Ford planning fixed-price online-only EV sales
Blue Oval’s global chief forecasts Tesla-style sales model for its future electric carsThey say imitation is the best form of flattery and it seems that will be the case for Ford, at least in North America, where the Blue Oval brand looks set to follow Tesla’s lead and move to an online-only, fixed-price sales model for its future electric vehicles.
That’s the latest word from Ford Motor Company president and CEO Jim Farley, who was quoted by USA Today as saying the brand has to go 100 per cent remote with EV sales.
“We’ve got to go to non-negotiated price – we’ve got to go to 100 per cent online,” he said during an address at the Bernstein Annual Strategic Decisions Conference.
“There’s no inventory [at dealerships], it goes directly to the customer. And 100 per cent remote pickup and delivery.”
Farley’s thinking would see Ford’s expansive US dealership network evolve from points of sale into a series of showrooms and display centres that will effectively serve as advertising billboards for its growing EV portfolio.
The theory is that the Blue Oval’s overwhelming retail presence across North America will counteract almost non-existent advertising of specific model lines.
“We have this opportunity to use our physical presence to outperform competitors,” Farley said.
“I think our dealers can do it. But the standards are going to be brutal. They’re going to be very different than they are today.”
Farley says the new EV business model, which could be expanded across the entire Ford range and to markets including Australia, would streamline Ford’s distribution processes and save the brand thousands of dollars in costs.
According to USA Today, Ford spends around $2000 per vehicle more on distribution than Tesla, which has no traditional dealerships or advertising.
He added that when he saw Tesla’s second-quarter 2021 profit figures “it was and epiphany – like the angels sung”.
“It was confirmation that electric vehicles can make big money,” he said, acknowledging that the brand had established its EV market dominance early.
Specific details and timelines for Ford’s EV retail revolution are under wraps for now and will likely remain so for a while, and it’s unlikely it will soon be replicated in Australia, where Ford has promised to release five electrified vehicles by 2024, starting now with the Escape PHEV.
Also confirmed for Australia are the E-Transit (late 2022) and E-Transit Custom (2024), but the Ford F-150 Lightning has also been trademarked for Australia, where the Mach-E electric crossover and electrified versions of the new Ranger and Everest are also likely to eventually arrive.
Related: All-electric Ford Transit Custom locked in for Australia too
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