Ford Authority

Ford Dealers To Get More Details About New Business Model Next Week

Earlier this year, Ford revealed its plans to split into two distinct entities – Model e, which will focus on EVs, and Ford Blue, which will handle the ICE side of things. As part of this process, Ford dealers will also be asked to specialize in one or the other as soon as next year. Part of this plan initially involved setting fixed prices for vehicles – a move that Ford dealers are wary of and have protested – while also being required to meet high standards to sell EVs. Ford CEO Jim Farley admits these changes are a bit of a stress test for dealers, but it seems as if more details regarding this monumental shift are coming next week, according to Reuters.

These details will come from Farley himself, who is traveling to Las Vegas, Nevada next week to meet with dealers in an attempt to sell his plan for slashing the cost of delivering EVs to customers by as much as $2,000 – a key mark that Ford is aiming to achieve so that it can better compete with Tesla and other EV makers that don’t utilize dealer networks. One key part of that meeting is discussing how the automaker will regulate the selling of EVs as well.

Roughly one-third of that savings stems from what Farley refers to as a “low inventory model,” where customers order vehicles and they’re shipped directly to them. Such a move is expected to cut around $600-$700 from the cost of delivery, while automakers like Tesla are also able to implement instant price changes via its website – another boon to online-only sales.

In addition to outlining this strategy, Farley is expected to also address minimum investments a Ford dealer must make in terms of installing charging stations and other equipment to support the sale of electric vehicles. However, in some states, franchise laws could give those dealers leverage in terms of fighting fixed prices or direct delivery. Regardless, Farley also plans on focusing more on the post-purchase customer service, less traditional methods of advertising, and enhancing customer experiences.

We’ll have more on this as soon as it’s available, so be sure and subscribe to Ford Authority for 24/7 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. Bill Kircher

    Ceo wants to cut cost by 2k after Ford raised EV prices 4 to 7k! Going after dealer profits? Is Ford looking to shed dealerships?

    1. Chris Blanchard

      Buick Division is; they are offering buyouts to all dealers, as Buick is going all electric. They expect that mostly rural dealers will take the offer.

    2. The Gentle Grizzly

      Farley is playing a coy little game. At least GM is up front to their Caddie and Buick dealers: spend money on updates, or we’ll buy out your franchise.

  2. robh

    While I applaud Mr. Farley’s efforts to reduce costs to consumers, this seems to be self serving for the manufacturer, versus the dealership. Don’t get me wrong, i hate car dealerships as much as the next guy. but a week or so ago, Ford announced they were raising the price of that Mach E by about $8000. But now Farley is going to say he is trying to help the consumer by getting the dealers to configure their pricing to to cut the price by $2000. If he was really wanting to help the consumer and promote EV adoption, he would not be raising the prices of their EVs. so it seems its okay for the company to make more profits. but not the dealer. I also find it interesting the price increase on that Mustang EV is just about the exact amount of the federal $7500 subsidy. For me, i am not interested in an EV for a variety of reasons. but by his raising the price of that car $8000, his pitch to the dealers to cut their profits by $2000 seems hypocritical.

  3. Michael

    If Ford does not care about or for their dealers, what do you think they think about their customers, order holders, employees, suppliers, etc.

  4. Steven Goggans

    I think GM is going about this in the right way. If you don’t wanna spend the money to update towards EVs we will buy ya out and go have a good life. Ford is just playing around the issue probably scared at the idea of dealerships just saying screw you. Harley went through this in the past, when they told small dealership to update to a bigger store or die. A lot and i mean a lot died out, and now i bet they wished they had a smaller footprint like Ducati or BMW. This isn’t a good situation for anyone but the OEMS have to make it right or good luck in 10 years finding service. The one silver lining is that all of these dealerships that acted like they were never be a rainy day it’s coming.


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