Ford Authority

Ford CEO Jim Farley Thinks Tesla Will Build More Stores In U.S.

As it invests heavily in expanding its electric vehicle and battery production capacity and lineup, Ford has also kept a close eye on what its biggest competitor in that space – Tesla – is doing. Ford CEO Jim Farley previously called one of the world’s largest sellers of EVs a “major threat,” to its business and in the months since, has revealed a complete revamp for both they company and its dealers, which includes splitting itself into two entities – Ford Model e for EVs and Ford Blue for ICE vehicles – with dealers expected to specialize in one or the other. At the same time, Jim Farley also thinks that Tesla will continue to expand its physical storefronts in the U.S., even though it only sells vehicles online, according to the Detroit Free Press.

Jim Farley

Farley noticed this after taking a closer look at what Tesla is doing in Norway, where it’s building more physical storefronts in a world where the traditional dealership has long appeared to be dying a slow death. “We’ve studied Tesla really carefully over the last several years and especially with how their brand has scaled,” Farley said. “We noticed that, in Norway, they have almost 1,200 employees at very much like dealer facilities. We feel that’s where they’ll go.”

In the U.S., Tesla has thus far struggled to keep up with demand from its customers in terms of service and repairs, and has even reached out to collision centers owned by Ford dealers to help. As such, Farley sees a major opportunity here – to leverage the automaker’s expansive dealer network and use it as an advantage by providing a place where customers can not only shop for vehicles, but also take them in for service or repair without having to take a road trip to do so.

All of this plays into Ford’s decision to reimagine its EV business in the vein of Tesla, albeit with a few tweaks. EV certified Ford dealers will sell EVs at fixed prices under strict standards, while lower-tier EV dealers will only be allowed to sell those vehicles in small batches with no online presence or inventory, though they will be able to provide EV loaners for customers. As for the automaker’s luxury arm – Lincoln – it’s expected to receive its own unique set of standards that haven’t been revealed yet.

We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for around-the-clock Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. JDE

    they almost have to to replace those 26K batteries. as it stands now, someone in say wichita has to use a diesel truck using transport truck to take it hours away for the repair. though at that cost, it basically makes the cars mechanically scrapped. seen a 2014 Model S P100D with under 100K fail in this manner

    1. Robert.Walter

      So what’s the point of your example? It seems well within Tesla’s battery warranty*, so where’s this enormous cost you are trying to portray?

      * 8 years or 100,000 miles, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period.

      1. John

        The real issue here is the used market. Who in their right mind would buy a used EV with little to no warranty remaining?

        1. Robert.Walter

          It’s a 8 year old car with 100k miles, it’s not supposed to be a blue chip investment.

          Folks that buy such a car will buy for their 2nd car or for their kids. And the battery will still have 70% of its original capacity.

          So much chicken little FUD (likely from folks with vested interests) in these comments it’s ridiculous.

  2. DWH

    Considering the lack of interest currently shown by Stellantis for their Dodge and Chrysler divisions. Maybe Tesla will purchase those divisions converting the manufacturing plants and some Dodge/Chrysler dealers to Tesla while Stellantis converts the remaining ones to Alpha Romero dealerships.

    1. Robert.Walter

      Not very likely. Much cheaper to go greenfield, or brownfield, or buy up any FCA physical assets that Stellantis desires to shutter. No need to assume all the legacy liabilities that come which buying it outright.

    2. Tigger

      Dodge and Chrysler are getting a massive product update over the next several years.


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