AD #2439 – Dealer Group Predicted Tesla Issues, Ride-Hailing Getting More Popular, Wild New Holographic AR Nav System

September 20th, 2018 at 11:40am

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Runtime: 6:51

0:31 AutoNation CEO Tells Tesla ‘I Told You So’
1:22 Ride-Hailing To Grow Significantly in 2018
2:26 BMW Reveals New Z4
3:01 AMG Gets Its Hands on New A-Class
3:57 Renault Develops Last-Mile Pod Concept
5:02 Hyundai & Porsche Invest in Wild Nav System

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20 Comments to “AD #2439 – Dealer Group Predicted Tesla Issues, Ride-Hailing Getting More Popular, Wild New Holographic AR Nav System”

  1. Lambo2015 Says:

    AutoNation may enjoy the “I told ya so” now but kudos to Tesla for proving that dealers are not needed and as far as I’m concerned. Just another middleman to increase vehicle cost. I go to a dealer only to purchase which could be done online and never go back unless I need warranty work which could be done at other shops.

  2. Kit Gerhart Says:

    An area where the auto industry could save a lot of money by consolidation, is automatic transmissions. The world needs only only longitudinal torque converter unit, the ZF 8HP. Everything from 4 cylinder BMW’s to Hellcat-powered Challengers use a variant of that transmission, and it works well in all of them.

  3. Kit Gerhart Says:

    How does Tesla deliver their cars? Do they hire the same fleets that deliver other cars to dealers, do they have their own trucks, or do they use trucks that transport vehicles between Florida and Pennsylvania for “snow birds” who don’t like to drive? Maybe all of the above?

    Can a customer go to Fremont and pick up their car from the factory, if so inclined?

  4. Kit Gerhart Says:

    2 —-That’s “The world needs only ONE longitudinal…….

  5. Lex Says:

    I believe that one day (and I have said this in the past right here) is that OEM’s should have 24 hour Service and Delivery Centers setup approximately 10-50 miles from each other. These service centers would be OEM specific and not Brand specific. You drop your car off after work and find it ready to go the next morning. These centers could also be delivery centers for new vehicles and / or CPO vehicles
    which were purchased online through the OEM’s website. I believe Tesla could employ this type of business model in the near future to prevent the bottle neck it is currently experiencing, IMHO.

  6. bradley cross Says:

    Stealerships job is to extract as much money from customers as possible. Who enjoys going there unless its for a free service. The Tesla money of nationally fixed pricing eliminates 1 pain point.

  7. Danny Turnpaugh Says:

    I agree with #2 transmissions could be made at plants that sell to all auto makers at a big savings. No need each manufacturer having transmission plants of there own.

  8. Kevin Anderson Says:

    Sean, I understood that existing US law PREVENTS non-Tesla OEMs from competing against their own dealers. Is that correct?

  9. JWH Says:

    Dealerships – While I attempt to have limited interaction with dealers (2016 vehicle visited dealer for air bag programming recall & 2018 vehicle went in for steering wheel bolt recall – I even do my own oil changes on the 2016 even though GM would provide 4 oil changes at no on-cost), there are many people in this country that require dealerships for many items throughout their vehicles life. Please remember that many people are not as knowledgeable about vehicles as the subscribers to Autoline Daily.

  10. Lambo2015 Says:

    Dealerships are an outdated business model from back before the internet. Back when cars had service intervals every 15,000 miles. Todays cars can often go 100,000 miles with not much more than oil changes. You can obtain financing online. You can pick all the features and options you want, you can watch videos and see reviews. Even car brochures are a thing of the past, everything is available online. Buyers are more educated and often know more about the car than the salesman. IMO The absolute only thing a dealer offers today, is the option to actually sit in the seat and test drive a vehicle. Which apparently isnt that important to the 400,000 people that ordered Teslas without a test drive. Not sure how much this would lower the price of a car but I could see dealerships going the way of the video rental store.

  11. Kit Gerhart Says:

    9 I went to the local Toyota dealer for free oil changes for my Prius, but I had to cringe every time. I’d take the car in with an immaculate interior, and the car would be returned with dirty, and scratched door sills because whoever moved the car didn’t bother to pick up their feet. Also, there would usually be oil or grease on other parts of the interior. At least they didn’t crash my car.

    I had good experiences with the free oil changes for a 2016 Corvette. I don’t know if they took “special care” with Corvettes, or if the Chevy dealers just hire, or train employees to take care of customers’ cars. Whatever the case, the dealers should properly handle customers’ cars whether a Prius or Land Cruiser, Spark or Corvette.

