Many auto dealers — and this editorial space — have been rightly skeptical of electric vehicles and their long-term effects on dealership operations and profitability. One gesture in the right direction: General Motors’ request to its dealers last month for help in expanding the nation’s limited charging infrastructure by distributing charging stations throughout their local communities. Dealers should take full advantage of the opportunity.
The automaker promised to work with its dealers in the U.S. and Canada to establish a network of 40,000 EV chargers over the next four years. The Level 2 chargers — tagged with the automaker’s Ultium battery brand — will be open to any EV, not just GM vehicles. Dealerships that participate would receive up to 10 chargers to distribute within their communities starting early next year, part of GM’s $750 million commitment toward charging infrastructure through 2025.
Dealers should use the chargers as an extension of their business and especially their branding. And they should also be mindful of the opportunity for their communities. Beyond ensuring that chargers are installed in convenient, safe locations, they should consider areas that otherwise may be underserved by traditional for-profit businesses.
The chargers may say Ultium, but their installation location can carry dealership branding. Marking chargers installed at local schools, police and fire stations, and shopping centers with an “installed courtesy of” badge will put the dealership front and center with each use.
Limited charging infrastructure is one of the primary barriers to broader consumer EV adoption, and it will continue to be that way until chargers are as ubiquitous as refueling stations.
Savvy dealers will jump at the chance to support sales long term and help their communities — many of which are charging deserts. GM says participating dealers will be able to choose whether to offer the charging for free, for a subsidized price or for a profit. A new profit stream would be nice, but that may be outweighed by the benefits of community relations. As more consumers begin to consider buying and owning an EV, dealers known for providing charging options will be top of mind.