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Ford Dealers Will Have To Spend At Least $500K Under New Plan

For some time now, Ford CEO Jim Farley has been calling for a shift toward fixed pricing and online sales, which didn’t go over terribly well with Ford dealers. However, shortly after the automaker announced plans to split itself into two entities – Model e for EVs and Ford Blue for ICE vehicles – details of a new plan for Ford dealers emerged with strict standards for those that choose to become EV certified in one of two Model e tiers – choices that also involve big-time investments from those same dealers.

The entry-level tier – Model e Certified – requires an upfront investment of $500,000 from interested dealers, though roughly 90 percent of that sum will go toward the installation of fast chargers at dealerships. Model e certified Ford dealers will have the ability to service and repair EVs, as well as receive at least one public DC fast charger on the Blue Oval Charging Network, but will not have any physical inventory to sell (though each will have loaners for customers), nor an EV presence on Ford.com, while they’ll also be limited to selling just 25 EVs per year.

On the flip side, the higher tier – Model e Certified Elite – requires an estimated investment of between $1 and $1.2 million, with $900,000 of that needed upfront. Once again, most of that money will go toward charging infrastructure, though there are far fewer limitations for Model e Certified Elite dealers, including the number of EVs they sell and their presence on Ford.com. Elite dealers will also have physical inventory, two public DC fast chargers, access to rapid replenishment, and repair and maintenance capabilities.

Ford dealers have until October 31st to decide to opt in for one of the two Model e tiers, and until the end of the year to shell out the investments required to do so before the program takes effect in 2024. However, Ford dealers that choose to wait will get another shot at EV certification in 2027, while Lincoln dealers will be getting their own unique set of guidelines, with details set to be released in the coming weeks.

We’ll have more on Model e soon, so be sure and subscribe to Ford Authority for non-stop 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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Comments

  1. Jim Glass

    The down side of this plan is that there will a scarcity of qualified e dealers in many rural areas since won’t spend that kind money for the possibility of selling 25 e vehicles at msrp.

    Reply
    1. Thurston Munn

      1st class insanity coming to a Ford dealer near you.

      Reply
  2. Greggt

    Guess the idea is to put all the small independent Ford dealers out of business.

    Reply
  3. Mark B

    I don’t have any way of comparing what dealers currently spend by way of Ford corporate to operate their dealerships, but this seems a rather steep ramp to ascend to meet this barrier to entry.

    Reply
  4. Arcee

    The Ford dealers around here are currently selling every single Mach-E they can get their hands on. That is despite there being literally one public fast charging station within a 20 mile radius. I would anticipate those dealers will be on board with the certification.
    It is interesting that there will be public chargers installed at the dealer. However regardless of whether it is 1 charger or 2 chargers, they will always be occupied (or people will simply park in front of them.) I foresee not only Ford EV owners using them, but also owners of other EVs thinking they can get a fast charge advantage over driving to the ElectrifyAmerica charging station. This is going to be a mess.
    For reference, the Nissan dealer here has had a charging station installed for Leaf charging for a few years now. There is never a Leaf parked there. It is always used as overflow parking by either the service department or customers…even on the weekends when the dealer is closed.

    Reply
  5. Michael

    My favorite brand is now going woke, soon to be going broke. They wanna make a new Mustang, skip a production year (’23) and make a car that looks like its part Camaro and part Charger. Add to that, it was nearly impossible to order a ’22 and have it the way you wanted it. I went from mildly peeved when they used the name Mustang on an EV, to now seeing what Ford has become over the past 2 years. I’ll be keeping my ’21 HPP/HP Mustang for a while, but it won’t ever be replaced by anything Ford is currently making, and since I’m not in the market for a bloated SUV or a truck I don’t need, its likely my ’21 was the last new Ford (out of 5 I’ve bought from them) I ever buy.

    Reply
  6. Michael

    And you wonder why dealers are trying to charge as much as they can for the most popular Ford vehicles they sell. To pay off the millions of dollars needed now to upgrade their dealership for EV certification, before they will not have any vehicles to sell, and are only paid by Ford to handle a limited amount of on line sale vehicles that they will make a fixed amount on. Sounds like a loosing proposition to me.

    Reply
  7. hot toddy

    all this investment in a rising interest rate enviroment and no end to the chip shortage in sight. I don’t know of any businesses that would think making an investment this large in this environment was a good idea.

    Reply
  8. Mark Johnson

    If one or several Ford dealerships are sell the new elect. F-150 or the Mustang , all dealership should be qualified to do maintenance and repairs on these cars .. not just a select few . I live out in the country meaning I would have to go to a Ford dealer within the city limits , because my Ford dealership in my town doesn’t and is not certified to do repairs or maintenance . This alone would stop me from buying a Ford elect. because of the hassle and the problems to a dealership and to it’s maintenance.

    Reply

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