowed from the American Energy Alliance, a free market advocacy group run by a former Koch Industries lobbyist.
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A recently-filed Daubert motion in a class action suit against an auto insurance company showed that “expert” testimony on the value of damaged cars repaired like new just didn’t add up.
You can polish a red 2020 SUV until it shines like it’s showroom new. But if it’s been in a collision and repaired like new, how much is that SUV worth in resale value?
That is the underlying question in a class action suit against a major auto insurance company. A Daubert motion in this matter seeks to exclude testimony of a self-proclaimed auto appraiser hired by the plaintiffs. As an FTI Consulting statistics expert retained by the defense in the motion showed, offering testimony based on speculation and arbitrary data is like driving a car with the gas gauge hovering on E. You’re not going to get very far.