Dealerships are experiencing a rift over electric vehicles (EVs). This represents a decline from about two-thirds of dealers expressing their intention to sell EVs just a year ago.
Dividing Dealers
Approximately half of Ford's nationwide dealerships have opted to continue selling hybrid and internal combustion engine vehicles in 2024. These dealers are postponing the decision on whether to invest in the infrastructure needed for selling and servicing electric vehicles.
Highlighting the diverse landscape of electric vehicle (EV) adoption rates nationwide, Ford's representative, Marty Gunsberg, underscored the company's trust in its dealers' understanding of their respective markets.
The Verge reported that Gunsberg revealed that more than half of Ford's dealerships have committed to 2024, ensuring that 86% of the population resides within a 20-mile radius of a Ford dealership ready to facilitate the sale and service of Ford EVs.
Recent data from Ford indicates a shift in dealer sentiments, reflecting a cooling-off period. A year ago, the Detroit Free Press reported that Ford CEO Jim Farley had successfully garnered commitments from two-thirds of dealers to fully embrace the sale of EVs.
During that period, Ford announced the enrollment of 1,920 dealers in the voluntary Model e Program for the initial 2024 to 2026 durations. It was later confirmed by Gunsberg that some dealers chose to withdraw from the program.
In the near future, Detroit Free Press reported that customers in search of electric vehicles will encounter signage designating dealers as either Model e Certified Elite or Model e Certified.
This distinction is noteworthy as it not only signifies the commitment of these dealers but also informs the public about the availability of fast chargers essential for recharging electric vehicles, addressing a persistent challenge for consumers.
This initiative aims to provide additional locations for charging stations, contributing to the ease of access for electric vehicle users.
Initially, Teslarati reported that Ford required its dealers to make a pivotal decision regarding an estimated investment ranging from $500,000 to $1.2 million for the installation of charging infrastructure to attain special certification status.
This investment was deemed necessary for dealerships to service electric vehicles, as the absence of charging stations hindered their capability to do so. A subsequent certification period is scheduled for 2027, aligning with the release of Ford's new electric vehicle lineup.
Despite the presented investment figures being initially positioned as conservative, they triggered a backlash among dealers, leading to legal challenges against the program.
Revising the Program
In response, Ford has revised the program, reducing the number of required charging stations per dealership and consequently lowering the overall investment for dealers. The automaker clarified that installation costs vary based on individual dealer sites.
Ford has not disclosed specific details about which dealerships will proceed with the EV investment. However, the company hinted at variations in the enthusiasm for EV commitments across states, with EV-friendly states like California making progress, while regions such as the Dakotas show slower adoption.
In contrast to General Motors, Ford has opted not to offer dealership buyouts for those unwilling to venture into the EV market, as clarified by Gunsberg. Recent reports indicate that nearly half of Buick dealerships, approximately 1,000, are choosing not to participate in General Motors' transition to an all-electric plan by 2035.
