Photo: Ford
Ford has recently announced that it would split its EV making and selling business from the classic one. This means dealers will have new rules to follow or no vehicles to sell. Cars with thermal engines under the hood or partially electrified (like mHEVs or PHEVS) will not be subject to changes.
And, once again, Tesla’s “to blame.” Elon Musk’s strategy to eliminate dealers as the middlemen has proven to be successful. Now other carmakers are forced to follow the same path. Ford might not necessarily want to give up on its extended network, but new customers love the idea of not having to haggle. Moreover, knowing what the car will cost right from the get-go is another major plus many don’t want to give up. One way or another, Ford had to make this decision.
Direct-to-customer selling is what will separate successful and unsuccessful automakers in the near future, as costs go lower, profit margins grow, and customers are happier. It is an undeniable fact, one already proven by Tesla. Now it has also been adopted by Rivian and other carmakers from China like Lynk & Co.
Essentially, Ford is looking to test the waters first. The company is planning on setting a certain pricing guide for its newest EVs, one that must be completely respected by dealers that get cars directly from Ford and are licensed by the Michigan-based automaker.
This decision was confirmed by Ford’s President of the Americas and International Markets Kumar Galhotra for WSJ. Keep in mind it won’t happen overnight, as Ford already announced it will hold talks with its dealers.
Markups have been a headache for Ford. Dealers have charged way too much for new hyped-up cars like the Bronco, and it’s happening for the F-150 Lightning too. The carmaker wants to avoid having to deal with this kind of issues.
The future isn’t really looking good for Ford’s network. Many dealers already opted out of the EV certification process – they will sell you a pre-owned one but won’t help you with servicing it.
In the end, dealers will still be able to find some ways of charging customers with extras nobody asked for, so buyers have to keep their ground if that happens. Moreover, we all must watch out for Dodge Demon type of shenanigans where new cars are sold to employees or friends, titled, and then go on display with zero miles on the showroom floor.
Direct-to-customer selling is what will separate successful and unsuccessful automakers in the near future, as costs go lower, profit margins grow, and customers are happier. It is an undeniable fact, one already proven by Tesla. Now it has also been adopted by Rivian and other carmakers from China like Lynk & Co.
Essentially, Ford is looking to test the waters first. The company is planning on setting a certain pricing guide for its newest EVs, one that must be completely respected by dealers that get cars directly from Ford and are licensed by the Michigan-based automaker.
This decision was confirmed by Ford’s President of the Americas and International Markets Kumar Galhotra for WSJ. Keep in mind it won’t happen overnight, as Ford already announced it will hold talks with its dealers.
Markups have been a headache for Ford. Dealers have charged way too much for new hyped-up cars like the Bronco, and it’s happening for the F-150 Lightning too. The carmaker wants to avoid having to deal with this kind of issues.
The future isn’t really looking good for Ford’s network. Many dealers already opted out of the EV certification process – they will sell you a pre-owned one but won’t help you with servicing it.
In the end, dealers will still be able to find some ways of charging customers with extras nobody asked for, so buyers have to keep their ground if that happens. Moreover, we all must watch out for Dodge Demon type of shenanigans where new cars are sold to employees or friends, titled, and then go on display with zero miles on the showroom floor.
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