RV_ Posted October 18, 2022 Report Share Posted October 18, 2022 I have been saying all along that the traditional sales model of a dealership can't compete with direct sales EVs. After trying to restrict EV sales by not allowing direct to consumer sales in some states the ICE manufacturers are having to regroup now that they admit to themselves EVs are here to stay and demand far outpaces supply. And it will be that way for a while. The market has spoken over and over all over the world. Ford is taking a different tack in making its transition to EV sales and production. Excerpt: "LAS VEGAS – Ford Motor is asking its nearly 3,000 dealers to invest upward of $1 million in upgrades to sell all-electric vehicles, as the automaker attempts to cut overhead costs and boost profits at its retailers to better align with EV-leader Tesla Farley wants Ford’s retailers to cut selling and distribution costs by $2,000 per vehicle to be competitive with the direct-to-consumer model. “We’ve been studying Tesla very carefully over the last several years,” Farley said. Wall Street analysts have largely viewed direct-to-consumer sales as a benefit to optimize profit. However, there have been growing pains for Tesla when it comes to servicing its vehicles. Farley is hoping to increase its cost competitiveness before Tesla can further scale its domestic business — following success of scale in Norway. Tesla did not immediately return a request for comment. No buyouts Ford, unlike crosstown rival General Motors, is allowing dealers to opt out of selling EVs and continue to sell the company’s cars. GM has offered buyouts to its Buick and Cadillac dealers that don’t want to shell out to sell EVs. “There’s too much uncertainty. We don’t think it’s fair to force them to go on the EV journey or force them into a buyout,” Marin Gjaja, chief customer officer of Ford’s Model e electric vehicle business. “We think it’s really uncalled for because they have a healthy and strong, growing business. … We want them to have the choice.” GM did not immediately return a request for comment. About 90% of the upfront investment costs are expected to be for installation of EV chargers, including DC fast chargers that can cost $300,000 or more, according to Gjaja. Only a few dozen of Ford’s 2,991 dealers currently have the high-speed chargers, he said. Aside from the investments, dealers who opt into selling EVs will need to abide by five standards to stay within good standing: clear and non-negotiable pricing; charging investment; employee training; and improved vehicle purchasing and ownership experience for customer, both digitally and in-person. Ford is offering its dealers the option to become “EV-certified” under one of two programs — with investments of $500,000 or $1.2 million. Dealers in the higher tier, which carries upfront costs of $900,000, will receive “elite” certification and be allocated more EVs, executives said. Dealers have until Oct. 31 to make a decision and until the end of the year to make the investments. It’s an effort to elevate Ford dealers as the company seeks to grow sales across its traditional and commercial businesses as well as EVs. Tesla and other electric vehicle startups sell directly to consumers without franchised dealers. “We’re betting on the dealers. We’re not going to go direct. But we need to specialize,” CEO Jim Farley told reporters Tuesday after briefing dealers about the plans. “The main message I have for the dealers, which I’ve never said before, because I didn’t believe it was true, is that you could be the most valuable franchise in our industry.” Ford’s plans to sell EVs have been a point of contention since the company split off its all-electric vehicle business earlier this year into a separate division known as Model e. Farley said the automaker and its dealers needed to lower costs, increase profits, and deliver better, more consistent customer sales experiences." I say it is about time! Sources: https://www.cnbc.com/2022/09/14/ford-outlines-ev-investment-structure-for-its-dealers-as-it-chases-tesla-like-profit.html https://arstechnica.com/cars/2022/09/ford-tells-dealers-electric-vehicles-must-have-transparent-set-prices/ https://cleantechnica.com/2022/09/16/ford-drops-a-bomb-on-dealers-youre-either-in-or-youre-out/ Quote RV/Derekhttp://www.rvroadie.com Email on the bottom of my website page.Retired AF 1971-1998 When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius “Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire Link to comment Share on other sites More sharing options...
Ray,IN Posted October 19, 2022 Report Share Posted October 19, 2022 Ford built its first EV in 1914, but major problems killed the program. I'm with you, Its about time. Quote 2000 Winnebago Ultimate Freedom USQ40JD, ISC 8.3 Cummins 350, Spartan MM Chassis. USA IN 1SG retired;Good Sam Life member,FMCA ." And so, my fellow Americans: ask not what your country can do for you--ask what you can do for your country. John F. Kennedy 20 Jan 1961 Link to comment Share on other sites More sharing options...
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