Electric Vehicle (EV) Impacts on the Car Industry

Alex Snyder shares insights from a RefreshFriday discussion with Brian Kramer about the challenges of acquiring used EVs, particularly how Tesla Model Y price fluctuations cascade through the entire pre-owned EV market valuation. The thread highlights the added complexity dealers face when purchasing used EVs, including the critical need to assess battery health before acquisition. A key takeaway is identifying market indicators that signal the optimal timing for buying EVs.

Dealers express skepticism about the government's ability to efficiently process EV tax credit transfers, drawing parallels to the slow reimbursement process from the Cash for Clunkers program, but are pleasantly surprised to learn the IRS has committed to issuing advance payments within 72 hours. A critical takeaway is the October 31, 2023 enrollment deadline—dealers need to register promptly regardless of their EV stance, as even "no EV" stores may benefit from transferring credits on used EVs under $25k to maximize gross profit.

Ford issued a recall on approximately 15,000 Fusion Energi plug-in hybrids (2019-2020 model years) due to a defective current interruption device that poses a fire risk, with the problematic directive telling owners not to charge or use the battery while no fix is currently available. The original poster expresses frustration over the impractical nature of the recall, essentially rendering the vehicles' hybrid functionality unusable. A brief follow-up reply suggests added frustration, possibly referencing concurrent labor issues at Ford.

A dealer is offering a new self-service training tool designed to help salespeople develop expertise on electric vehicles, covering both manufacturer-specific information and general EV ecosystem knowledge. The tool includes interactive games and quizzes, with dealership owners able to track employee progress and mastery of the material. The discussion highlights a gap in the market: while manufacturers provide model-specific training, dealers need broader EV education resources for their sales teams.

A former Wall Street trader argues that hybrid and electric vehicles represent the next major market wave, citing Tesla as a promising investment opportunity and highlighting GM's new eAssist mild-hybrid technology in vehicles like the Buick LaCrosse as evidence that mainstream adoption is imminent. While participants acknowledge concerns about sacrificing engine performance and exhaust sound for fuel efficiency, there's general excitement about the near-term availability of practical hybrid and electric options across multiple manufacturers. The thread reflects early 2011 optimism about EV/hybrid technology entering the mass market, with Buick dealers particularly positioned to capitalize on this shift.