financetom
Business
financetom
/
Business
/
Ford walks back EV dealer restrictions to boost sales
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Ford walks back EV dealer restrictions to boost sales
Jun 13, 2024 2:18 PM

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."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved