Ford is making a big change for its dealerships. They are ending a program that made dealers spend between $500,000 and $1 million to sell electric vehicles (EVs). Now, all Ford dealers can sell EVs without needing this expensive certification.
The decision comes after Ford saw that its predictions for EV sales were too high. They expected more people to buy EVs, but the actual growth has been slower. Because of this, Ford is letting all its dealerships sell EVs without needing a big investment.
Marin Gjaja, Ford’s Chief Operating Officer, told reporters that this move is meant to boost Ford’s EV sales. The old program, started in September 2022, required dealers to invest in things like fast-charging stations and staff training. It was based on the idea that more people would buy EVs soon and dealers would make back their money.
But things changed in the EV market since then. Sales have grown more slowly than expected. The initial excitement from early adopters who like new technology has slowed down. Now, car companies like Ford are trying to attract more practical buyers who are careful with their money.
Ford dealers started to worry last summer when they saw fewer people buying cars like the Mustang Mach-E. They also had issues with demand for the F-150 Lightning. This caused problems between Ford and its dealers.
Before the slowdown in EV sales, many Ford dealers already didn’t like the high cost of joining the EV program. Some dealer groups even went to court over it. In one case, dealers in Illinois won a lawsuit saying that Ford’s program went against state laws.
By the end of last year, more than half of Ford’s almost 3,000 dealerships in the US had chosen not to join the EV program. This showed that the program wasn’t working as Ford had hoped.
Now, Ford dealers will still need to invest some money to sell EVs, but they won’t have to spend at least $500,000 like before. This change is part of Ford’s new plan to sell more electric cars without putting a big burden on its dealers.
