The Incredible Shrinking Car Dealership

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The way people buy automobiles is changing—so Honda and other manufacturers are adapting in kind.

—which the automaker says will account for 100 percent of sales by 2030—will be sold exclusively online.Mike Anderson, Rikess Groupthem easier, too. Building cars to fulfill customers’ online orders takes some guesswork out of vehicle production, meaning fewer unexpectedly unpopular models end up languishing—and eventually selling at a discount—on showroom floors.

It could take years or even decades for dealerships to change physically because it takes time and money to retrofit a building. Diallo, the Honda executive, says the automakers’ new dealership design “is not a program we are forcing dealers to adopt,” but a direction Honda wants its dealers to follow as they renovate and make updates. Volkswagen of America network operation vice president Brian Kelly says the automaker is considering similar adaptations.

Big shifts in how cars function also presage changes at the dealership. Inspired by Tesla, more automakers are building software-enabled cars that can be serviced or updated over the air. The US government wants electric vehicles to account for 40 percent of auto sales by 2030, and California—the country’s biggest car market—intends to ban gas-powered vehicles sales by 2035. But electric cars have fewer moving parts and need to be serviced less often than their gas-powered counterparts.

 

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Divisive.

The most irrelevant 4 sentence article I read.

Toyota Miray? H2

Good riddance. I vote get rid of them altogether and lower the price for the consumer by cutting out the middle man.

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