Redefining what it means to be a supercar in an electrified era
Christian Scali
by Christian Scali
As countries around the world move forward with plans to phase out the internal combustion engine, luxury and high-performance brands (Lamborghini, Aston Martin, Rolls-Royce and Bentley, among others) are coming to grips with perhaps the most significant change in automotive history – the conversion to electric vehicles (EVs). This change has aroused feelings of frustration and grief, but also anticipation and excitement in manufacturers, dealers, and customers alike.
For enthusiasts, EVs represents a significant shift in customer preferences that have been central to the identities of high performance and luxury brands. The roar of a combustion engine – often associated with power, performance, and excitement – has long emotionally connected drivers and their vehicles and it is a difficult shift to lose this sensation. To tackle this challenge among enthusiasts, luxury and performance manufacturers are employing technology. Earlier this year, Ferrari filed a patent for a system that reproduces the sounds of an internal combustion engine which can be synced to the acceleration of an EV’s electric motor.
Dealers must be prepared to adopt a multifaceted approach to deal with electrification and identify avenues for new revenue streams. New charging stations to sell and service EVs, high-voltage tools, new diagnostic and safety equipment, and technician and sales associate training must be addressed. EVs generally have drivetrains with fewer components prone to wear and tear, which reduces service and maintenance needs and significantly cuts into a dealer’s service revenue stream.
Scali Rasmussen represents a variety of businesses associated with the automotive industry, especially through this transformative period. The firm’s attorneys regularly work with dealers to maximise EV incentives available from governmental agencies and electric utilities, negotiate EV infrastructure deals with manufacturers to prevent dealers from overpaying, navigate the EV infrastructure build-out process by dealing with building codes and contractors, and protect a dealer’s overall investment from EV revenue changes by negotiating adjustments to capital requirements.
XLNC member firm Scali Rasmussen, PCLos Angeles, CA, USAT: +1 213 239 5622Legal, Corporate Finance
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