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Are Electric Vehicles a Threat?

By: Bel Air Partners
Published: December 11, 2021

The following Road and Track article has distinct warnings for car dealers, but misses a key consideration. It argues that electric cars pose an existential threat to manufacturers, particularly high lines, and by inference car dealers. Product differentiation will suffer at the hands of new electric power plants. Consequently, the race for consumer loyalty might be brought back to the starting lines. I’m reminded of the recent success of Subaru at one end and Land Rover at the other, as the consumer everywhere saw all wheel drive as a major selling point, even in Florida. This is bigger.

Although the article doesn’t say it but range between recharging will become more a selling point than horsepower or time to 60 miles per hour. Furthermore, since electric cars universally eliminate NVH considerations, luxury brands won’t be able to promote engine smoothness as a differentiator.

As the owner of three Porsches and one Mercedes, maybe a Hyundai Ioniq is in my future?

The conclusion is this. Brand and consequently dealership desirability could be scrambled in the future. Who are going to be the winners? No one knows. The only answer for car dealers is to be differentiated among several brands.

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