Ford enables all dealers to sell EVs, bringing +90% of Americans within reach
What prompted Ford to allow all dealers to sell EVs, and what impact does this have on the accessibility of EVs for Americans?
Ford's decision to allow all dealers to sell EVs was prompted by a need to adapt to the evolving electric vehicle market and respond to feedback from dealers. The company initially introduced the Model e EV dealer program in 2022, which aimed to streamline EV sales by allowing dealerships that expressed interest to sell electric models. However, over time, the market changed, and dealer enrollments dropped from around two-thirds to just over 50%.
In response to this decline and dealer feedback, Ford decided to open its network to all dealers, enabling them to sell and service EVs. This change significantly impacts the accessibility of EVs for Americans. With 90% of the population living within 25 miles of a Ford dealership that can sell or service an electric vehicle, it becomes much more convenient for potential buyers to access and purchase EVs.
Ford's move is expected to help close the gap between EVs' current state (regarding range, charging, and performance) and buyers' perception by introducing a simple, hassle-free way of selling electric vehicles.
What are the implications of sunsetting the Model e dealer program, and when will this take effect?
The implications of sunsetting the Model e dealer program include allowing all Ford dealers to sell and service EVs, which will increase the accessibility of Ford's electric vehicles to consumers. This move is expected to help close the gap between EV capabilities and buyers' perception by introducing a simple, hassle-free way of selling EVs. With over 90% of Americans living within 25 miles of a Ford dealership that can sell or service an EV, this decision will significantly expand the company's EV reach.
The Model e dealer program will be retired at the end of the month, with changes rolling out starting on July 1, 2024. For dealers who have already invested in the program, Ford is still in discussions, but invested dealers will maintain a competitive advantage as their charging infrastructure will generate more traffic, leading to higher sales, service, and charging revenue.
What specific feedback did Ford receive from dealers that led to the easing of requirements for selling EVs?
Ford received feedback from dealers during a series of in-person meetings between Ford executives and dealers. The feedback indicated that many dealers wanted to be involved in selling EVs, and Ford decided to make the process more inclusive by opening EV sales to its entire U.S. retail network. This change aimed to balance the interests of dealers who had already made significant investments with the need to lower entry barriers for new participants.