![]() ![]() So why does Big Auto think this will actually work this time? cutting the middle man is what that is called. Inventories sit at the manufacturer rather than at the dealer and more importantly the manufacturer will have direct communication and financial transactions with the end client. National sales companies will see their roles reduced to administrative hubs. The dealership becomes an experience center and the physical tentacle of a digital sales journey. ![]() So what exactly is this agency model? Simply put, in an agency model the manufacturer will reduce the role of the dealer to a demo and delivery point. But we have never witnessed such a big shift towards a new distribution set-up. Many manufacturers have a history of agency management in specific territories with different level of success. Of course this concept of an agency model is not new. Stellantis, Volkswagen Group, BMW, Mercedes, … every self-respecting manufacturer with deep enough pockets seems to have cancelled its dealer agreements and has launched its agency model offensive. Obviously it was not enough to keep all car maker executives busy as the big buzz word over the last few weeks has really become the “agency model”. Electrification, spiking commodity and energy prices, a shortage in micro-chips, … and of course the consequences of dramatic situation in Ukraine. Times have been busy in automotive world lately. What's likely going on here is that Tesla is on track to build quite a few more vehicles in 2018 than it did in 2017 and will have to expand its logistical footprint to get those cars from Fremont to the rest of the US.Agency model. The company flatly denied that this was the case, and CEO Elon Musk took to Twitter to say that 5,000 new Model 3 orders had been logged in the past week. Speculation has developed that Tesla is experiencing cancellations of Model 3 pre-orders, which were reportedly in excess of 400,000. Target $TSLA: Episode Three ("My God, It's Full of Cars!")Īerials of the facility identified earlier today at 500 E Louise Ave, Lathrop, CA.more to come, but I didn't want to make people wait any longer to see the big picture. There are around 3,000 Ford and Lincoln dealers in the US, and on any given day and by a rough calculation, probably something like 170,000 F-150s awaiting customers (Ford sells more than 2,000 every day, has an 80-plus-day-supply on hand, and sold close to 900,000 F-Series pickups last year). And there's usually a lot of pickups on those lots. If you want to buy, say, a Ford F-150 pickup truck, you will probably head down to your local dealer to see what's in the lot. Getting a Tesla is far more bespoke than what a lot of car buyers are used to: you order a car, Tesla builds it or you select something out of inventory, and when it's ready to pick up, they let you know. Tesla doesn't have a dealer network, just stores located around the US. Tesla has limited space at its factory in Fremont, CA, so the vehicles have to go someplace. Tesla is producing at least 2,000 more cars per week than it was at the end of 2017, now that Model 3 assembly has ramped up. "As our deliveries increase, we’re obviously going to have more cars there." "We use Lathrop as a loading hub for cars being shipped to other locations for delivery to customers," a Tesla spokesperson said in a statement to Business Insider. These look to be staging areas, where cars are collected before they are sent to other parts of the country. What looks to be a few thousand Teslas are allegedly in the Central Valley town of Lathrop, east of the Bay Area and in Burbank, near Los Angeles. ![]()
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