Retailers wary of EVs even as electrification charges ahead

If the U.S. auto industry is having a tough time lighting up consumer demand for electric vehicles, it might look within.

Automakers' retail partners often remain uncertain about the transition to EVs — even luxury dealers in areas where EVs have enjoyed the deepest market penetration.

Much of the EV push by automakers is driven by emissions regulations and supported with government subsidies, said David Sloane, chairman of the BMW National Dealer Forum and president of Sloane Automotive Group in suburban Philadelphia.

"While Tesla has demonstrated that there is some demand for EVs, there remain questions about broader consumer adoption," Sloane said. "Concerns about charging infrastructure, convenience and price when compared to gas vehicles will continue to be unknowns."

Dealers also raise alarm bells on pricey electrification-readiness plans being pushed onto retailers by the factory. Cadillac dealers will spend an average of $200,000 per store as General Motors' luxury brand gears up for an EV-only model lineup as early as 2030.

BMW is helping dealers assess their needs in terms of charging infrastructure, but there has been no decision on sharing costs around equipment purchases.

"Financial support would be appreciated," Sloane said. "We have to work together with the factory on figuring out the true forecast on how many of these EVs are projected to be sold and the financial impact on the dealers."