Volvo dealers concerned about EV-only future

A further concern for dealers is the threat low-maintenance EVs pose to their profit engine, the service sector. Parts and service work can generate his 60-80% of the dealer’s total profit.

However, with fewer moving parts that can break, more over-the-air software-based repairability, and less routine maintenance such as brake pads and oil changes, the frequency of EV visits to service lanes is reduced. lower.

McKinsey & Co. estimates that EVs will spend up to 40% less aftermarket when compared to similarly old ICE vehicles.

“How do we recapture the slack in our lost fixed-operate business? What other channels will generate new revenue and reduce costs?” said Norcross, owner of Volvo Cars Memphis, Tennessee. said to

Volvo’s next generation of software-first battery-powered vehicles, including the full-size EX90 crossover, will feature advanced driver assistance technology, lidar sensors and bi-directional charging. This requires costly and time-consuming retraining of front and back operations personnel.

“Brands that are technologically evolving aggressively need to have staff that can train and explain new technology,” Norcross said. ”

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