One of the main sticking points of Ford’s decision to ask its dealers to opt in or opt out of its new Model e Certified programs was that those opting to sell EVs in the future must do so at fixed prices. The new program has led to much controversy both in the U.S. and Canada – including a few lawsuits – though ultimately, most American dealers opted to not only obtain Model e certification, but also for the higher-tier Elite status, while Australia Ford dealers will apparently continue to set their own prices. Now, according to German publication Automobilwoche, Ford dealers in Europe may follow suit and also switch to fixed pricing in the coming years.
“For us, it is crucial that our network is profitable in the long term,” Ford Model e Europe head Martin Sander told the publication in a recent interview. “We will not implement the necessary adjustments in a rush, but will give ourselves five to eight years to do so.”
In addition to selling vehicles at fixed prices, Ford of Europe is also reportedly looking to downsize its dealer network in that region, starting with the Netherlands in 2024 and Germany in 2025. The idea is to retain profitability in Europe amid rising commodities costs and supply chain issues, though Sander’s comments are certainly nothing new.
Ford CEO Jim Farley has previously expressed his interest to switch to a fixed price model on multiple occasions, calling such a move “the most exciting land grab in our industry since the Model T,” while Jörg Ullrich, the automaker’s business strategy boss for Germany, Austria, and Switzerland previously said that “a standard price for each model would simplify the system significantly.”
We’ll have more on Ford’s move to fixed prices soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
I wish this wasn’t linked to the EV fad, but the absurd dealer markups are driving a lot of customers away. It seems to be the worst at Ford dealers.
I don’t think fixed prices will work. Basically, if your competition does not have fixed pricing, they can and will underbid you. Therefore, you need a higher quality product to offset their lower prices. And quality is not Ford’s selling point at the moment or, really, ever.
David D is spot on, the competition will just undercut fords fixed priced.
Ford senior management in Europe have their heads firmly in the sand..
Why do you think that Ford wouldn’t price to find the sweet spot of beating the competition but without its own dealers cutting each other’s throats while racing to the bottom of profitless prosperity?
This is the right direction to move in if Ford/Lincoln want to survive in the industry. There is not enough space to list all the savings and problems corrected/eliminated. Mr. Farley shows huge confidence in Ford’s ability to once again become one of the best manufacturers in the industry. The ‘competition’ moves off the customer and back onto the best companies in the industry.
As Ford slowly sinks into the dark shadows of oblivion. Ford would be out of business within 5 years.
Or it scores most of the goal shots it’s making and is better off than it is today.
Ford doing things like it always had done them as the world changes around it is what would have put Ford out of business.