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(Motor Authority) — The vast majority of Ford’s U.S. dealerships have determined to plug into the automaker’s electrical future, Ford CEO Jim Farley mentioned throughout Monday’s Automotive Information Congress.
Throughout its annual vendor assembly in September, Ford advised its sellers that particular person shops might want to invest up to $1.2 million in upgrades to proceed promoting Ford EVs.
Sellers had the selection of Licensed and Licensed Elite upgrades, which Ford estimated on the time would value about $500,000 for Licensed and between $1 million and $1.2 million for Licensed Elite. Sellers additionally needed to comply with non-negotiable pricing.
Farley has revealed that 1,659 shops selected the Licensed Elite possibility, whereas 261 selected the Licensed possibility, representing near two-thirds of the automaker’s roughly 3,000 shops within the nation.
Farley additionally revealed that these sellers nonetheless sitting on the fence can have one other likelihood to choose in to Ford’s electrical future in 2025, acknowledging that the electrical transition will take time.
Ford has supplied a similar ultimatum to its Lincoln dealers, although Farley didn’t point out the take price among the many luxurious division’s shops.
Through the Automotive Information Congress, Farley additionally talked about Ford’s plan to let prospects order automobiles immediately from the automaker on-line, thus circumventing dealerships, just like the direct gross sales mannequin made widespread by Tesla. He mentioned the way forward for the present franchise mannequin hangs within the steadiness.
Fairly excessive stakes for the automaker’s pivot to EVs with its retail community, Farley says:
“The way forward for the franchise system hangs within the steadiness right here.”
— Automotive Information (@Automotive_News) December 5, 2022
Common Motors supplied buyouts to Cadillac sellers that didn’t wish to get onboard with that model’s EV shift, with about one-third opting to give up their franchises moderately than promote EVs, which might additionally require some stage of added funding. GM is offering Buick dealers buyouts as effectively, with each manufacturers anticipated to be all-electric by the tip of the last decade.