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EV buyers not exactly happy with dealership experience

If Tesla Motors chief Elon Musk was an I-told-you-so type of guy, here's his chance to do so. It turns out that plug-in vehicle buyers are generally less satisfied with their dealership experience than conventional-vehicle buyers. And the dealers themselves don't like the process much, either. So says a study from the University of California, Davis. The report cited 43 interviews with automakers and dealers that sell in California as well as the JD Power 2013 Sales Satisfaction Index. The study found customer-satisfaction scores to be "much lower" for plug-in vehicle buyers than others. Maybe that's because the dealers themselves are less patient and find that selling plug-ins are more time-consuming, labor-intensive and stressful. And that's just getting the car out the door. More complications arise when dealing with the federal tax incentives issue. Of course, Tesla scored well, relative to the other dealerships. And all that gives more credence to the company's insistence on selling its vehicles directly to customers and without a third-party dealership network. Representatives of some of these dealership groups have been lobbying against the prospect of Tesla getting direct-sales rights. Michigan is the latest battleground between Tesla and pro-dealership entities. See below for an abstract on the UC Davis report and then read more here. New Car Dealers and Retail Innovation in California's Plug-In Electric Vehicle Market Abstract: Innovative new products like plug-in electric vehicles may need new approaches to market and sell them. We conducted 43 interviews with automakers and dealers selling plug-in vehicles in California's major metro markets and analyzed data on customer satisfaction with new car dealers and Tesla stores. Initial findings revealed: • Plug-in vehicle buyers rated the dealer purchase experience much lower than conventional vehicle buyers while Tesla earned industry-high scores; • Plug-in vehicles returned higher gross profits but place greater demands on dealers, including the provision of support services beyond traditional offerings; • New retail approaches undertaken by 'dealer innovators', including new methods for building and scaling dealer competence, could improve the PEV buying experience; an • Public incentives could better align with established dealer practices and business drivers to improve program effectiveness.

Tesla now California's top automotive employer

Tesla has knocked off Toyota as the biggest auto employer in the state of California, employing over 6,000 people to the Japanese company's 5,300. That lead is only likely to grow, as the EV manufacturer prepares to add another 500 jobs by the end of the year, and as Toyota begins its relocation to its new North American headquarters in Texas. The news comes barely a week after the company announced a $50 million loss during the first quarter of 2014.
Tesla's statewide employment could be set to double, beyond even 6,500 people, if it follows through on rumors to construct its eagerly awaited gigafactory in the Golden State. The $5-billion venture could add another 6,500 employees, making Tesla not just the largest automotive employer in the state, but making it one of the largest employers in the state full stop.
The investment of Tesla and its founder (and real-life Tony Stark), Elon Musk, has been substantial. The company has added 3,000 employees in the state since 2013, reopening the Toyota and General Motors joint-venture factory that use to be known as NUMMI in 2009 and constructing a design studio in Los Angeles, all in addition to its Palo Alto headquarters.

Recharge Wrap-up: Tesla hiring new sales executives, A123 focuses on starter batteries

A123 Systems is shifting more of its focus to lithium-ion starter batteries for cars with stop-start systems. The company sees the smaller batteries as a safer, more viable way to bounce back from its recent bankruptcy than by providing battery packs to power EVs. A123 still provides EV batteries to China, and hopes to provide them to Fisker, which is now owned by a mutual parent company, Wanxiang. A123's Detroit facility is currently building starter batteries for Mercedes-Benz, with microhybrid battery production expected in within the next few years. Read more at Automotive News. Tesla Motors Vice President of Worldwide Sales and Service Jerome Guillen is being reassigned to a role in customer satisfaction. After struggling sales in California and China, Tesla is also seeking sales executives for its three major sales regions: North America, Europe and Asia. "Once they are on board, Jerome's focus will be on post- sales activity from delivery to long-term customer care, where he has done an incredible job," says Tesla. For 2014, North America made up about 55 percent of Tesla's sales, while Europe and Asia made up 30 and 15 percent, respectively. Tesla expects those numbers to eventually be distributed evenly, and aims to increase sales by 74 percent this year. Read more at Automotive News. David Noland of Green Car Reports wants Tesla to address a double-pedal problem in the Model S. Noland says that when both the accelerator and brake pedal are pressed at the same time, it can increase the stopping distance, creating unsafe situations. Noland, along with other drivers with large feet, are having problems with this due to the narrow spacing between the pedals. Elon Musk has stated that the Model S limits torque in a double-pedal situation, but Noland's own tests find some inconsistencies. Noland would like to see a change to the firmware to address this problem. Read more at Green Car Reports. Featured Gallery Tesla Model S View 10 Photos Related Gallery 2012 Fisker Karma: Second Drive View 30 Photos News Source: Automotive News, Automotive News, Green Car ReportsImage Credit: Tesla Motors Green Fisker Tesla Green Automakers Safety Electric recharge wrapup