Following the lead of other manufacturers in the market, Ford recently announced a new dealership model with tough new sales standards aimed at promoting a better environment for electric vehicles.
As reported, Blue Oval is asking its dealers to adopt a no-bargain pricing policy — as is often the case with Tesla and EV startups like Rivian and Lucid — and they’re investing. As for the Ford price, up to $1.2 million to sell Ford electric vehicles.
The fee will be used to install fast charging stations at the dealer. Dealers have until October 31 to choose one of two EV certification levels and choose their investment commitment. Content that is not limited to vehicles with internal combustion engines, hybrid powertrains and electric vehicles will be banned.
Ford is just the latest incumbent automaker to demand additional resources from dealers as they try to keep pace with new electric vehicle makers. In 2020, Cadillac has offered to buy back between $300,000 and more than $1 million for its dealers nationwide if it pulls out of the electric vehicle boom. GMC, GM’s steady partner, followed suit, hanging a carrot in the form of a delivery Hummer EV to dealers who had invested hundreds of thousands of dollars in the equipment in preparation for its arrival.
Ford Model e Program Highlights
At its North American dealer meeting this month, Ford announced a sweeping overhaul of its dealership strategy and named it the Model e. The name closely correlates with the release of the Mustang Mach-E, but Ford has more EVs; Blue Oval previously announced a $22 billion investment in electrification through 2025, and the new F-150 Lightning generated mostly positive feedback.
Pillars of the Ford Model Electronic program include training, billing, e-commerce, physical experiences, and digital experiences. Ford is moving to transparent, non-negotiable auto pricing and hiring specialized sales and ownership teams to smooth the corners of the transition to electric vehicles.
Even before 2020, dealership models are still evolving. Tesla has pushed the boundaries of what the dealership community has deemed acceptable for a while, in part by challenging nationwide franchisee law. While traditional automakers keep an eye on, buyers find they enjoy this new shopping experience without the need to negotiate or spend hours at the dealership. Therefore, when manufacturers began to push their electric vehicle strategy, they began to test changes on the model.
In some states like Texas, direct selling companies like Tesla are prohibited from selling directly to buyers due to fixed franchisee laws. It’s ironic, because Elon Musk and his company have built a large headquarters and factory near Austin, Texas to make components. While Tesla struggled with the law, it was a slow process.
Level of concession explained
Automotive News explains that the dealerships that choose the top level of the Model e certification program – the Model e Certified Elite – will invest $900,000 up front to install two DC fast chargers, with at least one launching. general public. An additional $300,000 investment will likely be required by 2026 to add a third fast charger. Certified Elite dealers will be in stock and have models to show off, Ford said.
The lower level – Model e Certified – requires a $500,000 investment that will cover the cost of installing a public fast charger. However, there are certain exclusions at this level. Ford will limit the number of electric vehicles dealers can sell, and dealers will not have inventory or demo units on the floor for potential buyers to try out.
Ford is going ahead but building a measure of grace for its dealers. Starting January 2024, certifications will be valid until December 31, 2026. If a dealer withdraws from EV certification by that time, they will have another chance in 2027. Welcome your ideas left below this article.
