DaveGillChevrolet:AnIndependentDealerPivotsTowardEVSales

At a time when being a single-point automotive dealership became challenging, Dave Gill Chevrolet focused on electric vehicle (EV) sales and became one of the more successful EV niche dealerships in the nation. In 2018, Dave Gill Chevrolet sold more new Chevy Bolts and Volts than any other Chevy dealer in the state of Ohio, accounting for more than 10 percent of all sales.

In 2011, when the Chevy Volt was released, car manufacturers where producing fewer cars due to the recession, and many dealerships were moving to suburban or rural areas. Matt Ringlien, pre-owned vehicle sales manager of Dave Gill Chevrolet, says the dealership decided to pivot and make an investment in marketing EVs.

“We became really interested in the Chevy Volt back then because it was something different and we saw it as an opportunity, given our urban-based location here in the city,” Ringlien says.

The staff of family-owned Dave Gill Chevrolet thought the Volt was a perfect EV for city dwellers and started to understand the profile of consumers shopping for EVs. Even owner Nancy Gill started driving the Volt.

“The customer base that was coming for a car like the Volt at the time, and now the Bolt, are very well-informed consumers who generally don't care for the traditional dealership experience,” Ringlien says. Dave Gill Chevrolet began developing a unique strategy to spread the word about EVs to early adopters in the region. Currently, the dealership is the top seller of Chevy EVs in Ohio, even though it’s one of the smallest dealerships in the state.

“We were trying to find a unique identifier in the market that we're in. EVs and the customers they attract seem to suit our perspectives on how the modern retail experience can be,” Ringlien says.

Financial model for the dealership
The Chevy Volt launched Dave Gill’s Chevrolet’s pivot into focusing on EV sales, but Ringlien admits that it has been a challenge ensuring that the diversity of inventory matches the local demand.

“For this market, in this part of the country, the Bolt is not part of GM’s ‘turn and earn’ inventory allocation system. Generally the more cars you sell, the more GM will send you. Not with the Bolt. Our local reps have worked hard to get us additional inventory when they can, but if you want to have a lot of EVs on the ground, you just have to buy them from other dealers, which is costly to do,” Ringlien says.

In 2017, Smart Columbus counted 69 EVs available for sale on dealership lots in Columbus, and less than half of all EV models available in the market were available in the region. Because Ohio offers no state-level incentives for the sale of zero-emission vehicles, Ringlien says that it’s up to the dealership to stay in tune with supply and demand.

“The economics on those EV sales aren't what it would be if we got cars from the factory directly. The east and west coast markets are that way, they sell a bunch of EVs and the manufacturers send them a bunch back. But not in this part of the country. I'd say in the last two or three years, it's all been about inventory,” Ringlien says.

But Dave Gill and their peers in the market are helping to drive a shift in supply in the Columbus market. At the end of 2018, 263 EVs were on dealership lots in Columbus, and 61 percent of EV models were available in the region.

Dave Gill Chevrolet was part of the inaugural class of Electrified Dealers certified through Smart Columbus in 2018. The program equips dealerships with the latest training on EVs and aligns them with collateral and marketing campaigns created by Smart Columbus. Electrified Dealers also receive contact information from people who are interested in EVs from Smart Columbus Ride & Drives and want to talk to a dealer. 

Currently, 27 dealerships are a part of the program, representing about one-third of dealerships in the region. 

“The number one thing that has helped us leverage the dealership in the community and the region is when Smart Columbus approached us,” Ringlien says. “The Ride & Drive Roadshow was just starting and we heard how Smart Columbus was going to have all these different EVs at all the big companies in town.”

Understanding the EV consumer
Car buyers spend 13 hours, on average, researching their purchase online. Ringlien says that most consumers interested in EVs are very educated about the vehicle and the store’s sales staff has to be equally prepared. He says that the sales cycle for EV buyers is often longer because buyers are doing a lot more research and visit dealerships more than once before making a purchase. 

“You have to get your head around the fact that this is probably going to be a different sales visit than the traditional one. Customers are generally more analytical and less impulsive with their decision-making process,” Ringlien says.

The typical dealership experience can be off-putting for EV shoppers because they expect sales people to be highly engaged and knowledgeable about EV culture. Unfortunately, Ringlien says that many dealerships have not pivoted their sales strategies to understand EVs and their customers.

“We’ve heard many stories about early adopters going to other dealerships and the sales people not even knowing where the EVs are. They don't know anything about EVs and they don't seem to care,” Ringlien says. “There's just no buy-in from the dealership standpoint for a variety of reasons that are completely reasonable given how niche of a product EVs are for now. They may already have a successful business model based on other models.”

Ringlien says he believes that EV shoppers represent the future of all car buyers—those who have done their research and want a more holistic, less sales-heavy experience.

“We often will let people take our cars for a couple days at a time to experience what it's like with an EV—how it could fit into their lifestyle. We tell them to plug it in at work, put it through your daily paces and see how it works. This type of car is a big change, philosophically, for most people,” Ringlien says.

The future for EV sales
GM discontinued the Chevy Volt in early 2019, and Ringlien says the Chevy Bolt is a quickly becoming a replacement.

“The Volt was a great vehicle. It's really what started it all and it was a really great stepping stone car into the EV world. We are sad that car is gone because we did really well it,” Ringlien says. “Because the Bolt is full battery electric, you’re two-feet into the EV lifestyle. So, it will be an adjustment for some buyers.”

As GM reaches its cap for the full federal EV tax incentive, and consumers are now eligible for a $3,750 rebate, rather than $7,500, and as talks of extending the credits are still being debated by policymakers, Ringlien says the relationship with Smart Columbus, along with a promise of more EV models in the near future, will continue to grow his business. 

“Smart Columbus couldn't have come a better time for us, as we're trying to really grow the EV part of our business,” Ringlien says. 

Analysts estimate that EVs will be 38 percent of all new cars purchased in the U.S. by 2025, and automakers have been preparing to phase out internal combustion engine vehicles in preparation for the future market. In the meantime, Ringlien says Dave Gill Chevrolet will be ramping up its used EVs and continuing to focus on service and fostering relationships to grow its name as an EV sales leader in the Midwest.

“Internal combustion cars are going to be around for a long, long time. But for us, our own little family business here in metropolitan Columbus, we know the long-term future of the business is going to be based on EVs,” Ringlien says.