Car Dealers Say the Electric Vehicle Revolution Is Slowing Down

Jackson Wheeler
6 Min Read


  • Nearly 4000 US auto dealers have petitioned President Biden to delay the proposed EPA fuel-economy standards that would require 60% of all new vehicles sold by 2030 be full battery-electric vehicles.
  • Consumers who might consider an EV are most concerned about potential resale values, the service and maintenance needs, leasing versus buying, and how to charge at home or elsewhere.
  • Many of their customers are compromising between EVs and gasoline-powered vehicles by purchasing hybrids and plug-in hybrids, a Detroit area dealer executive said.

For months we have been hearing that the electric-vehicle market has reached its limit, at least for now. EV skeptics (including the oil industry) have been holding up hybrids, especially the plug-in type, as the way to reach greenhouse-gas reduction goals more quickly.

With EVs gathering dust on their lots, auto dealerships have joined in on the warnings. On November 29, nearly 4000 dealerships wrote to President Biden, asking him to put the brakes on proposed EPA fuel-economy standards that would require 60% of all new vehicles sold by 2030 be full battery-electric vehicles.

Customers of the Tamaroff Group’s dealerships who might consider EVs are most concerned with potential resale values, the service and maintenance needs, leasing versus buying, and how to charge at home or elsewhere, said Eric Frehsee, president of the group’s six suburban Detroit dealerships.

Many of their customers are compromising between EVs and gasoline-powered vehicles by purchasing hybrids and plug-in hybrids, he said.

“Currently, there are many excellent battery-electric vehicles available for consumers to purchase,” the letter from 3882 US car dealers reads. “These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric-vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.”

eric frehsee, president of tamaroff motors, in suit and tie

Eric Frehsee, president of Tamaroff Motors.

Tamaroff

This is hitting dealerships where they feel it most—in their pocketbooks. Until EV production began to catch demand early this year, most electric-powered cars and trucks were “pre-sold” or “reservation” vehicles, sold to consumers who simply needed the dealership for a place to pick it up and drive it away.

Since the much-publicized slowdown in EV demand, dealerships are still getting the EVs without the usual marketing, advertising, and floor plan incentive money handed over by the manufacturers.

The EVs are sitting on dealers’ lots like last year’s brown stick-shift station wagons. Now dealers find themselves offering MSRP discounts and other incentives, Frehsee said, including throwing in free home charging units.

Frehsee made his remarks on the Tamaroff Group’s recent “What’s the Deal” automotive retail panel on Zoom, with Martin French, partner and managing director at Berylls Strategy Advisors.

On this episode, called “EV Sales Hitting the Wrong Cord,” French attributed the slowdown in EV sales to cost and lack of consumer confidence.

auto mechanic changing spark plugs

Consumers question what type of service and maintenance work will be necessary if they switch to EVs.

kupicoo//Getty Images

“You can’t get to massive EV acceptance” with $60,000 to $70,000 EVs, French said. He noted a lot of hiccups in EV production and overall accessibility and lack of consumer confidence in finding recharging stations.

Then there’s the old bugaboo of government incentives and intervention. “People don’t like things imposed on them,” French said, while Frehsee added, “One of the biggest roadblocks has been the mandates put out by government.”

Still Frehsee remains relatively upbeat about the prospects for EVs. “There is no doubt the Honda Prologue is going to be a very successful EV,” he said, referring to an upcoming model that will be sold in one of Tamaroff’s Detroit-area dealerships. But with so much consumer fear of the unknown, he said, “hybrid is the way to go.”

“I truly don’t believe we’ll get to 100%” EVs, Frehsee said. “Especially in the Motor City.”

If you have been shopping for a battery-electric vehicle, are you finding dealers willing to haggle due to excess inventory? Please comment below.

Headshot of Todd Lassa

Contributing Editor

As a kid growing up in Metro Milwaukee, Todd Lassa impressed childhood friends with his ability to identify cars on the street by year, make, and model. But when American automakers put an end to yearly sheetmetal changes, Lassa turned his attention toward underpowered British sports cars with built-in oil leaks. After a varied early journalism career, he joined Autoweek, then worked in Motor Trend’s and Automobile’s Detroit bureaus, before escaping for Mountain Maryland with his wife, three dogs, three sports cars (only one of them British), and three bicycles. Lassa is founding editor of thehustings.news, which has nothing to do with cars.

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Jackson Wheeler is a skilled editor at Speedofdaily.com, specializing in automotive content. With a background in Journalism and Automotive Engineering, he combines his passion for cars with his writing expertise to deliver captivating articles. Jackson's deep knowledge of automotive technology and his racing experience make him a valuable asset to the team, providing readers with informative and engaging content.
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