During its annual dealer meeting in Las Vegas, Ford revealed new rules for electric vehicle sales in its Model E business unit, which could put an end to marking and haggling — even though they love require substantial upfront investment agents.
Ford earlier this year split itself into three business unitswith the Model E focusing on electric passenger cars on software, the Ford Pro handling commercial vehicles, and the Ford Blue Oval covering internal combustion passenger vehicles — including hybrids and plug-in hybrids.
Dealers have until October 31 to decide if they want to be part of the Model E first store group. They will have another chance to sign in at a later date, or they can opt out of the Model E entirely and continue working with the Ford Pro and Blue Oval business units.
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Those who join with Model E will have to make changes to the way they work, as well as upgrade based on two dealer tiers — Certified and Certified Elite.
In the sketch of new agent rules provided for Green car reportFord says lower-end Model E Certified dealers must install at least one public DC fast charger, while Certified Elite stores must have at least two public DC fast chargers, plus additional chargers. supplement for customers.
Ford estimates Model E-certified dealers will spend an average of $500,000 on these upgrades, while Certified Elite dealers have a direct connection to direct Ford.com sales. will spend between $1 million and $1.2 million to meet the requirements for that class. Ford expects toll infrastructure to account for 90% of the upgrade cost in both cases.
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And while Ford is sticking with franchised dealers instead of moving into direct sales like Tesla, the Model E spinoff will make sense. EV price is not negotiable and fewer cars in stock.
“Transparent, non-negotiable pricing is part of our customer experience on Certified Elite and Certified,” confirmed Model E spokesperson Marty Ginsberg with Green car report.
Ford CEO Jim Farley said earlier this year that he sees the changes as a step toward the automaker’s health in the face of what he predicts will be “a big price war“and the era of “democratized electric vehicles”.
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For now, dealers not participating in the Model E program will have to stop selling that business unit’s vehicles as of January 1, 2024. Ford will offer another hiring opportunity, but dealers will sign on. that date later will not be able to sell Model E vehicles until January 2027.
While GM already offers buybacks to Cadillac and Buick dealers unconcerned about these brands’ electric futures, Ford is taking a different approach, basically provide a middle layer between whole EV sales and forcing dealers to abandon their franchises. In an interview with CNBC This morning, Model E’s chief customer officer, Marin Gjaja, reiterated that point.
“We don’t think it makes sense to force them to continue their EV journey or force them to buy back,” he said. car.