While largely welcomed by franchised dealers, the federal government’s rapid pivot on U.S. electric vehicle policy nevertheless is creating disruptive waves in the auto industry that retailers will have to manage over the coming months and years.
Some of the uncertainties dealers are now grappling with include near-term issues like how many new EVs to keep stocked on their lots between now and Sept. 30, when the $7,500 federal tax credit for EV buyers expires or which EV nameplates at what volume to order after that subsidy ends. Then there are longer-term issues: How will the major disruption to automaker product development plans affect their operations when product cycles stretch out, creating a notable slowdown in the introduction of both fresh EV and combustion-engine vehicles? And will there be more policy whiplash in four years when a new presidential administration is installed?