  12. Kit Gerhart Says:

    10 Dealers do warranty work, which is hard to get done via the internet. With today’s cars, some service work needs to be done by dealers even off-warranty. I doubt if the average independent shop knows much about today’s infotainments systems, or even powertrains of today’s cars. OK, the current dealer locations could continue as repair facilities, even if they no longer sold cars, but what should replace dealers?

    Should there just be huge lots full of new cars scattered around, and the cars, bought on-line, delivered to customers by flat bed? Should they be driven from the lot to the customer? I’m not a big fan of dealers, either the buying experience, or aspects of the service experience, but what would be a reasonable replacement for dealers, assuming that most non-Tesla buyers might want a test drive, and many people like to trade a used car when they buy a new one?

  13. Lambo2015 Says:

    12 I could see dealers becoming nothing more than a service facility with a high and low end model of what they service. Much smaller scale with much fewer employees and overhead. You would come come in and test drive the model you are interested in and sit down at a kiosk place your order and apply for financing and have your vehicle arrive at the service center or delivered to your home within a few days. Replace the large car dealerships and inventory to a centrally located distribution center.

  14. Kit Gerhart Says:

    13 Something like that might work, and maybe they could have a an appraiser/buyer from Carmax or equivalent, to help people who want to “trade.”

  15. Bob Wilson Says:

    After watching Bob Lutz on Autoline After Hours, he needs serious seat time in a high-end Model X/S. John McElroy got a couple of days in a Tesla and understands the Tesla enthusiasm.

    Lutz claims everyone has Tesla technology but ignores the vertical integration of the Model 3. The battery and power electronics are a single subassembly that Tesla designs and builds, not subcontracted parts. Mechanical switches that age and fail are replaced by power transistors. Vertical integration to the SuperChargers.

    Tesla owned and operated, open 24×7, SuperCharger network is right-sized for Elon’s cars. In contrast, dealer chargers are locked up after hours and Sundays. Worse, 3d party chargers like VW’s Electrify America are expensive, sparse, and suffer infantile problems (see web link.) Early this year, Blink removed their Tennessee Cracker Barrel chargers. Without fast DC chargers, EVs are just expensive urban runabouts.

    Like Henry Ford in the 1900s, Elon understands everything from plug-to-wheel has to work.

  16. Kit Gerhart Says:

    15 Even though the SuperChargers exist, I suspect Teslas are used mostly as “expensive urban runabouts,” and charged at home, work places, or shopping areas. Is there any data on the total number of miles of charging obtained from the Tesla chargers, relative to the number of Tesla cars on the road?

  17. Brett Cammack Says:

    #16

    I see a lot of Teslas running the I-4 corridor between Daytona and Orlando. (“a lot” = a couple S/X and couple 3s which is a lot compared to their minority status in the overall vehicle population.) It’s unusual to not see one, actually.

    What distance is the range of an “expensive urban runabout”?

  18. Larry D. Says:

    15 You can’t teach an old dog (Lutz at 88) new tricks. You are right about the Vertical Integration, not only wrt the 3 but in Tesla overall. The models are not isolated compliance vehicles, but parts of a well thought out strategy that seems to have won every battle so far. This includes the Gigafactory so they can offer a superior, premium product at far more affordable prices than every competitor of theirs. Same with the design as detailed by Munro here, the electronics integration, the updates and fixes by remote, etc.

    They correctly launched the expensive six-figure flagships first, the S was a smashing success, and the more affordable Tesla 3 much later, and even within the 3, they correctly launched the expensive and super-expensive long range models first, and will sell the cheapo $35k later. A+ in Economic 101.

    I also made the comparison of Musk to Henry Ford. He is again revolutionizing the automobile for the masses in the 21st century.

  19. Larry D. Says:

    16 Teslas will save their owners much more $ if they are used as I detailed before, as SUBurban commuting machines, often charged 100% for free at work, and for pennies at home overnight.

    Where I work I have several colleagues whose spouses also work, the distance between the workplaces is 100+ miles, and they buy a home in the middle of this distance to split the commute. So each does 100 miles a day commuting, 300 days a year. Just the savings from the fuel must be $4,000 per vehicle, or $8,000 every year for both. On top of saving a bundle, you help the environment, you sure stick it to OPEC, and you make gas and diesel more affordable for the rest of us who don’t need an EV.

    For Urban dwellers, they need no car.

  20. Larry D. Says:

    17 You may find a partial answer in my two previous posts. the ranges of Teslas are very generous, from 250 to 310 miles. These ranges are US-spec, while the corresponding Euro-spec ranges are far greater, because in Europe, like with MPG rules, they practice wishful thinking.