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Dealers Are Turning Away EV Inventory: Report

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Kunes noted that automakers are asking dealers to make a significant investment in EVs and the dealers want to see a return on their investment. EV sales are starting to plateau as the demand from early adopters has seemingly been satisfied. The conversations in showrooms are now not just about higher prices but about the lifestyle changes tied to electric vehicles.

Even EVs Can’t Get A Break From The Heat

Photo: David Paul Morris/Bloomberg (Getty Images)

Insider reports that some dealers don’t want new electric vehicle deliveries. Scott Kunes, the chief operating officer of Kunes Auto and RV Group told the website that his company has “turned away EV inventory.” The dealers have pointed to a lack of demand for less-than-affluent customers. The wave of early adopters willing to spend to get their hands on an electric vehicle has faded, but cost-conscious consumers are apprehensive about making the transition.

America’s major manufacturers have made it clear that electric vehicles haven’t been as profitable as hoped. Ford has stated they expected to lose $4.5 billion on their electric vehicle divisions this year. Detroit’s automakers knew that they were going to lose money in these early years of production, just not that much money. Now, dealers are refusing EV deliveries to avoid having cars they can’t move off their lots.

The Ford Motor Co. Mustang Mach-E electric sports utility vehicle (SUV) for sale at a dealership in Colma, California, U.S., on Wednesday, June 30, 2021.

While manufacturers will continue to produce EVs at or near announced levels to appease investors, it will be down to the dealers actually to find a way to reliably sell them to customers.

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