Ford continues to plough ahead in its plans to revolutionize its existing dealer relationships as it shifts to electric vehicles (EVs).
However according to Yahoo News, some dealers are still unhappy and pushing back against the changes.
At the September Ford Dealer Conference, Ford introduced the Model E Certified Tier program.
The two tiers were Model E Certified and Model E Certified Elite, and dealers needed to decide by October 31 which tier they would join. That deadline was later extended based on initial feedback from dealers who requested more time to consider their options.
The two tiers would require dealers to:
|Model E Certified||Model E Certified Elite|
|Specialized Product Training||Specialized Product Training|
|Delivery, pickup and loaner vehicles to EV buyers||Delivery, pickup and loaner vehicles to EV buyers|
|Creating a channel to sell Ford subscriptions||Creating a channel to sell Ford subscriptions|
|Install at least one DC Fast Charger||Install at least two DC Fast Chargers|
As an incentive to dealers to invest in getting the Elite certification, Ford indicated that Model E Certified dealers would only have 25 EVs per year to sell and could not keep them on the showroom floor.
In addition, Ford is looking to shift dealer margins to find $2,000 in savings per vehicle. This $2,000 per vehicle-saving would allow Ford to better compete with Tesla’s margins.
At least to say, some dealers are not happy about the changes, especially in terms of the aforementioned vehicle allotment and margins, as well as the requirement to spend up to $1.2 million to install EV chargers.
Dealers are also unhappy with Ford’s shift to no-haggle pricing, ending the days of exorbitant markups.
So, due to dealer pushback, the October 31 deadline is now December 2 to give dealers more time to consider their options.
During that time, dealer associations have requested meetings with Ford, and the automaker is sending a delegation to Mississippi to meet with the state’s Motor Vehicle Commission to advocate changes to the program.
However, many dealers have already opted to join the program, and we are not sure there will be sweeping changes in the next month.