Ford weighs changes to EV dealer rules

The ongoing dialogue and potential changes highlight strategic differences between Ford and some of its competitors when it comes to preparing retailers for the future. Ford dealers have options in terms of how much they can invest and stay with the brand even if they choose not to sell EVs. Other brands, namely Cadillac and Buick, are asking dealers to abandon their franchises if they don’t agree to spend hundreds of thousands of dollars on chargers and other EV tools.

“We are confident that all sides will feel we are fair and within the boundaries of franchise law and will come to a place where Ford can compete and win and customers can stand their ground. We provide an industry-leading level of service,” said Hovik. “We’re on a really good path right now.”

Hovik said Ford is considering relaxing requirements for dealers to offer 24-hour public EV charging.

In addition, brands are looking to change certain marketing-related benefits that “certified elite” dealers receive over dealers who choose the cheaper “certified” tier. It’s not listed on and I haven’t received an EV demo unit.

Finally, Ford may change how it sells EVs in the future. For now, sales of certified tier EVs are capped at 25 per year, but Hovik is moving to a fairer distribution formula similar to how current models are distributed today. He said he was considering doing so.

“I think the formula will end up with similar numbers to the caps, but I think adjusting the allocation formula will give dealers an opportunity to grow, which is what we really want,” Hobik said. It is to be.”

About 1,000 Ford dealers have chosen not to invest in the EV program. They can stay branded, but will be limited to selling petrol-powered and hybrid models.Ford plans to give these dealers another chance to participate in the program in 2027.

At Cadillac, more than a third of its 875 dealerships will follow acquisitions the brand offers from 2020, bringing the number of U.S. dealerships to around 560, officials said. Offers typically ranged from $300,000 to $500,000.

Cadillac spokesman Michael Albano said the brand added three points in New York, Los Angeles and Atlanta.

Nearly all Cadillac dealers (about 98%) meet the requirements, Albano said. The rest are waiting for the charger or parts to be installed.

Buick does not share the number of dealers that have chosen to accept the takeover offer.

Those who stay with the brand will have to invest an average of at least $300,000 to $400,000 to sell a Buick EV. That minimum investment required by dealers for tooling, training, and other equipment is an estimated average and varies by individual store.

Giving Buick dealers the option to invest in an EV helped the brand’s dealer council endorse the concept, said Bo Mandal, chairman of the Buick-GMC National Dealer Council.

“Our council supported it 100% — if that’s the dealer’s choice,” Mandall said. car news“The whole conversation was only going to take place if that was the dealer’s choice.”

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