Ford dealerships have until Halloween to decide if they want to sell Ford EVs.

On Monday we posted an article about how Ford was meeting with Ford dealers in Vegas this week to discuss the future of EV sales at their dealerships. Now the meetings are over, and here’s the gist of it. Ford dealerships have until Halloween to decide if they want to sell Ford EVs. If they do, substantial investments must be made (quickly) on the dealership’s part.

Ford dealers have 3 options…

Become a Model E Certified Elite dealer.
Become a Model E Certified dealer.
Don’t sell EVs.

Tier-1 Elite dealers will have to make the most investments in charging infrastructure at their dealerships. Probably in the 1-1.2 million range. They will have to install fast chargers that are open/available for public use. The tier-2, non-Elite Model E dealers will not have to install as grand of an EV charging infrastructure – basically half. Thus, they’ll need to make about half the investment at ~$500,000. BUT – they will only get a limited allotment of EVs to sell. And that number will be the same across the board for all non-Elite dealers, whether the dealership does big volume or smaller volume. Ford has not yet said what that number will be. But let’s not forget that Ford’s currently having a really hard time actually delivering EVs (even harder if you count Mach E recalls). The last option for Ford dealers is to not play ball… in which case Ford will not allow them to sell any EVs at all. Those dealers will not be able to opt back in for 3 years after they make their decision. All of this goes into effect January 1st, 2024, so it would be 1/1/27 before they could potentially reverse that decision if they decide to opt out. That also means that all Ford dealerships have the 2023 year to continue selling EVs while they do (or don’t) build their infrastructure.

Ford EV Pricing…

In regards to pricing of Ford EVs, it will be no-haggle… but not fixed. Meaning, the dealers will be able to set their own prices… but that will be the price, and they will have to honor it. None of these markup games. Buyers will be able to see & compare every dealership’s price easily on Ford’s website. Customers will also be able to order their Ford EV online, but the car will be purchased from a dealer… not directly from Ford. Or if preferred, they can always come into the dealership to buy the car in person.

Opinion…

It’s pretty shrewd & bold for Ford to try & make the dealerships foot-the-bill to build Ford’s nationwide charging infrastructure. But it’s also smart & strategic. With the number of Ford dealerships across the country (almost 3,000), there should almost always be a Ford dealership (aka a place to charge your Ford EV) somewhere along your route. The questions are: How many Ford dealerships are going to play ball with Ford’s Model E Certified program? What if all the dealers banded together & told Ford to piss off with their Model E Certification? Hell – that’s what I’d wanna do if I was a Ford dealer & Ford gave me an ultimatum like that in Vegas. Also – how long until an entire Ford dealership burns to the ground?

In the metro areas where interest in EVs is higher, the investment into getting Model E Certified makes sense possibly. California dealers basically have no choice lol. But in the more rural areas of the country (all that space between the coasts), interest in EVs is still low. As a Ford dealer in these regions, why take on the expense for something your customers frankly don’t want? It would probably make sense for those dealers to pass on Model E Certification… and revisit it in 2027. Will this plan from Ford help EVs get off the ground? Or will it stifle it?

*For more details on this topic, check out this article by InsideEVs