ending. Kristen Balasia, VP of Consulting Services at S&P Global, says choices among commercially available EVs have already grown exponentially. It now looks like the U.S. EV market will be much bigger by the decade’s end and that the mainstream brands will be making about 90% of EVs by 2030. The government is pushing EVs hard. The budget for national EV charging networks is $5 billion. An executive order signed by President Biden mandates 100% zero-emissions vehicle acquisitions. The deadline for that is 2035. Many people want the entire U.S. to be carbon neutral by 2050. How fast will the transition be? Most new car owners keep their vehicles for about six years because they want to keep up-to-date with the latest features, but in June 2021, the average length of ownership had extended to 11.9 years. That makes sense; the cost of a new vehicle is high, loans take years to repay, and it’s a smart strategy to continue driving what you have until the need for repairs changes your mind. Dealers can expect to provide conventional auto services for at least another decade, but the balance in 10 years will still have shifted dramatically. That’s why dealers who want to continue selling vehicles will want to transition to selling EVs. Then they can position their dealerships for tomorrow’s EV customers. The good news is that you have time. But don’t wait to get started; a lot of preparation will need to occur. What needs to happen? First is training, education and infrastructure investment. You will want EV buyers to view your dealership as a place that has EV experts and offers them important resources, even though you will continue to service conventional gas-engine vehicles. It would be smart to hire an EV expert who can answer questions for customers. The expert should know as much as someone at any store using the direct-sales model, including knowing which benefits are available and which ones stack. Federal, state, local or utility incentives are all potentially available. Talk to an electrician and the local electricity supplier; you will need more electricity and more electrical infrastructure, so find out what that means in specific terms. You may need new transformers and electrical equipment. Investing in charging stations is also a good idea, as well as thinking about what you need to do to provide service for EVs. Charging stations are expensive, but they will get used even if you only install one or two at a time. Put at least one in the service area. If a technician is working on an EV, the technician can charge the vehicle while it is being serviced. Little things make a big impact on customers. You may need to upgrade tools and machinery so that everything is compatible. That’s a challenge, certainly, but be strategic Dealers can expect to provide conventional auto services for at least another decade, but the balance in 10 years will still have shifted dramatically. Continued on page 32 Issue 2, 2022 31 WVADA
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