EVs and the future - 2019 Honda Insight Forum
 
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post #1 of 5 (permalink) Old 10-28-2019, 01:12 PM Thread Starter
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EVs and the future

I purchased my 2019 EX in late June of 2018. Very pleased, but I know that Honda (and every other car company) sees hybrid technology as temporary and they are investing heavily in EV technology. Dealerships don't like EV technology and they will continue to sell IC (internal combustion) cars for a long time. The reason has to do with where their profits come from. According to Edmonds, 49.6% of dealership profits come from the service and parts department. This will start to decrease dramatically when the EV market starts taking off. On the TESLA site it says a TESLA needs "no traditional oil changes, fuel filters, spark plug replacements or emission checks. As electric cars, even brake pad replacements are rare because regenerative braking returns energy to the battery, significantly reducing wear on brakes." I've read somewhere that on average a modern IC engine requires replacement of about 140 parts over the course of its 250,000-300,000 mile lifetime. An electric motor requires basically zero maintenance over the same period.

What's your take on all this?

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post #2 of 5 (permalink) Old 10-28-2019, 01:43 PM
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It'll interesting to see the transition. As dealerships would be less dependent on Service departments for profits in the future. As you get away from the standard dealership model, changes will have to be made, the question is, how do they change a multi-billion dollar a year industry, into something else. We all know service departments are very lucrative operations, and I'm sure Manufacturers will build the car to still have some maintenance reliance. Things like suspension components, steering, etc, would still need service, and EV's are at the moment, great at destroying tires. Computer errors, electronic glitches etc, for at least now would require specialized tools to access and repair, until the car computer can Diagnose and repair on it's own.

There are some positive trade offs as well, fixing cars with a scan tool, vs specialized knowledge of ICE. The service industry will adapt and overcome as it has in the past. The service departments have already survived major innovations to the ICE. Whether we are talking about materials, and tolerance specs, to software and computer based systems.

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post #3 of 5 (permalink) Old 10-28-2019, 04:26 PM
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I have the impression that a new service model is already afoot...

Some examples include needing to replace the full headlight assembly versus individual bulbs and initial 'troubleshooting' recommendations like replacing the full rack and pinion assembly for electrical issues.

There's huge margin on parts (e.g. $1k per headlight assembly) and arguably the dealership can just increase the cost of labor as parts like these get more integrated and complex to install/replace.
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post #4 of 5 (permalink) Old 10-28-2019, 05:45 PM
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Quote:
Originally Posted by insightfully View Post
I have the impression that a new service model is already afoot...

Some examples include needing to replace the full headlight assembly versus individual bulbs and initial 'troubleshooting' recommendations like replacing the full rack and pinion assembly for electrical issues.

There's huge margin on parts (e.g. $1k per headlight assembly) and arguably the dealership can just increase the cost of labor as parts like these get more integrated and complex to install/replace.
Not to mention anything they can deem as proprietary technology, like calibration of sensors. These calibrations have almost no "parts cost" but a large labor bill. Even if they license out these services, they still gain something financially, for no actual cost besides r&d of the process.

2019 Insight EX, Aegean Blue (Owned by my someday wife)
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Retired Professional Car Audio Competitor. Avid knowledge buff, always researching something.
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post #5 of 5 (permalink) Old 10-28-2019, 06:08 PM
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Originally Posted by Wifey'sInsight View Post
Not to mention anything they can deem as proprietary technology, like calibration of sensors. These calibrations have almost no "parts cost" but a large labor bill. Even if they license out these services, they still gain something financially, for no actual cost besides r&d of the process.
So true... I forgot about that one! Windshield replacement now requiring OEM glass, potentially requiring calibration of radar and camera at the dealership, and costing 5x more than non-OEM glass.

I don't think Honda service will be going out of business any time soon...
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