Nearly 400 Dealers Drop Out Of Ford’s EV Program

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Ford’s EV dealer requirements have caused a bit of drama since they were announced in late 2022. With EV sales slowing, some dealers are getting antsy at the thought of sinking thousands or even millions of dollars into a lukewarm EV market. Still, 2,000 dealers bought into the program. Now, Electrek reports, hundreds of those dealers are pulling out altogether.

In December 2022, Ford CEO Jim Farley announced that nearly 2,000 dealers had joined the Model e program. Under the program, dealers would be required to invest hundreds of thousands if not millions of dollars to get their dealerships ready to sell EVs. From Electrek:

Under the program, Ford dealers can choose from one of two tiers to become “EV certified.” The lower tier requires a 500K initial investment and includes:

-Repair and maintenance
-One public DC fast charger
-No EVs to show (BTO only)
-No presence on Ford.com.
-The “certified elite” includes two public DC fast chargers, demo units, rapid replenishment, and a presence on Ford.com but will cost around $1 million to $1.2 million.

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Even though dealers are dropping out, a Ford spokesperson confirmed to Electrek that the company still believes in the program.

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Right now the program is voluntary - so the dealers that don’t want to spend $1 million+ on the upgrades can opt out.. Soon it won’t be optional - meaning Ford will risk losing some dealer franchises if they can’t make a compelling EV to sell. $1 million for some rural dealers that won’t sell more than a handful of EV’s is extremely difficult.

Looks like the company is finally seeing the EV reality. It’s not as rosy of a picture as they thought. Consumers aren’t buying Ford’s EVs, and inventory is piling up fast.

The domestic automakers have a huge advantage over Toyota, VW, and Nissan by having way more dealers in smaller markets. This EV push threatens to end that advantage.