Automotive News - September 21, 2020 - Best Practices Supplement - S18

18 | SEPTEMBER 21, 2020
N I E L L O C O . , S A C R A M E N T O , C A L I F.

Training helps clear the EV hurdles
Calif. group's sales staff
learns how to make pitch
to anxious customers
Published in Automotive News March 9, 2020

Pete Bigelow

pbigelow@crain.com

errick Niello got a glimpse at the electric vehicle future earlier than most of
his counterparts.
As controller at Niello Co. in Sacramento, Calif., he has watched the nine brands
represented by the dealership group add a
growing assortment of EV models. What started
seven years ago with BMW's i3 has transformed
into a full-fledged influx of electric offerings
from the likes of Jaguar, Land Rover, Volvo, Audi, Volkswagen and Porsche.
Niello wants to be at the forefront of getting
those vehicles into customers' hands. He understands that expanding inventory is only half the
battle.
"We see what's going on
in the U.S. and all over the
world now, and we think
of ourselves as a progressive organization in that
Niello: "Adding
respect," he said. "But
resources"
frankly, there are friction
points that involve OEM incentives making it
more difficult compared to traditional internal-combustion options. And more importantly, there's the affordability piece of it and
range anxiety."

Explaining powertrains, charging
Solving those problems will remove the biggest barriers in the way of a fast-paced adoption of electrification, and Niello has been
working to address them. Last year, several of
the dealerships under his purview enrolled in
a training course on how to sell EVs.
Since 2016, Plug In America, an advocacy
group that provides information on EVs, has
offered its PlugStar dealer training program to
more than 100 dealerships in select U.S. cities.
Program participants have sold four times as
many EVs as their nontrained counterparts,
according to the group.
Sales staff receive guidance on how to best explain electric powertrains - but that's only a
starting point. Information for new EV owners
often extends to explaining how they might need

Niello Co. dealership group participates in a program run by advocacy group Plug In America.
With model choices proliferating,
Niello Co. wanted to tackle barriers to
electric vehicle adoption, such as
range anxiety. It turned to a sales
training program from advocacy group
Plug In America.

to rewire their garages for charging and that
maintenance schedules no longer revolve
around oil changes.
Seventy percent of customers surveyed at
participating dealerships said they were "very
satisfied" with their sales experience, compared with 35 percent at nonparticipating
dealerships.
Niello Co. sold more than 12,000 new and
used vehicles in 2019. Niello says EV sales, as a
percentage of the group's overall sales, are in
the "mid-single digits." With an ever-expanding list of electric options and a location at the
epicenter of fledgling EV sales, he sees the
PlugStar program as a means to ensure his
customers stay happy.
"This is really adding resources for customers and adding value at the point of contact
about why EVs might be a good option," Niello
said. "It's helped us overcome price or range
anxieties and maybe make it easier to have
customers look at EVs as realistic options. The
feedback we've gotten from our sales team
has been overwhelmingly positive."
Plug In America, founded in 2008, focuses
on government policy and public outreach for
EV education. Early on, Executive Director Jo-

el Levin says, the organization identified dealerships as a "chokepoint" for EV sales.
Fifty-four percent of dealers in a 2019 Cox
Automotive survey said they see a lower return on investment for sales of EVs compared
with gasoline-powered cars. Further, a third of
dealers said the lack of marketing support
from automakers and poor sales training contributed to their challenge.
PlugStar has been attempting to fill that
void. "We know this is of value because dealers are coming back to us and wanting more
training," said Program Director Eric Cahill.
"They're willing to pay for it because we've
given them the tools and support they need.
That's a big piece of it."

Incentive for sales team
In February, Plug In America introduced an
online course that encompasses much of the
same training it has offered in person.
After undergoing training, sales staff can receive financial incentives from Plug In America to work with the program, receiving a bonus for EV sales when the dealership submits
paperwork.
That's an easy incentive, Niello says, to utilize the program. But there are deeper reasons
to participate.
"Really, the ROI for us at this point is a little
intangible," he said. "It's about our customers.
We want to say that we're forward-thinking
and that we want to be a provider of clean
technology and that we help them make a decision that's best for their driving needs. Fundamentally, that's been the real benefit." a

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