Relieving the weakness of electrification transformation, Ford cancels dealer electric vehicle sales certification
[CNMO Technology News] Ford Motor Company recently announced that it will allow all dealers to sell its electric vehicles, lifting previous restrictions and investment requirements on dealers. The move may be the latest move by the company to adjust expectations based on slowing electric vehicle sales and changes in the market environment.
Two years ago, Ford asked dealers wanting to sell electric vehicles to invest up to $1.2 million in an electric vehicle certification program. It is understood that dealers who choose not to participate will not be able to sell Ford electric vehicles, which naturally aroused strong dissatisfaction from dealers who are unwilling to invest heavily in additional training and infrastructure. The practice led to opposition and litigation from the state dealer association, who argued that Ford could not restrict certain dealers from selling some of its products in such a way.
Ford, meanwhile, is slowing the pace of expansion of its electric vehicles and expressing concerns about slowing demand. Last year, they announced a reduction in the size of a battery factory that was already under construction.
Subsequent announcements emphasized the need to reduce spending on electric vehicles, while the company revised its 2024 electric vehicle production targets. They have also postponed the three-row seat crossover model originally planned to be available to the public in early 2025 and plan to launch a new electric pickup truck, focusing instead on providing more affordable all-electric options.
Ford held a series of face-to-face meetings across the United States, with dealers and Ford executives participating. It is understood that Ford CEO Jim Farley was directly involved in these meetings. Based on feedback, Ford reportedly plans to reopen electric vehicle sales to its entire retail network in the United States, rather than limiting it to specific stores.
Ford aims to balance the interests of dealers who have already made significant investments with the need to lower barriers to entry for new players. In an interview with Automotive News, Lisa Drake, Ford's vice president of electric vehicle projects and energy supply chain, saidbaccarat888:"We are seeing more and more dealers wanting to be involved, and we don't want to be limited to a few. We will popularize training to ensure that basically all dealers have the ability to sell them."
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