Pros and cons of Fisker's, Tesla's dealership plans
Both Fisker Automotive and Tesla Motors are bringing electric-powered luxury sedans and convertibles to market, but each is going about it in entirely different ways. Fisker's strategy, steered by former BMW and Volvo sales director Vic Doolan, is to license independent dealerships – some of the biggest in the country – to sell their premium green automobiles on their behalf. Tesla's approach, on the other hand, is to set up factory-owned stores which the company likens to Apple stores.Each approach, of course, has its benefits and drawbacks. For Fisker, makers of the Karma sedan and upcoming Karma Sunset convertible, selling through existing dealers promises to streamline the process and tap into professionals already savvy to the local market and capable of dealing with customer service and the exchange of used cars. Tesla, on the other hand, which makes the Roadster (pictured right at the company's LA store) and upcoming Model S, wants to more directly manage the sales and service process with its own retail outlets, but that comes at the cost of rapid expansion: so far Tesla's only got stores in California, though additional locations are planned for Chicago, New York, Seattle and Washington, London and more.
Gallery: Tesla Motors Menlo Park Store
[Source: Automotive News – subs. req'd]
Reader Comments (Page 1 of 1)
Throwback 2:59PM (4/28/2009)
Tesla, should realize by now selling AND servicing a car is not like bringing in your laptop for some software. After sale service is where you keep you customers happy. Will Tesla have loaners available? Will they have Saturday service hours? Will they pick up the car and deliver it? These are all services high end car buyers are accustomed to. Fisker is correct to partner with luxury car dealers who know their clients and what their clients expect. Does anyone at Tesla have experience with luxury car sales?
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Woodenbee 3:08PM (4/28/2009)
I think farming out important functions to alleged "professionals" with "experience" has proved so fantastically disastrous for every entity that has does it I would have serious reservations about it, as a company and as a potential client. Boeing is in the process of imploding thanks to this notion of loaning your chickens to the foxes, its just not smart. I think Tesla has it right, I'd want to see what kind of dealer Fisker is talking about partnering with, what they'll end up with is a bunch of used car salesmen giving all their hard won buyers a miserable time, safe in the knowledge they can go back to selling other brands when they've helped Fisker fail. Giving salesmen anything to do is a risky proposition, they are only motivated by making the deal, nothing else matters to these guys, I wouldnt trust a new technology to them, most of them have a mid century mentality at best
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Throwback 4:15PM (4/28/2009)
Seems to work for BMW, Lexus, Mercedes, Ferrari etc.
Eli-PDX 3:38PM (4/28/2009)
Here in Portland Oregon, Fisker will be handled by Ron Tonkin Gran Turismo. They already sell Ferrari and Maserati (the oldest Ferrari dealership in the U.S.). While I appreciate the concept of company owned and operated stores, I hardly think that Fisker's approach is flawed. Indeed, I believe that the Fisker will be sold here in green PDX alongside other low volume premium brands LONG before we have a dedicated Tesla store, and the customers will be well served.
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Throwback 4:17PM (4/28/2009)
It certainly works for BMW, Lexus, Mercedes, Ferrari etc.
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jake 4:30PM (4/28/2009)
The Tesla approach is relatively unproven so we'll see I guess. I don't think any automaker has used their approach. It definitely is okay for low volume but it might not be able to handle higher volumes. They may have to go back to the traditional approach in the future. Right now it makes sense to have their own stores since they can afford it with the margins they get on the car and they probably want to keep the servicing to themselves, since it is still new technology. It just gives them more control.
The Fisker method is proven to work so they have little risk. The only thing is they have to ensure those dealers know how to service the vehicle and maybe they might lose some money to the dealers, though they might end up saving some by not having to build a store and by having a much more expansive dealer network. If they pick good dealerships the salespeople shouldn't be an issue.
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Woodenbee 5:29PM (4/28/2009)
well you all seem to have faith in Fiskers approach, if servicing and finding flexible competent sales people are overcome then they have a chance, BMW ferrari etc have been doing this a while whereas Fisker might just be a lamb to the slaughter for these guys. Maybe things have got to where the only guy you can half trust is a car salesman?? scary, I think Tesla can make it work, buying one of theirs is an event, people will be happy to travel to a dealer, it'll be part of the fun, they don't want to be anything like GM with a dealer in every township, well actually one day I hope they do, when theyre selling cheap EV's that anyone can afford and traffic pollution can be another chapter in our shameful past, along with hunting, guns, war for oil/profit, too big to succeed corporations, GM food, abuse of public lands, torture, overpaid CEO's, for profit healthcare, homelessness, corrupt single party domination, lobbyists, mega churches, SUV's, pickups, and all the other evils of the conservative agenda that need to be eliminated.
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lens 12:12AM (4/29/2009)
Talk about counting chickens a bit early. Tesla has sold a few hundred cars and Fiskar has sold NONE! Where does the blog's comment "....makers of the Karma sedan and *upcoming* Karma Sunset..." come from? Can anyone get a sedan? No. Neither of these care exist in any real way. It would be stupid for Tesla to court a network of dealers when they can't make that many cars anyway. How many locations do they need to take deposits for 100 cars a month? Also, given that every new car I've had was fine until dealer service touched it, I as a customer, would favor Tesla's approach.
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jim 9:09AM (4/29/2009)
The Tesla approach is riskier for the consumer. If the company were to go belly up the dealer channel would disappear including repair/support facilities. Additionally there would be no organized party who could arrange for the continued manufacture and availability of parts.
The advantage for the consumer in Tesla's approach is consistency throughout the supply chain. As long as they are in business.
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nick 10:33PM (4/29/2009)
Risky move by Tesla, which is going to drive up their costs. They will have to move a ton of cars to support the staffing and building costs, Fisker on the other hand, will only need to do well enough with the dealership to pay for their lot space. I guess Tesla can get a higher profit margin with a vertically integrated company, but managing such organizations is always difficult.
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