Ford executives clarify the online EV-selling model by stating that some of their goals had been misinterpreted.
Jim Farley, Ford CEO, spoke out about the shift to online vehicle sales. He said that remote delivery and prices are not negotiable. After several dealer meetings, Ford executives clarified the meaning of this model for dealers and adjusted their outlook, stating that many of their goals had been misunderstood, Automotive News reports.
Ford will not compromise its non-negotiable pricing plans for EVs, but Ford noted that dealers will be able set their own prices and still have physical stores despite the new online model.
Andrew Frick, Vice-President, Sales, Distribution and Trucks, Ford Blue, and chief liaison with dealers, met 300 dealers over 25 meetings to discuss the EV selling standards. Ford will continue to offer the option of purchasing an electric vehicle at a dealer and physical stores.
Farley said “100% online” last week. Frick explained Automotive News that it was all about “one point of entry,” whether one is physically at a dealership or home. We want to maximize their physical existence and their service capabilities.
Customers can still purchase their EVs from a dealer, but ordering and building will be done online to eliminate the price negotiation process. Incredible dealer markups Marin Gjaja (chief customer officer at Ford Model e) said that Ford would not set the price for EVs. However, dealers will.
Discussions and negotiations are still in their infancy as details of the business model remain to be finalized. Ford’s non-negotiable pricing and the amount dealers will need to invest are still not clear. Frick stated that the amount will vary depending on the market and the size of the shop.
Charlie Gilchrist, principal dealer at Gilchrist Automotive, Texas, stated that he was encouraged by the process following three meetings in recent months.
Gilchrist stated that they are taking a blank sheet of paper and trying together to find ways to be more efficient and effective in providing these vehicles to customers.