The world’s first major car seller was Benz, as in Karl Benz. The name sounds familiar, doesn’t it? Established in Germany in the late 1800s, the company expanded into other European countries and became the global leader in its field.
The company soon expanded from Germany into other European countries, beginning with France. By the end of the 19th Century, Benz was the largest car company in the world. Which does not mean it was a mega-business: Less than 600 cars were sold in 1899.
Driving lessons, gasoline, and money to buy
In 1895 a young man from Peru, Illinois, William E Metzger attended the world’s first automobile show in London, England. He liked what he saw and went on to visit the factories of Daimler and Benz in Germany. Then he returned to the US to build the first automobile showroom in America in 1898. (Interestingly, the first cars exhibited and sold there was electric, but that is an entirely different story.
The story of automobiles in the US coincides with unparalleled post-war growth and affluence, with car ownership as the ultimate symbol. Initially, the cars were distributed and sold via agents who sent each customer’s order to the manufacturer. Delivery times were far from impressive.
With increased volumes the big carmakers set up franchised dealer networks, and as early as 1919 GM opened a financing subsidiary–first for the retailers and later for their customers, the car buyers.
Some dealers offered driving lessons, others sold gasoline as well as cars. The quality and reliability of the vehicles were not impressive, so service and repairs were a natural part of car sales from the very beginning. But the idea of offering used or “pre-owned” cars was still a bit premature.
After the war, the famous American Big Three in Detroit lost significant ground to both European and especially Japanese carmakers.
In Japan, Toyota launched a wild range of car models, and an equally wild range of sales channels for specific models or types of cars aiming at different customer categories, like “sporty”, “luxurious” or “heavy-duty”.
The game changer
Founded in 2003, with no car-making history and clearly inspired by Apple, Tesla set out to change car distribution for good. The construction of the modern all-electric car has enabled the company’sstrategy is to sell exclusively through its own website, and via company-owned stores, and service centers.
The electrification of automobiles proceeds this and other novel ideas are likely to influence other carmakers in the years to come. But one thing remains the same: The visual presentation of each car model, highlighting each function and feature, will remain at the heart of every car buyer’s mind.
Learn more about us and what we can do book a demo