DETROIT, June 13 (Reuters) - Ford Motor Co ( F ) will
soon allow all of its dealers to sell electric vehicles,
reversing its more selective allocation system in an effort to
boost slower-than-expected sales.
The pivot, which goes into effect July 1, unravels previous
requirements that only let dealers sell EVs like the F-150
Lightning pickup and Mustang Mach-E SUV if they had invested a
set amount in training and infrastructure.
The Dearborn, Michigan, automaker unveiled the EV selling
rules in late 2022, requiring dealers to spend between $500,000
to about $1 million on expensive charging equipment and other
programs. About half of Ford's 2,800 dealers enrolled in the
group since it was introduced.
"We want to make these great vehicles more accessible to
everyone," Marin Gjaja, chief operating officer for the
company's EV business, said of the change in requirements.
"There is always a learning curve with a new technology and
introducing EVs in a simple, hassle-free way helps to remove
many of the perceived barriers our dealers and customers are
concerned about," he added.
Dealers were required to meet certain training requirements,
in addition to installing chargers, to prepare their staff to
help educate customers on the complexities of EV ownership.
Ford CEO Jim Farley previously warned dealers they would be
held to "brutal" standards to stay competitive and serve
customers during the EV transition.
That transition has been bumpier than many auto executives
expected. Automakers like Ford have prioritized production of
hybrid vehicles as sales growth rate of these models have
outpaced pure EVs. U.S. hybrid sales increased 25.3% from 2022
to 2023 for Ford, whereas EV sales rose 17.9% over the same
period.
New EV players like Tesla sell directly to consumers
without dealerships, giving it a financial advantage over legacy
automakers. Farley has noted that Ford spends about $2,000 per
vehicle more than Tesla because of its franchise dealer model.
Dealers who did invest hundreds of thousands into the
machinery and programs Ford required are feeling burned now that
EVs will soon be available to all. Some dealers told Reuters
they are having trouble moving EVs off their lots into the hands
of customers, and are even refusing shipments of electric models
because they are selling them at a loss.
Scott Kunes, COO of a Midwest dealer group that sells Ford
vehicles among several other brands, was one of the 1,400
dealers who joined the program. He had concerns about EV demand,
though, so his group only made the investment for their two
largest Ford locations in Wisconsin and Illinois.
"The dealers have been kind of screaming from the sidelines
for a while here that the EV demand is just not there," Kunes
said. While he's glad Ford took the step they did, "it's still a
little bit too late."