Last spring, Ford began utilizing a pilot program that involved stocking and distributing its electric vehicles at what it calls Retail Replenishment Centers (RRC) – which are regional inventory hubs – rather than dealer lots. The idea here was to eliminate floorplan expenses for dealers and help reduce distribution costs for the automaker itself as it works to compete with the direct sales model utilized by companies like Tesla and Rivian. However, Ford has now decided to scrap that program, not too long after it ditched its Model e Certified EV sales program as well.
According to Automotive News, Ford has officially informed dealers that it is discontinuing this pilot program and switching back to a more traditional warehouse process used for ICE models and others. The reasoning behind this decision stems from the fact that EV inventory wasn’t visible to consumers aside from visiting Ford’s official website, as the models weren’t listed on dealer sites or even those operated by third parties. Ford ultimately fixed that issue, but dealers cited other problems such as difficulties obtaining window stickers for available EVs, as well as the simple fact that there just wasn’t much inventory on lots for consumers to look at and compare.
“Our intent all along was to better serve the customer,” said Mike O’Brien, Ford’s senior director of retail network and sales strategy. “We think the pilot, from an operational perspective, was a big success. That being said, we listen to our dealers. There’s been a lot of shifts in the marketplace. It is a little tricky to have two different [sales] methodologies.”
Just this past October, The Blue Oval launched an incentive program for dealers aimed at encouraging dealers to take advantage of the program by providing them with $1,000-$1,500 for every Ford F-150 Lightning they sold using the replenishment centers. Amid slow demand for the EV pickup, Ford paused production late last year and has cut back its planned output of the next-generation F-150 EV, too.
Comments
“Hide the Weenie” program between the OEM and the Dealer.
Nobody wants these things languishing on their “books”.
Customers not really wanting them in their driveways, either.
Years ago Ford of Canada had a similar program and we dealers referred to the vehicles as ‘pool stock’. It likewise did not work.