Ford lays out its EV sales model

In what could become a test case for other countries, Ford will require its US dealer network to commit to million-dollar-plus upgrades in order to sell electric vehicles.

North American Ford dealers will also need to adhere to a fixed-price sales model for the Blue Oval brand’s new wave of EVs, although a non-negotiable pricing strategy has been ruled out for Australia.

Ford Australia’s first EV will be the E-Transit van in early 2023, followed by the smaller E-Transit Custom and, almost certainly, the Mustang Mach-E in 2024. The Ford F-150 Lightning and electrified versions of the new Ford Ranger could follow.

At its first face-to-face dealer conference since 2018 – held in conjunction with the Detroit motor show – Ford laid out its multi-layered EV sales strategy, which forms part of a three-pillar restructure of the US car-maker’s wider business.

A US dealership will be offered a choice of two EV certification tiers. The highest level, Model e Certified Elite, will enable dealers to carry limited stocks of EVs as well as demonstrators.

In return, they will be required to invest approximately $A1.6 million up front, the majority of which will go towards the installation of a pair of DC fast-chargers for the dealership. A third DC charger will need to be added by 2026.

The lower Model e Certified level, designed for smaller dealerships, requires a lower level of investment covering just a single DC charger, but will not provide access to demo vehicles nor have to carry stock.

Their annual EV sales will also be capped, and customers will need to order vehicles for delivery.

Ford says the plan is designed to close the price advantage for online EV sellers like Tesla and Rivian.

Currently, Ford sells the Mach-E, F-150 Lightning and E-Transit in the US.

It plans to ramp up production to 600,000 EVs per annum by next year, and wants to build more than two million a year by 2026.

The dealer certification program will run from January 2024 through to the end of 2026, with a new offering planned for 2027.

In the US, Ford is now divided into three distinct businesses. Ford Pro serves commercial customers, Ford Blue covers internal combustion vehicles, while Model e looks after electrification.

Ford CEO Jim Farley said the company does not want to rush dealers into selling EVs before their respective markets are ready.

“We want people [dealers] to take on these standards that can be profitable in executing them,” he told reporters in Detroit.

“It will not be good for the dealers or the company if people take on these standards and they don't get a return on their investment.

“We're not so excited or dogmatic that we want a certain number of people to take it that we'd look past the financial viability of it. That'd be a really bad move for us.”

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