- Slate is a startup automaker seeking to make the least-expensive truck in America
- In lieu of dealerships, it has struck a service and repair deal with a huge network of local repair shops
A new startup automaker is attempting to build the least expensive pickup truck in America. Slate Auto, partially funded by Amazon founder Jeff Bezos, launched in April with plans to build a tiny electric pickup with a starting price below $20,000.
The company hopes to get to its low price using some unorthodox moves. Slate trucks, for instance, will lack most of the sophisticated consumer electronics automakers build into today’s cars. Want a screen in one? There’s a mount for a tablet.
Every Slate truck will be painted gray, though the company will offer hundreds of custom color options through vinyl wraps.
You can even order a kit to turn your Slate truck into an SUV. Slate will install the seats and roof for you, or provide them to you so you can do it yourself.
It’s a lot of zigs where traditional automakers zag. Now, Slate has announced another unusual twist — instead of dealerships for service, Slate will teach your local car repair shop to do most service and repair on its trucks.
Many Shops for General Repair, Limited Set for Electrical Work
- Only a subset of RepairPal shops will be able to perform work on Slate’s high-voltage systems
“In an industry first, Slate will offer customers simplified, transparent service through certified RepairPal service centers in the neighborhoods where Slate’s customers live,” the company says.
RepairPal calls itself the nation’s largest network of repair shops. Rather than a single company operating shops, it’s a network that inspects shops and certifies those that meet its standards. RepairPal currently has more than 4,000 certified shops nationwide.
Those shops, Slate says, “will be trained on Slate procedures for accessory installation,” and able to “provide service and repairs on Slate trucks.”
Repair work on the power systems of electric vehicles (EVs) is complex and requires trained technicians and specialized equipment that many shops lack. So, for high-voltage work, Slate says, only “select RepairPal shops” will be certified.
So far, Slate says, it has qualified more than 200.
Startups are Risky, but Slate has Deep Pockets
- Buying from a startup automaker has risks that buying from an established brand doesn’t
- But Slate’s investors may give it a chance at stability
Launching a new automaker is one of the most challenging endeavors in business. Designing a compelling car might even be the easy part.
Startups must be prepared to lose hundreds of millions of dollars for many years before they start to turn a profit. They must build factories, establish a dealership network or an alternative method of distributing and repairing cars, advertise, and produce tens of thousands of cars, all at a loss, before they can hope to break even.
The most prominent recent success story, Tesla, made its first dime selling cars in its 19th year in business. Today, it’s one of the world’s most successful automakers.
But many similar efforts have failed before reaching that point. Names like Fisker and Lordstown are largely forgotten, except by those who bought one and struggle to get service for it today.
We think Slate has a fighting chance. Its backers, including one of the world’s wealthiest people, have the ability to absorb losses. It has hired many executives from Amazon, where arguably the greatest modern logistics operation runs today.
And creative solutions, like the RepairPal deal, may help it expand at a lower expense.
There will always be risk involved in buying a car from a startup. But keep your eye on Slate.
