No easy solution to EV charger installation, dealers say

Installing electric vehicle chargers at dealerships is proving to be complicated and costly.

There are problems with utilities and city planning departments. There are different types and numbers of chargers to install. Dealers are finding there is no one-size-fits-all solution.

"The more we dig into this whole shift, it's becoming more and more apparent that it's not cheap. And it's complicated. And it's time-consuming," said Rinaldi Halim, president of Sierra Automotive Group, which has six stores selling Chrysler, Dodge, Jeep, Ram, Subaru, Honda and Chevrolet vehicles in Los Angeles and Monrovia, Calif.

While dealers have extensive experience with facility upgrades, the technical nature of installing chargers at commercial scale is often beyond their expertise. Depending on the age of the building, the proximity and capacity of their current transformer and other factors, dealers must develop custom solutions to meet their brands' requirements.

With some exceptions, most automakers have outlined EV plans that require dealers to install various numbers of Level 2 and Level 3 chargers at their stores over the next few years.

Dealers are spending $400,000 to $750,000 to install infrastructure for Level 3 chargers — the fastest type, which takes 15 to 20 minutes to refill most of an EV's charge. They are adding transformers, switchgears and panels, a process that typically involves drilling through parking lot pavement or even through a public road or alley, consultants and dealers said. Dealers are often learning about construction needs as they go.

"It's coming down the pike so fast — all these EV requirements. Everybody is on a learning curve," said Casey Griffin, president at Logan Asset Management, which helps auto retailers plan upgrades.

Finding the right vendors and the right solutions is "like putting a puzzle together blindfolded," said Kent Ritchey, president of Landers Auto Group, which has eight stores near Memphis, Tenn.

The process is a balancing act, Halim said. "We want to partner with our OEMs and our government officials and our communities to help accomplish the goal of having a clean planet for future generations," he said. "But it's a little more complicated because each OEM has different programs … and preferred vendors and consultants."

Ford Motor Co., for instance, has different requirements for different certification tiers. Model e Certified Elite dealers need five Level 2 chargers by 2024 and they need to add another by 2026. They also need three of the expensive Level 3 chargers by that time. Model e Certified dealers need six Level 2 chargers and one Level 3 by 2026.

Cadillac, GMC and Chevrolet dealers require only one or two Level 3 chargers and one to three Level 2 chargers for now, but General Motors expects medium and large dealers will exceed those numbers based on future EV volume, spokesperson Michelle Malcho said.

Lexus requires all dealers to install chargers and recommends four Level 2 chargers and one Level 3 charger.

Toyota recommends that dealers in zero-emission vehicle states such as California install three Level 2 chargers: one for the service department, one for new-vehicle deliveries and one for customers to use. The automaker recommends that dealers in non-ZEV states install one Level 2 charger in service or in the customer-facing area. Level 2 chargers also would support Toyota's plug-in hybrid vehicles.

Toyota and Lexus said the timing of dealer installation varies based on permitting, charging and electrical equipment availability and work with utility companies.

Sorting through automaker requirements to land on a single cost-effective solution has worn down dealers that sell multiple brands, said Edmund Reinhard, a partner at Crowe, which provides audit, tax, advisory and consulting services to dealers. Retailers want to work with one company but often can't when each automaker has a different preferred vendor, he said.

Dealers must coordinate with the local power company, the automaker, the automaker's preferred vendors for EV chargers and a certified installer. This alone can take as long as nine months, Reinhard said. Then dealers often have to wait for electric components to become available.

Expanding power supply to facilitate charging is another complication.

When Hudson Automotive Group inquired about obtaining enough electricity to support Level 3 chargers at two stores in Tennessee, the local power company said that would require the same amount of power as a small hospital.

"The answer has been, 'We'll evaluate it and get back to you.' And we're still waiting to hear back from some of these municipalities, the power companies, with how much power they can supply," said David Hudson, president of the group, which has 49 rooftops across Ohio, Tennessee, North Carolina, South Carolina, Alabama, Georgia, Kentucky and Louisiana.

Local electricity distribution capability affects charging infrastructure, said Kellen Schefter, director of electric transportation for Edison Electric Institute, which represents investor-owned electric companies. If there is already a lot of commercial activity in an area, dealers may need a line extension. But where distribution falls short, a longer-term project would be necessary, he said.

Halim, of Sierra Automotive, expects he will have to dig up a public road to run new lines and conduits for the Level 3 chargers at his stores in Southern California, which will require coordination with local municipalities.

Dealers have grown accustomed to updating their stores to comply with automakers' image programs, but EV charger installation is more complex.

"You have a lot less say over it because it's so city-intensive," said Howard Drake, dealer principal of Casa Automotive Group, which sells Cadillac, Buick, GMC and Subaru brands in Sherman Oaks, Calif. "There are very limited places where you get switchgears, and it's all dependent on the city approving it and then coming out and inspecting."

A shortage of transformers and other critical electric components driven by supply chain and work force issues lengthens the process, Schefter said.

Dealers and consultants who spoke with Automotive News said wait times spanned three months to two years.

In rare cases, dealerships will not meet the standard and ask the automaker for an exception that still allows them to participate in the EV program, said Justin Halstead, vice president of eMobility and electrical infrastructure at ABM, which works with dealers to install EV charging infrastructure.

Nicole Antakli, chief business officer and general manager of charge infrastructure at Charge Enterprises, which coordinates charger installations for dealerships, said a local utility company told one of its dealer clients that it would not approve additional power supply until the dealership made electrical upgrades at its facility that was built in the early 1970s.

In nearly every case, there is a solution that would power the EV chargers automakers require, such as on-site battery storage, Halstead and Antakli said.

After meeting the initial standard, most dealers are considering the charger requirements of the future, rather than just fulfilling automakers' short-term standards.

ABM often adds a conduit at dealerships to simplify future changes, Halstead said.

"If you have to tear your parking lot up to run a conduit out, you don't want to have to do that again in a couple years," he said.

Dealers are thoughtful about the transition to EVs, Antakli said. They want to preserve their normal flow of business while ensuring they can serve their customers as EVs begin to scale.

As a whole, dealers are one of the first groups to install large quantities of Level 3 chargers, Antakli said.

"They really are the first movers, and they are highly encouraged and required to pay for it," she said. "They have been challenged with an exceptional burden. Being able to execute in a responsible way for consumers is huge … but doing it in a very short time frame is not easy."