Summary
– Ford is reconsidering its plan that restricted dealers from selling EVs without significant investments
– Ford asked dealers who had signed up for its EV certification program to pause investments
– Ford plans to open EV sales to its entire U.S. retail network based on feedback from in-person meetings with dealers
– Ford previously required dealerships to invest up to $1.2 million in an EV certification program
– Ford has been revising its EV production goals for 2024 and shifting focus to more affordable all-electric options in response to slowing demand
Article
Ford initially restricted dealers from selling EVs without significant investments in an EV certification program, requiring as much as $1.2 million per dealership. However, after facing pushback from state dealer associations and lawsuits, the company is now planning to open EV sales to its entire U.S. retail network. This change comes as Ford reevaluates its approach to electric vehicles amid slowing sales and concerns about the evolving marketplace.
The decision to allow any dealer to sell EVs follows a series of in-person meetings between Ford executives and dealers, where feedback was gathered and considered. Ford CEO Jim Farley was directly involved in these meetings, indicating the importance of dealer input in shaping the company’s strategy. The goal is to strike a balance between honoring commitments to dealers who have already made significant investments and reducing barriers for new participants in the EV market.
Ford’s shift in strategy regarding EV sales is part of a larger reassessment of its electric vehicle plans. The company has been scaling back its EV expansion efforts, citing slowing demand as a key factor. This includes downsizing a battery factory under construction and revising EV production goals for 2024. Additionally, Ford has delayed the release of certain EV models, such as a three-row crossover and an electric pickup, in favor of offering more affordable all-electric options.
The initial requirement for dealers to invest in an EV certification program drew criticism and legal challenges from those who felt it unfairly restricted their ability to sell Ford EVs. By removing these restrictions and opening EV sales to all dealers, Ford is signaling a more inclusive approach to its electric vehicle strategy. This decision reflects the company’s recognition of the changing landscape of the automotive industry and the need to adapt to evolving customer preferences and market dynamics.
Overall, Ford’s decision to reverse its initial plan and allow all dealers to sell EVs without restrictive investment requirements is a significant shift in its electric vehicle strategy. The company’s willingness to listen to dealer feedback and adjust its approach accordingly demonstrates a commitment to fostering a more collaborative and inclusive relationship with its retail network. As the automotive industry continues to evolve towards electrification, Ford’s decision to open up EV sales to all dealers could help drive greater adoption of electric vehicles and expand the company’s market presence in this growing segment.
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