For car dealers, sustainability is more than just a buzzword; following environmentally friendly practices is good business. It’s an approach that sends a strong positive message to customers and the community, and can ultimately help profitability.
Let’s examine where the “green” movement and today’s dealerships intersect.
The state of automotive sustainability today
To say the auto business is at a crossroads is an understatement. Not only are automakers moving away from ICE-driven offerings, but purchases are also becoming more digitally driven. Dealers are caught in the middle.
At least during the last big industry shift 50 years ago, moving to more fuel-efficient and less polluting vehicles didn’t disrupt the traditional car-buying process.
Forces driving the trend
The push for greater sustainability in the automotive segment comes from various groups, but probably started because of the “Tesla effect.” The electric car maker showed that a compelling electric vehicle didn’t have to come from traditional manufacturers, shifting the “burden” away from conventional transportation options.
And there are other players to consider. Both federal and state governments are actively trying to get consumers to ditch gas pumps for gas stations. The power of the purse (ie incentives and tax breaks) is the biggest influencer.
Of course, consumers also play a role in this movement. In accordance with Pew Research, 67% of Americans believe electric vehicles are better for the environment. At the same time, the majority of millennials and Gen Z adults support ending production of ICE-powered cars by 2035.
How dealerships can embrace sustainability
In addition to the EV charging stations that dealers invariably add, Auto retailers can use other tactics to ride the green wave. These efforts can range from low-cost conservation techniques to more capital-intensive approaches. Examples include:
- Recycling: From beverage containers to paper products, collecting and recycling these consumable materials is a low-effort way to join the sustainability movement.
- Reduction in usage: Installing low-flow toilets and faucets can reduce water consumption, while LED lighting and automatic shut-off switches can reduce electricity needs.
- Change computer: Switching from energy-guzzling desktop computers to eco-friendly laptops can significantly reduce electricity consumption.
- Carry out an energy audit: Whether through a local utility company or a third-party company, an energy audit can determine areas for improvement. Many audit programs can also identify incentives and tax credits for which your business may be eligible.
Implement renewable energy solutions
While there are many types of renewable energy (geothermal and wind to name a few), for most car dealers these solutions mean one thing, solar. Solar panels continue to become more affordable and many areas offer tax credits.
The rooftop areas of the showroom, service building and parking structures are ideal for solar panel installations. Some local utilities will buy the excess electricity, creating a potential revenue stream.
Switch to green products and services
Taking green measures can often be as simple as switching out office and salon supplies. Moving from Styrofoam to paper cups is a starting point; even using recycled napkins, paper towels and copy paper helps. At the same time, switching to non-toxic cleaning products is another way to continue your company’s green journey.
More elaborate steps might include recycling car wash waste for gray water use and offering hybrid or electric vehicles for service loans.
The benefits of going green
There are numerous benefits to making your dealership greener, including:
- Feel Good Factor: Making your business more environmentally conscious can lead to the satisfaction of knowing you’re doing the right thing.
- Marketing value: There is great marketing value in being green. You can promote these efforts in advertising and outreach to the local community.
- Improved result: With thoughtful investment and implementation, taking an eco-centric approach to your business can lead to improved profitability, even if it’s just reducing your utility bills.
Making it real: A dealership’s approach to sustainability
Toyota Lost Pines, near Austin, TX, takes sustainability to the next level. It proudly highlights its status as a LEED Gold certified company and a “Commitment to green initiatives”. These efforts include the use of more than 700 solar panels that provide an energy offset of 60%, the equivalent of removing nearly 255 tons of carbon dioxide from the atmosphere.
The dealership also promotes its many other green measures, such as using environmentally friendly cleaning products, relying on recycled beverage cups and paper, and embracing digital technology (tablets for service advisors and electronically stored data) . There is also an active recycling program for paper products, lubricants, filters, coolant, batteries, tires and other vehicle components.
