Petrol station transitioning

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Nagaman
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Petrol station transitioning

Post by Nagaman »

I feel sorry for those who actually own their outlet and perhaps aren’t aware of the shocks that will be felt before much longer if the EV transition continues the accelerating trend.
They might actually own/paying off their site but many are going to end up as high rise accommodation particularly in the inner city areas.
I’ve seen sites aerating for years due to soil contamination so it isn’t to be assumed that they are sitting on a massively valuable asset.
The smarties have already worked out that there isn’t enough in it to continue selling pollutants and have flogged them off. I’m not sure if putting chargers in is either affordable let alone profitable for those now/still holding the cards.
I’m just glad my family aren’t exposed to this painful transition period.
Nagaman
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Re: Petrol station transitioning

Post by Nagaman »

With the ending of the tailpipe in the mega cities of Europe and Asia, in particular, over the next decade, I imagine Ford’s intention to establish an independent EV model of direct sales, in the Tesla mould, will eventually see a lot of extremely valuable inner city dealership land also be redeveloped. Many manufacturers say that they will keep their dealership model intact, but competing on price with those who have eliminated the dealership margins will be some task I expect.
It’s appears inevitable that clean energy is going to be both exciting and somewhat of a shock for many.
drlizau
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Re: Petrol station transitioning

Post by drlizau »

In the last two years we have had 2 new diesel/petrol selling places built, and none recommissioned into anything else. There is also a DA for a truckstop approved. A truckstop with refuelling, food and showers would be an asset. There are no plans for EV charging other than the 2 Tesla destination chargers near the Visitors Centre. However, there is a growing numbers of EVs seen here. One of the dealers has already sold 3 Konas and has had a lot of interest in the demo vehicle.
There is a lot of head_in_sand behaviour over fuel prices and the arrival of EV ascendency.
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Nagaman
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Re: Petrol station transitioning

Post by Nagaman »

drlizau wrote: Sun, 08 May 2022, 16:38 In the last two years we have had 2 new diesel/petrol selling places built, and none recommissioned into anything else. There is also a DA for a truckstop approved. A truckstop with refuelling, food and showers would be an asset. There are no plans for EV charging other than the 2 Tesla destination chargers near the Visitors Centre. However, there is a growing numbers of EVs seen here. One of the dealers has already sold 3 Konas and has had a lot of interest in the demo vehicle.
There is a lot of head_in_sand behaviour over fuel prices and the arrival of EV ascendency.
The lack of (EV) supply from brands such as Hyundai and KIA is down to them all being loss makers.
I recall recently a published tabulated list of manufacturers by FACTORY profit margin per ICE unit that left the gates.
Mercedes was reasonably (expectedly?) the most profitable …but Hyundai made only ~ $75/unit ON ICE VEHICLES !
They can’t afford to supply the demand for their EV’s because they lose so much money on them. (German IP fees and 7 year warranties?)
There’s going to be a lot of blood on the floor over the next decade of fundamental change.
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brunohill
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Re: Petrol station transitioning

Post by brunohill »

"FACTORIES" rarely make profits. You never know when you could apply for government help. It is always the sales departments that make the profits. Salesman can even get a bonus for selling lots of stock at a loss and then blame the factory for the loss and get away with it.
Nagaman
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Re: Petrol station transitioning

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brunohill wrote: Mon, 09 May 2022, 10:41 "FACTORIES" rarely make profits. You never know when you could apply for government help. It is always the sales departments that make the profits. Salesman can even get a bonus for selling lots of stock at a loss and then blame the factory for the loss and get away with it.
As I understand it, the dealerships, owned by the dealer principal(s), ‘buy’ the vehicle at the factory price and then make what they can from it’s sale (normally the manufacturers RECOMMENDED retail price) .
When there is a run-out deal it’s subsided by the factory, The 7 year factory warranties are effectively an encouragement to owners to continue the maintenance revenue stream to the dealer at factory expense. No wonder they don’t want indies from accessing their programs……it’s Brand Power that really matters.
There’s an ongoing love/hate relationship between the shareholder owned factory and the privately owned dealership principals.
The dealerships model works for high maintenance ICE but definitely now they represent a margins loading that Tesla, and now apparently Ford also, don’t/won’t be saddled with.
There is massive unavoidable change upon us…….in my opinion.

(an interesting clip from a UK site quoting Lord Sugar, the multi segment business man, complaining about workers not going back into the office but instead continuing to work from home. Apparently his son runs the commercial realty company and this trend has been disastrous for rental income……a floor space glut. Add that to the dealerships and fuel servo glut. Ordinary franchise shops, shopping centres and banks are dying on the online alter)……. https://youtu.be/BNM7N2m3ypA
Nagaman
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Re: Petrol station transitioning

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drlizau
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Re: Petrol station transitioning

Post by drlizau »

I see that the proposed plan is to sell used ICE vehicles so that they can sell "service" and "parts".
So no change overall, just a refocus on something a bit cheaper with a plan to sell a higher number to achieve the same amount of profit. No new ideas, really.
2017 Leaf 30kWh battery
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brendon_m
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Re: Petrol station transitioning

Post by brendon_m »

Head on the sand approach. Won't be able to sell new cars so just sell more 2nd hand ones.
Question being how do they all sell more 2nd hand cars? You can't just say you'll sell more, there needs to be supply (which will slowly dwindle), demand (also will dwindle)and limited competition (which will increase as more dealers grasp at straws)
Nagaman
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Re: Petrol station transitioning

Post by Nagaman »

The legacy manufacturers are facing the prospect of transitioning whilst cutting off a leg.
The debt levels are another black cloud hanging over them.
Enthusiasm is the biggest task.
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