Dealerships are facing challenges in adapting to electric vehicles (EVs), possibly even more so than consumers themselves. Sales staff must become knowledgeable about EVs to effectively inform customers, technicians need to acquire skills to repair these vehicles, and dealers must ensure they have the capability to charge them. To prepare for new EV models, many dealerships are investing significantly in renovations. However, as Ford dealerships embark on this transition, the automaker is advising them to pause their plans for now.
Ford is set to meet with its dealer council in early June to revise the EV retail requirements based on feedback from recent discussions.
“We don’t want them to make any decisions between now and the middle of June when you can maybe have a more informed decision-making process based on what we work out with the council in the next few weeks,” stated Andrew Frick, president of Ford Blue, the company’s EV division, in an interview with Automotive News. “There’s a lot that we’ll be reviewing.”
In late 2022, dealerships voiced their concerns about Ford’s build quality and pricing, as well as the stagnation in the EV market. Throughout the past 11 meetings, attended by Ford CEO Jim Farley, dealers were able to share their issues and suggestions directly. Topics covered included everything from assistance with floor plans to electric vehicle standards and changes to Ford Credit, as the company aims to rebuild trust with its dealers through transparent communication.
“What was great is that we had candid conversations around every aspect of the business,” Frick noted. “Nothing was off limits.” He added that 93 percent of dealers left the meetings feeling more confident in the brand than before.
Dealers have been urged to invest substantial amounts into fulfilling the requirements for EV sales, with some spending as much as $1.2 million. However, this is a challenging task without assurance of a return on their investment, especially amid periods of excess EV inventory. Following the upcoming meeting, dealers may gain the confidence needed to make more decisive commitments.
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