GM is making moves to transition to all-electric power, with one recent study indicating that GM may capture more EV market share than Tesla by 2025. However, in the meantime, Tesla customers are coming to GM for vehicle service, as indicated by recent statements made by GM President Mark Reuss.
Tesla Model S
During the recent GM investor’s day presentation held November 17th, Reuss said that GM dealers “took repair orders on vehicles whose make or model was listed as Tesla” 11,180 times since last year.
“That’s a new business, which is great,” Reuss said. “Those customers brought their vehicles to us for service because they know and we know we have the expertise to fix them. They know that we have the customer service experience that they also want and they know we have the service bays and the dealerships in place.”
In addition, Reuss indicated that these service expectations are the reason Tesla is now “investing millions to replicate the brick and mortar service centers we already have,” with some of the new Tesla service centers located near existing GM dealers. Reuss also said that 90 percent of the U.S. population lives within 10 miles of a GM dealer.
Per a recent statement from Bank of America Merrill Lynch automotive analyst John Murphy, GM’s EV market share is expected to grow to roughly 15 percent by 2025. By comparison, The General had an EV market share of 0.3 percent during the first quarter of 2022, a figure impacted by the stop-sale of the Chevy Bolt EV and Chevy Bolt EUV, with GM posting a 9.2 percent market share in the first quarter of 2021. Meanwhile, Tesla had a massive 70.9 percent market share during the same time period, according to Cox Automotive.
Chevy Silverado EV
The start of production for the mass-market Chevy Silverado EV is expected to greatly expand GM’s market share going forward, with the new Silverado EV rolling off the line next spring. Additionally, the new Chevy Blazer EV, which will hit production in mid-2023, is expected to grab second place in EV crossover market share.
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Comments
I have been waiting for this story to show up.
This is a genius move. Most Americans live 10 min from a GM service center in most metro areas. Teslas it can be a couple hours away.
The thing with this is not just added dealer income but they will gain experience with EV models as they start to get their own.
Add to things that Tesla has been having a lot more quality issues and what better than to have a disgruntled Tesla owner un your dealer wanting or needing a new car.
GM also can monitor the issues Tesla is having and can learn from them.
Parts are a big profit center for OEMs.and dealers.
Non-warranty service is pure bank for dealers and Elon.
A study says gm will have MORE ev market share than Tesla by 2025. I’ll believe it when I see it!
Mmmm, what are the GM dealers doing for Teslas beyond the basics that any other tire/general mechanical shop can do?
I made this comment several years ago that each GM dealership should install EV chargers at their location. At the time Tesla had E-W traffic covered with their super charger stations, but going far north or south was not filled. GM would had had instant nationwide network. Still can.
Sounds like a smart move on the part of Tesla to use GM dealerships as a stalking horse for future badge conversion to fully branded Tesla service centres prior to the inevitable shakeout in the existing dealer model. The writing is on the wall as car buying goes direct forcing dealers to choose between making a profitable jump to servicing EV vehicles or exiting the business as ICE service revenue declines. As the dealer model crumbles Tesla can slide right in to fill the gap.