Ford Is Ditching Dealerships For Future EV Sales

[DJL]

One of the many reasons I chose the Lucid Air was that I was fed up with interacting with a variety of dealerships across the country in my attempt to buy a hybrid. So many time I experienced a bait and switch or, if I did find someone who actually had and was selling a vehicle I would buy, there were rediculous markups or garbage add ons that offered no value at all. Well, Ford Motor Co just decided to throw that all out. The headline of an article I just read was:

Ford Is Going to 100% Online, Fixed-Price Sales For EVs​

CEO Jim Farley says direct delivery, zero negotiation, and fully online transactions are necessary for the brand's EV business.

Thankgoodness this announcement come now instead of a few months ago. Otherwise, I would have not discover Lucid and its amaizing technology.
To read the article, just click HERE.

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[HC_79]

Let’s see how well that works out for them. They’ll face the same issue Tesla is facing in some states where they can no longer sell online. The dealers will kick up a stink they’re being cut out and then the government will step in to block it and force them back to using the dealer.

 

[Rob Stark]

Unlike Tesla, Ford has franchise dealership agreements in all 50 states.

I think Ford will lose the legal battle with most state dealership organizations if not all of them.

Many states prohibit automakers or executives from automakers from owning a 3rd party corporation to circumvent state franchise dealer laws to sell direct to retail consumer.

Same goes for Scout and VW Group.

 

[joec]

Legal battles aside, I can see why Ford wants to do this. They know many EV customers are fed up with the dealership model. And this could differentiate them further from the other traditional auto manufacturers, as they all bring more EVs to market.

Not to mention all the markups going on, which has to be hurting sales.

Now, if Ford made an EV sedan, they might actually get my attention.

 

[limtless]

They never said they will cut out the dealerships. I am sure they will ship it and quote it from your local dealership of choice. But Dealerships are going the way of Blockbuster.

 

[Bbq9]

Let’s see how well that works out for them. They’ll face the same issue Tesla is facing in some states where they can no longer sell online. The dealers will kick up a stink they’re being cut out and then the government will step in to block it and force them back to using the dealer.

I fear you are right but how I wish this could be a future in my lifetime. No dealers, wow, so cool

of course to fix that involves overhauling the whole approach to “political patronage”

 

[victoryroad]

I applaud Ford for its announcement and hope that it prevails in the inevitable legal challenges. The fact is that dealerships make a significant percentage of their revenue from service and EV's do not require the service that ICE vehicles need. Ford is just trying to stay ahead of what will be a major disruption in the auto industry with its dealer franchise model.

 

[Slam08]

Dealerships make a bunch of money for the people that own them. I didn’t realize that a lot of people made millions this way!

'Unsexy' businesses from which a few people are getting rich

Author Seth Stephens-Davidowitz highlighted a study from 2019 that found that the typical rich American is the owner of a 'regional business,' like an 'auto dealer' or a 'beverage distributor.'

www.dailymail.co.uk

Having said this. Ford is going to sell the vehicles at the same price or higher and pocket what used to be dealer fees. The real people that win are Ford executives and shareholders. Lol.

 

[Paladin732]

There have been theories for awhile that Ford would split out their EV and ICE businesses. Doing that would allow this to occur, as the dealers won’t have agreements with the “new” company.

This is a pretty direct response to dealer price gouging. Ford has been VERY vocal in telling off dealerships doing “market rate adjustment” which is just a fancy term for excess profit+price gouging.

 

[Bbq9]

There have been theories for awhile that Ford would split out their EV and ICE businesses. Doing that would allow this to occur, as the dealers won’t have agreements with the “new” company.

This is a pretty direct response to dealer price gouging. Ford has been VERY vocal in telling off dealerships doing “market rate adjustment” which is just a fancy term for excess profit+price gouging.

The poor dealers have to make their money somehow, and if there is limited servicing you can bet they are going to get it one way or another

been here 10 years now, and have already vowed I will not use a traditional dealer ever again

 

[pam4_AGT]

been here 10 years now, and have already vowed I will not use a traditional dealer ever again

Amen. Join the club.