As part of its upcoming reorganization – which will see The Blue Oval split itself into two entities – Ford Model e for electric vehicles, and Ford Blue for ICE vehicles – Ford dealers are being asked to specialize in one or the other as early as next year. It seems as if the EV side of the business will bring about some major changes to the traditional way dealers are used to operating, however, as it will possibly involve carrying zero physical inventory and perhaps even selling EVs at fixed prices. However, it seems as if Ford dealers who want to sell EVs may also have to clear some large hurdles in order to do so as well.
“We’re going to be very selective with our Model e dealers. Very selective.” said Ford CFO John Lawler while speaking at the 2022 Deutsche Bank Global Auto Industry Conference recently, indicating that the automaker may set a fairly high bar for dealers that are interesting in peddling all-electric models.
What, exactly, those requirements will consist of remains up in the air, however. Initially, Model e dealers were expected to be made to sell EVs at fixed prices with 100 percent digital sales – measures supported by CEO Jim Farley – but the automaker quickly backtracked on those statements after receiving pushback from its dealer network.
In the meantime, all Ford dealers are expected to offer pickup and delivery services by next year as part of this overhaul, a popular service that was piloted during the pandemic. Any remaining forthcoming changes are seemingly still up for debate, as Farley recently stated that the automaker’s dealer network is being “stress-tested” over the company’s new business model, adding that standards will be determined by using that process.
We’ll have more on Ford’s new business model and its impact on dealers soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
Comments
The dealers can’t even hire people that can tie their own shoes and stop yaking and giggling while people wait for their vehicles 15 minutes after they were told it would be finished. So how are they gonna rise to the challenge?
The new sales model might look like this. The dealer has a limited number of demos, maybe 2-3, so the buyer can get a general idea about the EV. The buyer and salesperson then proceed together to place the online order with the buyer presenting a deposit to confirm the order. Financing can be estimated at this time so the buyer knows what the terms will be. The vehicle ordered arrives at the dealer and the salesperson contacts the buyer to arrange delivery (if the salesperson is different, one is selected from a queue). The buyer and salesperson meet at the dealer and complete the deal (no ADM). The salesperson then conducts an orientation/setup of the EV as needed. That’s it! The salesperson is compensated as normal based on the sales price plus a bonus based on a rating by the customer the the dealer determines is appropriate.
Sounds like Ford is using this as a excuse to do a cull of their dealerships, just like Cadillac did. Either convert to EV, and our new sales model, or die.
Many dealers will doubt Ford can hit their EV target because of their costs to sell and build them. Dealers will stay with ICE for some time.
EVs are not going to sell to the masses. The average family EV income is 150K. With many people not making half of that and some in the world 10% of it, tell me who will be buying them?
H-D did it with LiveWire and as a dealer of both I think it’s wonderful. Farley is on the board of H-D. It’s coming. 1/3 of fords dealers will be model E and what isn’t being said is how many of the 2/3 don’t want it and won’t invest in proper charging, etc.
Looks like buying an EVs is more trouble than it’s worth.
I Have a ford F-150 and I have had it for 2 years now. It drives perfectly well and the four wheel on it is amazing.
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