Ford ends EV dealership program that required hefty investment to sell electric models

Ford has faced legal challenges from dealers over its "EV-certified" dealership program. Some dealers and dealer associations filed legal challenges in at least six states, claiming that Ford's EV program violated dealer franchise laws. They were dissatisfied with the financial commitment required to sell the company's electric vehicles.

Several factors contributed to the slower-than-expected growth of EV sales that influenced Ford's decision:

1. Economic Uncertainty: The global economy has faced uncertainty due to various factors, including the COVID-19 pandemic, which has affected consumer purchasing power and confidence.

2. High Upfront Costs: Despite advancements in technology and economies of scale, electric vehicles still generally have higher upfront costs compared to traditional internal combustion engine (ICE) vehicles. This has deterred some potential buyers.

3. Charging Infrastructure: The availability and accessibility of charging infrastructure have been a concern for potential EV buyers, especially in areas where public charging stations are scarce.

4. Range Anxiety: While the range of EVs has improved significantly over the years, some consumers still worry about the distance they can travel on a single charge, known as 'range anxiety.'

5. Policy and Regulation: Changes in government policies and regulations, such as subsidies and tax incentives for EVs, have influenced consumer purchasing decisions.

6. Consumer Preferences: Consumer preferences for larger vehicles, such as SUVs and pickup trucks, have shifted, and these segments have been slower to electrify.

7. Competition: The automotive market is highly competitive, with many automakers introducing their own EV models, which has led to a wider range of choices for consumers but also increased competition for sales.

These factors combined have led to slower-than-expected growth in EV sales, prompting Ford to reevaluate its EV dealership program and open EV sales to all of its dealers in an effort to boost sales of its electric vehicles.