Dealers vs. Change: The Truth About VW, Scout, and the EV Road Ahead — From an Insider | Fred Emich IV, Partner at Emich Automotive
About this episode
Fred Emich IV, a partner at Emich Automotive and chairman of the VW National Dealer Council, shares insights on the evolving automotive landscape, particularly regarding electric vehicles (EVs) and the challenges faced by traditional dealerships. He discusses the impact of VW's transition post-Dieselgate, the return of the Scout brand, and the strategies his dealership employs to thrive in a competitive market. Emich highlights the importance of community involvement, dealer relationships, and the need for VW to improve product quality and dealer support amidst changing consumer preferences.
World Challenge
"...at the time Volkswagen had some pretty good contingency money in the in world challenge. So we built out a car to chase some money..."
World Challenge is a racing series where different types of cars compete against each other on tracks. It's a way for car makers to show how fast and good their cars are.
World Challenge is a professional auto racing series that features multiple classes of cars competing on road courses. It provides a platform for manufacturers to showcase their performance vehicles and is known for its competitive racing environment.
Volkswagen
"...where Volkswagen was at where the the Kia location is currently at..."
Volkswagen is a car company from Germany that makes many popular cars, like the Beetle and Golf. They are known for their quality and engineering.
Volkswagen is a German automaker known for producing a wide range of vehicles, including the iconic Beetle and the Golf. The brand is recognized for its engineering and innovation in the automotive industry.
Kia
"...where the the Kia location is currently at..."
Kia is a car company from South Korea that makes a range of vehicles. They are known for being affordable and offering good warranties.
Kia is a South Korean automotive manufacturer that produces a variety of vehicles, known for their affordability and warranty offerings. They have gained popularity for their stylish designs and value for money.
letter of intent
"And at that point we actually had a letter of intent with Kia... So it on paper was gonna work out just great."
A letter of intent is a document that shows two parties are interested in making a deal. It helps to outline what they plan to do before they finalize the agreement.
A letter of intent is a document outlining the preliminary understanding between parties who intend to enter into a contract. It is often used in business transactions to clarify intentions before final agreements are made.
EV dealer
"In September we were the number one ev dealer in the nation..."
An EV dealer is a car dealership that sells electric cars. These cars run on electricity instead of gasoline, which helps reduce pollution.
An EV dealer specializes in selling electric vehicles (EVs), which are cars powered entirely by electric energy rather than traditional gasoline or diesel. The rise of EV dealers reflects the growing demand for environmentally friendly transportation options.
tax credit
"...we have a great tax credit..."
A tax credit is money the government gives back to you when you pay your taxes. For electric cars, it helps lower the price you pay for the car.
A tax credit is a financial incentive provided by the government that reduces the amount of tax owed. In the context of electric vehicles, tax credits can encourage consumers to purchase EVs by lowering their overall cost.
global warming
"...where they realize that global warming is a real thing..."
Global warming is when the Earth's temperature gets hotter over time because of things people do, like burning fossil fuels. This can cause problems for the environment and weather patterns.
Global warming refers to the long-term increase in Earth's average surface temperature due to human activities, particularly the emission of greenhouse gases. It is a significant environmental issue that impacts climate patterns and ecosystems.
EV driving technology
"I really promote ev driving technology and Whether you're doing it for performance whether you're doing it to save money whether you're doing it for the environment"
EV driving technology is what makes electric cars work. It includes things like batteries and electric motors that help the car move without using gasoline.
EV driving technology refers to the systems and components that enable electric vehicles (EVs) to operate, including electric motors, batteries, and regenerative braking systems. This technology is crucial for improving vehicle performance and efficiency.
internal combustion vehicle
"to drive an ev versus a internal combustion vehicle with that"
An internal combustion vehicle is a car that runs on gasoline or diesel. It uses an engine that burns fuel to make the car move, unlike electric cars that use batteries.
An internal combustion vehicle is a type of vehicle that uses an internal combustion engine (ICE) to convert fuel into mechanical energy. This includes most traditional cars that run on gasoline or diesel.
TDI scandal
"Really 2015 with Volkswagen going through the tdi scandal"
The TDI scandal was a big problem for Volkswagen because they were caught cheating on tests that measured how much pollution their diesel cars produced. This caused a lot of trouble for the company.
The TDI scandal refers to the controversy surrounding Volkswagen's use of software to cheat on emissions tests for their diesel vehicles. This scandal led to significant legal and financial repercussions for the company and raised awareness about environmental regulations.
Tesla
"we weren't the first to market, but we were close to first to market beyond, you know, tesla"
Tesla is a car company that makes electric cars. They are known for their high-tech features and have helped make electric cars more popular.
Tesla is an American electric vehicle manufacturer known for its innovative technology and high-performance electric cars. The company has played a significant role in popularizing electric vehicles and advancing EV technology.
EV infrastructure
"And with that, you know, there's some very early investments into ev infrastructure. So we do have two public Chargers that'll do 125 kilowatts at our vw location"
EV infrastructure means the places where electric cars can charge their batteries. It's important because without enough charging stations, people might hesitate to buy electric cars.
