I don't work in an automotive factory, but everyone I've asked about process engineering and factory tooling, has told me the opposite, that it is in fact quite expensive, both in capital and time, to retool.
>huge networks of dealers and service centers, which means that customers who value reliability and/or stress-free repairs are more likely to buy a BigCo car
It could be that I've simply had a completely different experience from you, but I've never really heard anyone I know say that the dealer experience was stress free or that the repairs made at dealers were reliable. In fact, almost everyone I know who is knowledgable about cars stays away from dealer service centers like the plague.
For some context I drive a 17 year old Civic that I mostly work on myself, although I do take it to a trustworthy independent shop for bigger repairs.
I actually think the current dealer network as well as the current private car ownership system might prove to be the biggest risks for the established players.
> I don't work in an automotive factory, but everyone I've asked about process engineering and factory tooling, has told me the opposite, that it is in fact quite expensive, both in capital and time, to retool.
But it's certainly way cheaper and faster than to build a new factory like Tesla will have to do, which is what I wanted to say.
> It could be that I've simply had a completely different experience from you, but I've never really heard anyone I know say that the dealer experience was stress free or that the repairs made at dealers were reliable.
Different country maybe - I'm German. We don't have the kinds of issues the US has.
Thanks for responding and clarifying some points. I agree that from what I've heard Germany doesn't suffer the same kind of problems the US does in regards to the dealer experience.
Not to pile on here, but I think this is one of the things that many Europeans underestimate with regards to Tesla in the US market. If Tesla can continue to sidestep the traditional dealer franchise network, and their lobbying efforts, while scaling, I think this could be one of their biggest advantages going against the established auto companies. Unless you've been subjected to it first hand I think it's difficult to understand just how awful the US dealer experience is. From what I've heard the transparency of the Tesla buying experience is a consistent selling point.
> If Tesla can continue to sidestep the traditional dealer franchise network
The problem is: a Tesla is radically different from any other car. You need specialized knowledge (especially in HV distribution) to properly repair it, and most likely also ultra-special tools, and from what I've heard (eg https://forums.tesla.com/forum/forums/replacement-parts-why-...) spare parts are extremely hard to come by, even for official Tesla shops.
So basically you need a massive network of official shops and dealers in order to assure the customers that their damaged/broken car is going to get fixed... and that's where BigCar has an advantage: all they need to do is to train one or two employees at each existing shop/dealer in how to service/repair an electric car, and they have the entire country serviced. Tesla on the other hand has to build the stores, hire and train personnel on their own... and that's a significant hit on capex.
I don't work in an automotive factory, but everyone I've asked about process engineering and factory tooling, has told me the opposite, that it is in fact quite expensive, both in capital and time, to retool.
>huge networks of dealers and service centers, which means that customers who value reliability and/or stress-free repairs are more likely to buy a BigCo car
It could be that I've simply had a completely different experience from you, but I've never really heard anyone I know say that the dealer experience was stress free or that the repairs made at dealers were reliable. In fact, almost everyone I know who is knowledgable about cars stays away from dealer service centers like the plague.
For some context I drive a 17 year old Civic that I mostly work on myself, although I do take it to a trustworthy independent shop for bigger repairs.
I actually think the current dealer network as well as the current private car ownership system might prove to be the biggest risks for the established players.