Mercedes Readies First Tesla Rival in $12B Attack

Re:Mercedes Readies First Tesla Rival in $12B Attack by prostoalex on Tuesday September 04, 2018 @01:54PM (#17911203)

Wall Street historically has preferred manufacturers to concentrate on R&D and manufacturing.

Manufacturers with large offline presence would have inflated staff numbers, higher labor costs, massive real estate presence and are harder to operate in case of a downturn.

Having some well-resourced locals willing to take up those risks seemed like a win-win at the time.

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Re:Mercedes Readies First Tesla Rival in $12B Attack by craftyguy on Tuesday September 04, 2018 @05:09PM (#17912833)

I can understand why we got here, but I don't understand why there are any reasons why we must stay, other than to keep dealers in business.

You don't need a real estate agent to buy a home. Do they make it easier for some folks? Yes, but you definitely pay for that convenience. You always have the option of doing it yourself (again, which saves a lot of money). Buying a car should be the same way. If you need help selecting a car (or whatever it is that dealers do), pay extra for the service. For everyone else, buying direct from the manufacturer makes more sense.

[ Parent | on HN ]

Re:Mercedes Readies First Tesla Rival in $12B Attack by prostoalex on Tuesday September 04, 2018 @05:22PM (#17912928)

I'd imagine the "selling" operation of the dealership is insignificant, at least the new cars department.

Trade-ins, used cars, service and maintenance are the margin drivers.

If you go through TrueCar, or any of their white-labeled sites (Costco Auto, Amex Cars, Overstock Cars), you're more or less buying direct.

[ Parent | on HN ]