Dealers No Longer Have To Invest Millions To Sell EVs

In September 2022, when excitement for electric vehicles was bubbling through every corner of the automotive industry, Ford mandated that dealers who wished to sell electric vehicles would have to spend millions in infrastructure investment and training as part of a special certification program. Dealers were unimpressed by this, arguing that although there was plenty of interest in EVs, the actual demand for electric cars was not as high as Ford’s higher-ups seemed to think. It’s worth noting, however, that in 2022, production levels were nowhere near today’s output, so demand at the time certainly outstripped supply. After several consultations and meetings across the country, Ford finally allowed dealers to halt these investments last month. Now, the whole program has been scrapped.

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Universal Access From Next Month

According to Automotive News, the program comes to an end next month, with all Ford dealers getting the opportunity to sell EVs. Of course, infrastructure and training needs still exist, so dealers will be asked to train staff through the AI-powered virtual Ford University platform. It’s unclear how much dealers will be required to invest now, but the Auto News report says they will be asked to “spend a minimal amount” on two Level 2 chargers per location.

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For the record, the 2022 certification program required a minimum investment of $500,000 in charging and training. The new approach was reportedly communicated to dealers yesterday (June 13) and is expected to continue being updated as the market changes. Finally, dealers can breathe a sigh of relief. If EVs become big sellers, they won’t have to scramble to raise fortunes, and if they take a while to gain popularity, dealers will still be able to meet their bottom lines since hundreds of thousands of dollars won’t be tied up in white elephant dealership upgrades.

Hybrids And Humble Pie

Gjaja sticks by the decision Ford made two years ago, saying that, based on the market conditions at the time, “it was the right call.” However, he concedes that the market has changed, adding, “It’s humbling, but the most important thing we can do for our dealers and our business is to change with it and not just keep pounding away with the same strategy.” That’s why Ford is pivoting away from EVs to hybrids, just as the likes of General Motors, Mercedes, and several others have done.

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While it may have been a mistake to aggressively coerce dealers to invest in a product they didn’t fully believe in, Ford’s determination to lay the groundwork for an all-electric future has given it advantages that other automakers may not enjoy. Several dealers are already up to speed with training and have chargers installed, and they have a better understanding of the EV customer’s requirements as a result. Ford Blue (combustion division) president Andrew Frick also says that the program helped “build an e-commerce muscle in the company [it] didn’t have before.” Still, Ford has lost well over a billion dollars on EVs this year, and whatever it does next in the space needs to be well-considered. We’ll be keeping a close eye.

Source:
Automotive News