#SalesStrategy

The latest from Detroit has General Motors considering tweaking its delivery strategy for electric vehicles. While this appears to tangentially fall into the industry trend of trying to shove EVs into an online sales model, GM’s plan is distinctive and would introduce centralized inventory lots for the 2022 Chevrolet Bolt ( hatchback and EUV) before Christmas. But we can already see the dual-sized nature of the plan that will be used to promote and condemn it, should things move forward.

General Motors could be seen as throwing dealerships a bone by finding a way for those located in areas where EV buyers are less prevalent to provide their customers with electrified options. This saves them from having to prep their lots for charging and making space for vehicles people might not bother buying until the technology has further matured. However, with industry giants (including GM) vowing to continue making more of their lineup battery-powered, dealers might also view this as a coy way for the manufacturer to obtain more control over retail operations. Other manufacturers have already explained that they want to prioritize online sales of electric automobiles, with the end result likely mimicking the Tesla sales model … something that doesn’t include traditional dealerships.

General Motors intends to launch a digital retail tool aimed at facilitating electric vehicle sales. However, this does not appear to represent a total shift away from the traditional dealer model — even if it technically furthers that cause.

While EVs have grown in popularity, they’re still a niche segment and perhaps not suited to the needs of all customers. That makes it risky to stock your showroom with them, depending on the geography. So we’ve seen multiple manufacturers embrace online sales and the flexibility that offers the manufacturer as a way to get around this. Some companies, like Tesla, even prioritize direct sales models above the alternative — and we’re seeing brands like Volvo beginning to do the same. GM said it would be using Tekion (founded by Tesla and Oracle bigwig Jay Vijayan) to help it sell EVs over the internet.

Domestic automakers are enamored with the full-sized pickup segment because it’s a reliable way of securing hundreds of thousands of sales in North America on an annual basis. Here, Ford’s F-Series reigns supreme. That might not always be the case, however, especially with younger buyers opting to purchase their pickups at competing brands.

Last month, Edmunds released a study claiming Ram is leading the charge with buyers under 35 — saying the brand had won over “the most coveted section of the market.”

August saw Tesla Motors slashing prices on practically everything that wasn’t the Model 3. The automaker has a history of endless shifting trims and pricing, and the most recent round of changes focused entirely on top-spec versions of the Model S and Model X. Earlier this month, base-model MSRPs received a haircut.

Assumedly, the automaker wants to move its existing inventory while production of the Model 3 progresses towards the coveted 500,000-units-per-year mark. Yet that ambitious goal is still miles away.

Tesla has been hesitant when it comes to providing sales figures and, while it has begun releasing delivery numbers on a quarterly basis, making monthly estimations is extremely difficult. The automaker said it hit its target of 47,000 units for the first half of 2017 but also referenced a “severe production shortfall” that hindered sales during the second quarter. It plans to make up the difference through the rest of the year and the pricing shift is likely to play a factor.

How much are you saving, exactly, if you buy a Tesla now?

The Ford Ranger is poised to return to the domestic market in 2019, accompanied by all the fanfare befitting a junior American icon. Unless the Blue Oval totally botches the job, everyone anticipates the reborn Ranger becoming a big seller in the midsize truck market.

However, there’s already a smaller pickup syphoning off volume from its rivals before the Ranger can avail itself. While sales of most midsize truck models have been cooled by the gentle breeze of market stagnation, Honda’s second-generation Ridgeline has returned with a vengeance, enjoying favorable reviews and posting sales volume not witnessed in over a decade. While Honda still doesn’t move nearly as much midsized metal as Toyota’s Tacoma (which sold 191,631 units in the U.S. in 2016), the Ridgeline proves there is space in the marketplace for more than just body-on-frame offerings.

Since 2009, Hyundai’s North American volume has seen record sales every single year. While the last few annual assessments haven’t resulted in the same volume boom as the immediate post-recession years, the company hasn’t seen any shrinkage — despite below-average incentive spending and a lineup that doesn’t exactly sync with the region’s evolving automotive tastes. Hyundai dealers are probably singing the brand’s praises and getting its logo tattooed on their staff then, right?

Not quite. While Hyundai has achieved nearly a decade of growth in the Wild West, dealers are growing increasingly disappointed with its tactics and are less than enthused about future business prospects — especially as it doesn’t appear Hyundai has any interest in scaling back car volume for the sake of SUV sales.

In fact, while both the Hyundai Elantra and Sonata remain higher-volume models, both have undergone a noticeable delivery decrease since 2012. Meanwhile, sales of utility vehicles like the Santa Fe and Tucson have nearly doubled in the same timeframe. Hyundai put 62,817 Tucson SUVs onto North American roads in 2012, and that figure rose to 113,502 last year. It could have been more, had the company been better at supplying those vehicles.

Maybe it’s not the product, but the dealerships? It might not be the solution to all of the problems facing an increasingly less troubled Mitsubishi north of the border, but it can’t hurt.

Under a new five-year plan, the automaker plans to revamp and modernize all of its 90 Canadian dealers. Bright, glassy and inviting, the redesigned dealerships are worth the expense if it helps draw more buyers into a customer base that hasn’t grown much in years.

Volkswagen of America has a new head honcho in charge of product and marketing, and he’ll have his work cut out for him.

Today, Volkswagen named Dr. Hendrik Muth as the new vice-president of product marketing and strategy for its beleaguered U.S. division. His job? To sell vehicles. Ideally, lots of them.

It’s D-Day, so what better time to dish details on Cadillac’s secretive Project Pinnacle?

The luxury automaker plans to completely revamp how its dealers interact with customers — a strategy that even changes how its salespeople dress, according to a draft document obtained by Automotive News.

Under Project Pinnacle — the brainchild of brand president Johan de Nysschen — U.S. dealers will be grouped into five tiers based on expected sales. When the operation kicks off on October 1, car shoppers can expect a higher-end experience at their local Caddy dealership. Get ready to be coddled.