Ford executives have clarified the model of online sales of electric vehicles, saying that some of their goals have been misinterpreted. The American brand is not going to abandon the good old dealerships.
Earlier this month, Ford CEO Jim Farley talked a lot about switching to online car sales with non-negotiable (fixed) prices and remote deliveries. After a series of meetings with dealers, Ford executives explained what this meant for the sales model from the point of view of the dealership, and adjusted their view on this issue, stating that most of their goals were misinterpreted.
“Ultimately, Ford is sticking to its plans to set non-negotiable prices for electric vehicles, but noted that dealers will still be able to set their own prices and have physical showrooms, despite the online sales business model.”
Andrew Frick, vice president of sales, Distribution, and trucks at Ford Blue, as well as the company’s chief dealer relations specialist, held 25 lengthy meetings with 300 dealers on electric vehicle sales standards. He explained that Ford will not give up physical dealerships selling cars and the opportunity to buy an electric car the old-fashioned way.
When Mr. Farley mentioned last week about “100 percent of Ford car sales online,” it was about “a single point of entry, regardless of whether you are physically at the dealership or choosing a car online,” Frick said.
This means that customers can still buy their electric vehicles from a dealer, but the ordering and assembly process will be carried out online to eliminate the price negotiation process, hence the incredible dealer margins. However, Ford will not control the prices of electric vehicles, according to Marin Giaja, chief customer officer of Ford Model e. Dealers will still set their own price.
Not so long ago, our publication wrote that the Ford F-Series and Toyota RAV4 turned out to be the most sold-out cars in the United States in May 2022.