Pub. 18 2019-2020 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 2 , 2 0 1 9 24 new jersey auto retailer The PlugStar Program Prepares Dealers to Sell More EVs BY ERIC CAHILL Electric Vehicles (EVs) – cars that feature a plug – continue to grow in popular- ity across the United States. While sales of conventional gasoline-electric hybrids have waned in recent years with historically low gas prices, EVs have surpassed hybrids in California, securing nearly 8% of all new ve- hicle sales by the latest figures. Gains aren’t limited to California. New York witnessed a 56% year-over-year ( YOY ) growth in EV sales from 2017 to 2018, though this rep- resents a little over 1.5% of new vehicles sold statewide. New Jersey similarly witnessed a more than 83%YOY increase representing 1.6% of new vehicles sold in the state. 1 As more manufacturers like GM see a pathway to profitability within a generation or two at most, more are ramping up marketing efforts to defend market share from new players and to reclaim the mantle of leadership in technology and fuel efficiency. More automakers also acknowledge the need to better prepare their dealer networks to sell EVs. Selling EVs is not as simple as it may sound. Unlike past automotive advancements, EVs are, to borrow a term from high-tech marketing, a disruptive product. Think about what it was like twenty years ago for customers considering a switch to an Apple Macintosh computer from a Windows- based PC. The decision was fraught with weighty considerations for would- be Apple buyers. Apple machines cost substantially more, had different keyboard and mouse interfaces, and worked with far fewer software titles – including many essential for office work. Similarly, EVs are fundamentally different in that they involve an entirely new fueling experience and reliance on an emerging but underdeveloped charging and support infrastructure. For car buyers, the switch to EVs requires significant adaptation and faith that the supporting infrastructure will come. EVs have also witnessed the emergence of a diverse set of increasingly vocal EV advocates encouraging more people to consider EVs. Typically, EVs appeal first to the most risk-tolerant of customers. Many of these early buyers are well-educated, well-informed and skeptical of uninformed dealers. They are going to be offended by sales staff that try to steer them away from an EV and into a gas-powered vehicle. As automakers introduce more EVs to their line-up, dealers must gear up to sell and service them. Higher up-front cost and worries over range, battery life and charging availability must be overcome to close a sale. Neighborhood new car dealerships are the lynchpin that can ignite excitement around EVs. The right training, tools and support is critical to sell this next generation of high- tech vehicles. Dealers need to know the right information to share with their customers. Factory training can help, but training typically focuses on positioning the offering against competing models. What it often lacks is needed messaging around the many benefits that EVs deliver as a particular category of vehicle and as a lifestyle choice. Examples include the various subsidies that lower up-front cost and the convenience of charging at home. NJ CAR Electric Vehicle Sales Certification NJ CAR has stepped in to fill the void, partnering with Plug In America, ChargEVC and the New Jersey Department of Environmental Protection ( NJDEP ) to create a voluntary EV certification program for New Jersey dealerships and sales staff. The program not only includes EV-specific sales training, it also provides comprehensive support and other resources, enabling dealers to take control and implement practical steps to sell EVs more efficiently while addressing the specific needs of EV customers. This includes helping the customer select the right charging equipment, identifying a qualified electrical installer, choosing an appropriate utility rate plan and estimating costs to charge at home and on-the-go. The program also provides dealers with printed collateral, an easy-to-use mobile-friendly web app, and toll-free hotline support for EV customers and dealer sales staff to answer questions, close the sale and satisfy customers. PlugStar complements OEM training by delivering category-specific training with an emphasis on the local EV support system. It equips sales staff with effective messages, online resources and expert support to help EV customers navigate myriad government and utility incentives, charging, and equipment installation to make the switch to electric driving easier. PlugStar.com serves as a training aid to dealers. It also converts engaged consumers into actual customer leads for accredited dealers. The PlugStar program is unique because it was designed by dealers for dealers.