Ford to Dealers: Get in or Stop Selling EVs

Ford told approximately 3,000 U.S. dealers at its annual dealer meeting in Las Vegas that they will need to invest up to $1.2 million in upgrades to continue selling EVs under Ford's Model E business unit.

Dealers have until October 31 to participate in the first round of Model E dealerships if they want to, InsideEVs reported. Dealers can also sign up at a later specified date or choose to become a Model E dealer, according to the report.

Model E is the EV passenger car and software division created when Ford split into three business units earlier this year. Along with Model E, Ford Pro will handle commercial vehicles, while Ford Blue Oval will handle internal combustion passenger cars, hybrids, and plug-in hybrids.

Ford will have two tiers of Model E dealers - Certified and Certified Elite. Lower tier Model E Certified dealers must install at least one DC fast charger, which must also be available for public use. Ford estimates that the average cost to become Model E Certified is $500,000.

As outlined by Ford, Model E Certified Elite dealers must install at least two high-power DC fast chargers and one Level 2 AC charger for their customers, as well as one DC fast charger for shared use. The total cost to achieve elite status is expected to be $1 million to $1.2 million, with the charging infrastructure accounting for 90% of the upgrade costs for both tiers.

Ford will stick with franchised dealers rather than direct sales models like Tesla, but dealers entering the Model E business will also have to agree to non-negotiable pricing.

Dealers can also opt out of becoming Model E certified; dealers who opt out by October 31 must stop selling electric vehicles beginning January 1, 2024. Dealers will be given another opportunity to become Model E certified, but they will not be able to sell electric vehicles until January 2027.

It also appears that Ford will not offer a buyout to dealers who are out of the EV shift for these brands, as General Motors does for Cadillac and Buick dealers; in an interview with CNBC, Ford's Model E Chief Customer director Marin Gujaja said the Blue Oval plan will give dealers more options.

"I don't think it's fair to force them to go on the EV journey or force them to buy back," Gjaja said.

Dealers could stick with the Blue Oval and Pro business units and continue to sell other vehicles, Ford spokesman Syed Deep told Motor Authority.

"We conducted an extensive listening tour of dealers to understand their market and customer needs as we developed new dealer standards," he said.