As this newsletter is being delivered, the ADS leadership team will be at NADA in Las Vegas. This year’s show is sure to be jammed packed with great meetings, time with some of our valued dealer clients, as well as meeting many new dealers interested in improving their F&I sales process and results.
It was two years ago when NADA was last in Las Vegas. During that show, EV’s were ALL the rage! There was so much talk and hype about EV’s and the demise of the ICE vehicles. It was the FUTURE, or that is what they wanted you to believe.
At that time, we published an article on our skepticism of the prognosticators certainty around the adoption rate of the BEV’s. This was met with some negativity when it came out, but we must remember that two years ago there were months’ worth of backorders for anything electric, so it was only fair to receive some criticism over our cautionary approach.
Now here we are entering another industry event and another manufacturer (Volvo) just pulled back funding on their EV program – much to the pleasure of Wall Street, as their stock surged 20% on the news.
So how did we go from all the rage to a mere footnote in just two years? Is it because the demand was artificial, the talking head CEOs were making statements to appease their investor base, or have we now had two years of real world experience to prove out a lot of the concerns we pointed out. Most likely, it is a combination of all the above.
Let’s be clear, there is a place for EV’s and there is some demand for them, but it is not NEAR what we were being led to believe. The EV market will continue to grow and may even see some significant growth (due to its relatively small market share currently), but the ICE based vehicles that have powered this country for over a century, may just be around for another century…
We hope everyone has a tremendous NADA show.
Events we will be attending:
NADA 2024 – https://www.nada.org/nada-show
Cleveland Auto Show – https://www.clevelandautoshow.com/
Good luck and Good Selling!
Sincerely,
Bob and Ryan
