What Dealerships Need to Know
The automotive industry recently experienced a significant event, with two of America’s leading automakers, Ford and General Motors (GM), striking deals with Tesla to use its expansive and reliable charging network. This has vast implications not only for these automotive giants but also for auto dealerships across the country. As the EV landscape evolves, it’s vital for dealerships to understand these shifts and adapt their strategies accordingly.
Tesla’s Charging Network Expansion: The Details
Tesla, led by CEO Elon Musk, announced its deals with Ford and GM within the last two weeks. The arrangements, which establish Tesla’s charging model as the standard among the largest American automakers, are projected to bring in as much as $3 billion by 2030, according to Piper Sandler & Co. This shift could pressure competitors to abandon the primary competing standard, the Combined Charging System (CCS), in favor of Tesla’s North American Charging Standard (NACS).
These changes impact more than just the big players. Other charging network providers like EVgo and ChargePoint saw their shares fall following the announcement, indicative of the significant shift in the EV charging landscape. Additionally, other automakers may soon feel the pressure to join the Tesla charging consortium to remain competitive.
Impact on Auto Dealerships
Dealerships selling Ford, GM, and potentially other EVs in the future stand at an interesting juncture. On the one hand, this shift towards Tesla’s charging standard brings benefits, including expanded charging accessibility for their customers. With Tesla’s Supercharger network renowned for its reliability, this move could increase the attractiveness of these brands’ EVs to prospective buyers.
On the other hand, dealerships may face challenges during the transition, especially in terms of communicating these changes to customers. Adapting to a new charging standard might require additional investments, like Tesla-specific charging adapters for customers, adding another layer of complexity to the EV selling process.
How Dealerships Can Adapt Their Advertising Strategy
In light of these developments, it’s crucial for dealerships to revise their marketing messages. Advertising campaigns should highlight the expanded charging accessibility offered by Tesla’s extensive Supercharger network and the increased reliability this brings to their EVs.
Moreover, dealerships can turn these changes into selling points. By emphasizing the fact that Tesla, the leader in the EV market, is backing their charging infrastructure, dealerships can create a sense of confidence in their EV offerings. It’s important, however, to communicate these messages clearly to avoid any customer confusion during the transition.
How The Automotive Advertising Agency Can Help
At The Automotive Advertising Agency, we understand how industry changes can affect your dealership. We have extensive experience in helping dealerships navigate through transitions and incorporating these changes into their advertising strategies.
Our team can assist you in updating your marketing campaigns to reflect the new charging arrangements, making sure your customers understand the benefits of these changes. We will work closely with you to create an effective communication strategy that not only informs your customers about the shift to Tesla’s charging network but also promotes the value of your EV offerings.
The recent deals between Ford, GM, and Tesla represent a significant milestone in the EV industry. For auto dealerships, these changes could bring both opportunities and challenges. But with the right advertising strategy, dealerships can leverage these developments to their advantage. As always, The Automotive Advertising Agency stands ready to help dealerships adjust and thrive amidst these industry changes. Contact us today to guide you through this new chapter in the automotive world.