Ford Motor Company is trying to change the way that consumers purchase their EVs here in the USA. Ford is utilizing two new business models for all Ford dealers selling electric vehicles. These new business models, Model E & Ford Blue come with a new set of conditions for dealers to improve the buying experiences for consumers.
“We’ve got to go non-negotiated price. We’ve got to go 100 percent online. There’s no inventory, it all goes directly to the customer. And 100 percent remote pickup and delivery,” – CEO Jim Farley said during a presentation to investors back in June.
For Ford dealerships to sell Ford Model E EVs, there is required training that they have to invest in. This specialized training includes installing proprietary charging infrastructure (publicly accessible DC fast charger), improving physical and digital sales experiences, and publishing non-negotiable pricing online so that would-be buyers can purchase electric vehicles from the dealership right from the comfort of their homes.
Dealerships are still able to come up with their prices but markup prices need to be transparent and visible for customers to shop accordingly. So what does it take for dealerships to be Model E certified? First up at least one proprietary DC fast charger is needed. Next, your dealership needs the investment of $500,000 to complete the stamp of approval to become Model E certified. If dealerships want more than just a small amount of EVs then they need to have at least two DC fast chargers and $1.2 million to become Model E Elite certified.
Ford has stated that there is a deadline for dealerships to decide if they want to participate in either of these business models. The deadline is October 2022, which gives dealerships two months to decide. These new regulations will go into effect in 2024, all other dealerships that don’t invest in this new business plan, on January 1st, 2024 must discontinue selling Model E vehicles immediately. Those who wish to start selling EVs after declining the offer on October 31st will have to wait until 2027 to try again to acquire the Model E certification.