With big sales targets in sight, Ford will require buy-in from dealers to sell electric cars in the US
In what can be potentially viewed as a test case for other territories, Ford will require its US dealer force to commit to million-dollar-plus upgrades and adhere to a fixed price model in order to sell electric vehicles.
At its first face-to-face dealer conference since 2018 – held in Detroit in conjunction with the motor show – Ford laid out its multi-layered EV sales strategy, which forms part of a three-pillar restructure of the wider business.
“We’ll offer non-negotiable pricing for EVs, available through a simplified Ford.com site,” said Ford Motor CEO Jim Harley in a blog post.
“Selected dealerships that specialize (sic) in EVs will offer public fast-charging sites, rapidly expanding Ford’s charger network and easing any range anxiety for customers.
“And our expanded suite of remote services, including mobile maintenance and nationwide complimentary pickup and delivery, will provide customers new levels of convenience.
“Our dealer network is our secret weapon, comprised of entrepreneurs who can deliver for customers all the way through the ownership experience. These are big changes, but we’re up for the challenge.”
Two-tier EV franchises with fixed pricing
US dealerships will be offered a choice of two EV certification tiers. The highest level, Model e Certified Elite, will enable dealers to carry limited stocks of EVs as well as demonstrators.
In return, they will be required to invest approximately A$1.6m up front, the majority of which will go towards the installation of a pair of DC chargers for the dealership.
A third DC charger will need to be added by 2026.
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The lower Model e Certified level, designed for smaller dealerships, requires a lower level of investment covering just a single DC charger, but will not have access to demo vehicles nor carry stock.
Their annual EV sales will also be capped, and customers will need to order vehicles for delivery.
All EV dealers will be required to sell electric vehicles at fixed prices.
Ford says the plan is designed to close the price gap disadvantage to online EV sellers like Tesla and Rivian.
Currently, Ford sells the (below from left) F-150 Lightning pick-up, the E-Transit and the Mach-E SUV in the US.
Ford EV in Australia
It’s anticipated that the Mach-E will go on sale in Australia more quickly than expected.
It has entered right-hand drive production and made its way into British showrooms, and has also been confirmed for New Zealand.
Ford’s big EV plans
Ford plans to ramp up production to 600,000 EVs per annum by next year, and wants to build more than 2 million a year by 2026.
The Ford EV dealer certification program will run from January 2024 through to the end of 2026, with a new offering planned for 2027.
In the US, Ford is now divided into three distinct businesses. Ford Pro serves commercial customers, Ford Blue covers internal combustion vehicles, while Model e looks after electrification.
There are approximately 3,000 dealers in the US.
Farley (below) said that the company does not want to rush dealers into selling EVs before their respective markets are ready.
“We want people to take on these standards that can be profitable in executing them,” he told reporters in Detroit this week.
“It will not be good for the dealers or the company if people take on these standards and they don’t get a return on their investment.
“We’re not so excited or dogmatic that we want a certain number of people to take it that we’d look past the financial viability of it. That’d be a really bad move for us.”
[author] [author_image timthumb=’on’]https://editorial.csnstatic.com/editors/tim-robson-author.jpg[/author_image] [author_info]Tim Robson[/author_info] [/author]
