April 9, 2020

CREATIVE DESTRUCTION:

Coronavirus pushes auto dealers to embrace online sales like Tesla, Carvana (Michael Wayland, 4/09/20, CNBC)

While Tesla and Carvana, an online used car sales company, have been selling vehicles online for years, U.S. auto retailers have essentially used the internet as a tool to bring people into the dealership, not to sell vehicles.

Many saw online sales as a threat to their showrooms; however, the coronavirus is changing that. Automakers are rolling out new online sales tools or enhancing current programs for dealers, as they view online sales as one of their last chances for salvation during the pandemic.

Fiat Chrysler, for example, launched a new online sales program this month that allows customers to partially, if not completely, go through the sales process online. As with Carvana and Tesla, the purchased vehicle can be delivered to their home without them ever stepping foot in a dealership.

The pandemic has a chance to make much of the economy more efficient.



MORE:
It's time to move past employer-based health insurance: The coronavirus shows tying health insurance to jobs is a disaster. Let's fix it.  (Ezra Klein,  Apr 9, 2020, Vox)

Here, as elsewhere, Covid-19 is worsening a policy problem that long predates the virus. Tying health insurance to employment is now, and always has been, a disaster. It gives bosses too much power over workers, reduces entrepreneurship, saddles businesses with health costs they can't control and insurance problems they don't understand, makes the tax structure more regressive, reduces wages, bloats administrative spending, and drives up costs throughout the system.

Posted by at April 9, 2020 2:10 PM

  

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