AD #2393 – Dealerships in Trouble, Aston & Rolls Develop VTOLs, Tesla Consolidates Electronics for Big Savings

July 17th, 2018 at 11:38am

Runtime: 6:50

0:28 Dealerships Will Continue to Disappear
1:14 Glickenhaus Shows Throwback Models
2:31 Clarification on Genesis Build Model
2:58 Aston Martin & Rolls Royce Develop VTOLs
3:57 VW I.D. R Breaks Another Record
4:45 Tesla Consolidates Electronics for Big Savings
5:57 Musk’s Twitter Attacks Hurt Tesla

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8 Comments to “AD #2393 – Dealerships in Trouble, Aston & Rolls Develop VTOLs, Tesla Consolidates Electronics for Big Savings”

  1. GM Veteran Says:

    Hopefully there are some better comparisons on cost than the rearview mirrors shown in today’s clip. The reason the BMW and Chevy mirrors cost more is because they contain more and do more. Reading the note at the bottom of the page, it says the Tesla mirror has no additional buttons or powered functionality, the BMW has buttons and powered functionality and the Chevy mirror has powered functionality and contains a camera. Of course those mirrors are going to cost more. I don’t have a position either way on Tesla’s cost, packaging or functionality. I just appreciate true apples-to-apples comparisons.

  2. Usefull Says:

    “As mobility services expand and more self-driving vehicles come online, many customers will not need to purchase their own vehicle.” Straight out of the mouths of their PR firms. I will acknowledge the fact that big dealerships will buy up smaller ones, but the above line is so many years too early to be believable to me.

  3. Kit Gerhart Says:

    In much of the world, there are a lot of true “multi brand” dealers, like one in Denmark that sells BMW, Chevrolet, Fiat, Hyundai, Nissan, Skoda and Volkswagen. If this happens in the U.S., there might be a LOT fewer dealers, but not because of ride sharing.

  4. Gene E Says:

    As far as decreasing numbers of dealerships: We have to remember the dissolving of dealerships during the reorganizations of GM and Chrysler. There were 2 Chevy dealerships within 9 miles of each other here in rural Oklahoma. The one in my town relocated and made the investment in the GM style facility, while the one in the next town resisted the change. That one closed 2 years ago. There was NOT a Chevy dealer in either larger town 25 miles in each direction from here. Now there is and they both are the new style.

  5. BobD Says:

    I’m a big fan of Sandy Munro and it foolish for someone to second guess him, but with that said, I’m very suspicious of his cost estimation of the GM Bolt rear view mirror. Now if the low-volume Bolt was the only place GM uses the integrated backup camera display, that cost might be reasonable, but GM uses that design (or a very similar designs) in a lot of other vehicles such that the volume likely drives down the cost significantly. Plus if you look on Amazon, you can find similar mirrors with similar function that RETAIL for $60-100 from China. So I don’t think GM would have a cost twice the amount that some aftermarket vendor is retailing. For that matter, if the Tesla mirror assembly is simply a mirror with no other function, it seems like that should be a $5 item in volume, not $30.

    And on the massive integration of electronics Tesla has done, while it might save on the initial manufacturing costs in eliminating dozens of much smaller circuit board, I sure would hate to be the owner who has to pay for one of those huge replacement board if it goes bad, and of course it has a much lower reliability just due to its complexity. Sometimes for serviceability (assuming you care about your owners), it is better to have multiple simpler circuit boards (or whatever) than one massive one.

  6. Kit Gerhart Says:

    4 In my part of central Indiana, Ford dealers, more than others, have decreased in numbers. There were small town dealers, which probably opened when they were still making Model T’s. One such dealer closed in around 2008, and another will close in their small town location, and move to a larger city, replacing the Ford part of a former Ford-Toyota-Honda store.

  7. Bob Wilson Says:

    #5 – I bought one of those $125 Chinese smart mirrors with backup camera and GPS. It failed in six months. Automotive temperature range testing standards were not met.

    Single board systems made PCs, tablets, and smartphones affordable. A retired network engineer, connectors were the most common failure point including intermittent.

    Tesla also uses software to replace mechanical and electro-mechanical systems. Software has no weight and can be upgraded over-the-air.

  8. MJB Says:

    I doubt that autonomy or ride-sharing will have any impact on the number of dealerships for many years to come.

    I did dealership design at FordLand (the land development arm of Ford) for 6+ years. I was there during the GM & Chrysler bailout years. dealership consolidations were in full-swing (at Ford, anyway) long before ride sharing and autonomous vehicles were even household words.

    For as many dealerships to have existed simultaneously as there used to be (and I’m just talking about Ford, Lincoln and Mercury), you’d think that they were just barely getting by. Not so for the most part.
    But that was just proof positive that the dealership network can remain profitable even when sales are spread thin. Just as it will for the first couple decades of heavy ride sharing use.

    Plus, don’t forget, the dealers make their biggest profits from their service departments. And those ride-share vehicles will still be bought off of dealer lots.