EV infrastructure refers to the network of charging stations and related facilities that support electric vehicles (EVs). This infrastructure is crucial for the widespread adoption of EVs, as it provides the necessary charging capabilities for drivers.
kilowatt
"...two public Chargers that'll do 125 kilowatts at our vw location..."
A kilowatt is a way to measure how much electricity something uses or provides. For chargers, a higher number means they can charge electric cars faster.
A kilowatt (kW) is a unit of power equal to 1,000 watts. In the context of electric vehicle chargers, it indicates how much power the charger can deliver to the vehicle, affecting how quickly the vehicle can be charged.
public chargers
"...two public Chargers that'll do 125 kilowatts at our vw location..."
Public chargers are places where anyone can plug in their electric car to charge it. You can find them in many public areas like malls or parking lots.
Public chargers are charging stations for electric vehicles that are accessible to the general public. They are typically found in parking lots, shopping centers, and other public areas, allowing EV owners to charge their vehicles away from home.
EVs
"How specialized you need to be as a dealer to successfully retail evs at high volume... I think there's a combination of things"
EVs stand for electric vehicles, which are cars that run on electricity instead of gasoline. They are often seen as better for the environment because they produce fewer emissions.
EVs, or electric vehicles, are cars that are powered entirely or partially by electricity instead of gasoline or diesel. They are becoming increasingly popular due to their environmental benefits and lower operating costs compared to traditional vehicles.
pricing affordability
"Put the price low enough. You'll be the number one ev retailer in the country. What is it?"
Pricing affordability means how affordable a product is for people to buy. If a car is priced low enough, more people can afford it, which can lead to higher sales.
Pricing affordability refers to the ability of consumers to purchase a product based on its price relative to their income and budget. In the context of EVs, setting a competitive price can significantly influence sales volume.
EV
"...that's continued to support the EV business..."
EV means electric vehicle, which is a car that runs on electricity instead of gas.
EV stands for electric vehicle, which is a type of vehicle that is powered entirely or partially by electricity instead of traditional gasoline or diesel fuel.
Chevrolet
"...with our Chevy and vw business now..."
Chevrolet, or Chevy, is a popular car brand in the United States that makes many types of vehicles, including electric cars.
Chevrolet, commonly referred to as Chevy, is an American automobile brand known for its wide range of vehicles, including trucks, SUVs, and electric models.
no haggle pricing
"Sometimes you know haggle negotiation or no haggle pricing. What are you? No, I'd say like we're no hassle..."
No haggle pricing means the price you see is the price you pay, with no room for negotiation. It makes buying a car easier because you don’t have to bargain with the salesperson.
No haggle pricing refers to a sales strategy where the price of a vehicle is fixed and non-negotiable, eliminating the traditional back-and-forth negotiation process. This approach is designed to simplify the buying experience for customers, making it more straightforward and less stressful.
comps
"If they want a couple thousand dollars off the price of the car... show them comps and and and sell the value in the vehicle"
Comps are similar cars that help show how much a car should cost. Salespeople use them to explain why their car is priced a certain way.
In the context of car sales, 'comps' refers to comparable vehicles that are used as benchmarks to justify the pricing of a specific car. Salespeople often show these comps to demonstrate that their pricing is in line with the market value of similar vehicles.
battery repairs
"Part of that has to do with you know, we have seen some repairs some battery repairs same with kia as well"
Battery repairs are when you fix or replace the battery in an electric car. This can be expensive because batteries are complicated and important for the car's performance.
Battery repairs refer to the maintenance or replacement of the battery in electric vehicles (EVs) or hybrid vehicles. These repairs can be costly due to the complexity and technology involved in modern battery systems.
traction law
"...we get weather. There's a traction law as well. So if you want to go up to the mountain..."
A traction law means that drivers must use special tires or chains when the weather is bad, like during snowstorms, to help keep their cars safe on the road.
A traction law is a regulation that requires vehicles to have specific equipment, such as snow tires or chains, during certain weather conditions to ensure safe driving. This is particularly important in mountainous or snowy areas.
snow tires
"...that helps us sell some snow tires and make sure they got enough tread on their tires..."
Snow tires are special tires made to help cars grip the road better when it's cold and snowy. They are different from regular tires and work best in winter weather.
Snow tires, also known as winter tires, are specially designed to provide better traction and handling in cold, snowy, and icy conditions. They have a unique tread pattern and rubber composition that remains flexible in low temperatures.
tread
"...make sure they got enough tread on their tires..."
Tread is the rubber part of a tire that touches the ground. It's important because it helps the car grip the road, especially when it's wet or snowy.
Tread refers to the part of a tire that makes contact with the road. The depth and condition of the tread are crucial for providing traction and handling, especially in adverse weather conditions.
RO
"...when you do arrive your ro is higher..."
RO means 'repair order', which is a paper that shows what work was done on your car when you take it to a dealership for service.
RO stands for 'repair order', which is a document that outlines the services performed on a vehicle during a visit to the dealership. It typically includes details about the work done, parts used, and costs involved.
over-the-air updates
"...struggled with the over-the-air updates..."
Over-the-air updates let car companies fix or improve your car's software without you having to go to a shop. They can send updates directly to your car through the internet.
Over-the-air updates refer to the ability to wirelessly update a vehicle's software without needing to visit a dealership. This technology allows manufacturers to fix bugs, improve performance, and add new features remotely.
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