The EV transition will require dealer support, experts say

Prices don't sell cars — building relationships and educating customers is what moves vehicles.

And dealerships are in the best position to do this, Jamie Darvish, CEO of DARCARS Automotive Group, said Thursday in a panel discussion on navigating disruption in the automotive retail model at Automotive News Retail Forum: NADA.

The transition to electric vehicles, Tesla's alternative sales model, the expansion of the charging infrastructure and other developments are pushing the retail industry to evolve, panelists said. For example, Darvish's company now employs an electrician who helps customers assess their charging capabilities at home.

Dealers must get their salespeople and managers "over the fear of talking about any of these other technologies out there," Darvish said. "Maybe your managers should be driving [EVs]. Get your salespeople driving [EVs]."

Amid the disruption happening in the automotive retail model, dealers find themselves in a moment where they can reassert their value to automakers, said Mike Stanton, CEO of the National Automobile Dealers Association. And automakers are taking notice: Fisker and VinFast have pivoted from the direct sales model and come to this year's NADA Show looking for dealer partners.

"Every deal is different and every customer is different," Stanton said. For example, "we have had an opportunity to offer different types of financing that a customer could not get on their own."

It is critical automakers take care to offer the right products, said Michael Cottone, president of Volvo's U.S. and Canada regions.

The market in California "is going to be very different than in Chicago or the Midwest," he said. "We have got to make sure that we have the right offerings for the consumers."

Volvo has committed to transition to an all-EV lineup by the early 2030s. And the Swedish automaker has set expectations high, promising to launch seven new electrified models — including five battery-electric vehicles.

But Volvo is not the only brand out there, Stanton said, and it will take time for the markets and infrastructure to catch up to government mandates. Last year, the EPA proposed emissions standards that could lead to EVs making up 67 percent of new light-vehicle sales in the 2032 model year. These expectations are too far, too fast, he said, and they go beyond customer demand.

"We are all-in on the customer and we absolutely have to be," Stanton said. "The customer requires choice."

Automakers going all-in on EVs will need to rely on salespeople on the ground to build customer interest and demand, Darvish said.

"Every automaker needs to make a conscious effort to get all the salespeople in their stores in their product," he said. "It is crazy how many salespeople represent a certain brand and drive a different brand." If they want to sell a model well, "they need to get in the car."