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Ford Gives EV Dealers 2 Months to Adapt to New Rules

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Ford Gives EV Dealers 2 Months to Adapt to New Rules-GadgetAny
Ford EV

Ford dropped an ultimatum at its annual dealership meeting in Las Vegas this week, reported Inside EVs (a website for electric vehicles news, reviews, and reports). Consequently, the brand gave its dealers until the end of October to accept new rules or stop selling EVs. 

Furthermore, Ford’s been looking for a way to change how customers buy its EVs in the US. Therefore, the company developed a new division called Model E, which was created when Ford split into three arms – Ford Blue Oval, Ford Pro, and Ford Model e. Following this, Ford shifted all its EVs under the Model e umbrella. And the Ford Blue Oval will be responsible for internal combustion vehicles and hybrids.

Ford EV

 

Moreover, CEO Jim Farley stated during a presentation to investors in June, “We’ve got to go non-negotiated price. We’ve got to go 100 percent online. So there’s no inventory; it all goes directly to the customer. And 100 percent remote pickup and delivery.”

Although all of Farley’s wishes won’t get fulfilled, Ford gave its dealers a sneak peek of how it will sell EVs in the future. So, according to the automaker’s latest move, if a dealer wants to sell Model e EVs, they must agree to invest in regular training, install charging infrastructure, improve their physical and digital sales experiences, and most importantly, publish non-negotiable pricing online. Therefore, it will allow customers to buy a Ford EV without visiting a dealership. Even so, only dealerships will sell Ford EVs, and no sales will occur directly from the brand because of state laws. 

Ford EV

 

More Details

On another note, Inside EVs reported that dealerships can still set their prices. But, Ford believes that if prices are onlies, customers can cross-shop to find the cheapest options. Also, once customers lock a price online, neither the customers nor dealers can change it. 

Dealerships will require at least one publicly accessible DC fast charger to get the Model e certification. Additionally, if they want more than a bare minimum allocation of Ford EVs, they will require a Model e Elite certification. And for that, dealerships need more investments, including at least two DC fast chargers. Unfortunately, these certifications are not free—-it may cost car dealers up to $500,000 for Model e and $1.2 million for Model e Elite.

Ford EV

 

Most importantly, owing to their success in the past couple of years, car dealers can refuse to spend money on Ford’s electrification and tell the brand they’d instead stick to fossil fuel-powered cars and trucks. Besides, in 2021, about 30% of Cadillac’s dealers gave up their franchises instead of investing in preparing for that brand’s electrification.

Nonetheless, Ford EV dealers have until October 31 to decide if they want to keep selling the brand’s EVs. Lastly, the new rules will go into effect in 2024. On the other hand, a dealership that changes its mind, wanting to sell EVs after declining, will have to wait until 2027 before it can obtain a Model e certification.

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Monica Green

By Monica Green

I am specialised in latest tech and tech discoveries.

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