Automotive

Automakers Flirt With Direct Sales

We want to be very clear: We believe franchise automotive retail dealerships are the best way to sell & deliver cars and serve communities across the US. Yes, we are talking to you all OEMs!
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Automakers Flirt With Direct Sales

As legacy automakers inch closer to releasing EVs to the market, they also eye Tesla's direct-sales model. Moving sales online would give companies the ability to fix prices and control more about the perception of their brand. Recently, Ford outlined a plan that mentioned not stocking lots, but using dealers as a point of delivery for factory-ordered EVs.

Laws and loopholes. Unlike abroad, the US currently has laws preventing direct auto sales. Companies like Tesla have found a loophole in the regulations by having US-based showrooms where customers place orders for cars that are then delivered from overseas. It is not clear if automakers will seek to move forward with direct sales or how they intend to try, but a recent statement by Ford CEO Jim Farley seems to indicate the company is betting on dealers for the long haul.

Telling it like it is - We want to be very clear: We believe franchise automotive retail dealerships are the best way to sell & deliver cars and serve communities across the US. Yes, we are talking to you all OEMs!

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