Tesla Skirts NY, GM Sees No EV Profit Through 2030, Service Dept Book Club
- Author
- More Than Cars Media Network
- Published
- Wed 07 Jun 2023
- Episode Link
- None
Welcome to Wednesday as we talk about a Tesla deal with the Oneida Indian Nation allowing it to sell cars in Upstate NY. We also talk about GM’s outlook on EV profits through 2030, as well as a unique approach to service department efficiency.
- Tesla's landmark partnership with the Oneida Indian Nation will see the establishment of its first direct sales outlet in Upstate New York. The showroom, set to open in 2025, will boost access to electric vehicles and charging infrastructure in the region, augmenting the push towards green energy solutions.
- The agreement with the Oneida Indian Nation provides a legal framework for Tesla's expansion into Upstate New York, overcoming the state law that mandates vehicle manufacturers to sell through dealerships.
- The 25,000-square-foot showroom will be situated in Madison County on Oneida Indian Nation-owned land, significantly enhancing Tesla's reach beyond the New York City area.
- Tesla will begin delivering pre ordered vehicles from the site right from the casino while the showroom is under construction
- GM CEO Mary Barra has stated that she doesn't foresee profitable electric cars in the $30,000 to $40,000 range until the end of the decade or perhaps even later.
- Barra acknowledged that Tesla currently leads in EV technology, profitability, and scale, but she believes that this lead is not permanent and GM can catch up.
- She mentioned that EV battery costs are still too high to build profitable mass-market vehicles that sell for $30,000 to $40,000. However, she predicted that EV and combustion vehicle costs will equalize sometime in the latter part of this decade.
- The article points out that GM is currently selling the Chevy Bolt EV starting at $26,500 and has promised a starting price of around $30,000 for the Equinox EV. The profitability of these models is unclear.
- Service departments are finding increased efficiency and revenue through an unique approach: book clubs. Sherwood Ford in Alberta and Shaheen Chevrolet in Michigan both have implemented reading programs with much success.
- At Shaheen, team leaders read Extreme Ownership by Jocko Willink one chapter at a time, each writing a synopsis and discussing how they can apply the principles.
- After implementing some of the ideas, one service advisor's average repair order for customer-pay work, which jumped 23 percent in one quarter to $166.38.
- For the team at Sherwood, reading isn’t mandatory, but employees are paid to read. Around 40% of the employees can get books from an office “library.”
- They are paid $5-$10 for a short book, and longer books bring more. Employees have to write a couple-hundred summary and are invited to join a daily service advisor's meeting, part of which discusses a book.
- At Shaheen, team leaders read Extreme Ownership by Jocko Willink one chapter at a time, each writing a synopsis and discussing how they can apply the principles.
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