Nearly 400 dealers dropped out of Ford’s EV program, and there will be more to come. They’re not selling at the rate they predicted. The unsold vehicles will rust out in the lots.
Jalopnik explains that EV sales are slowing, and some dealers do not want to sink thousands or even millions of dollars into a lukewarm EV market.
Originally, 2000 dealers had bought into it.
Electrek reports that hundreds of those dealers are pulling out altogether.
When the program started in December 2022, Ford CEO Jim Farley announced that nearly 2000 dealers had joined the Model E program. The dealers had to invest hundreds of thousands of dollars, if not millions of dollars, to prepare their dealerships to sell EVs.
They had to choose one or two tiers to become EV certified. The lower tier requires a $500,000 initial investment and includes repair and maintenance, one public DC fast charger, no EVs to show, and no presence on Ford.com.
The “certified elite” get two public DC fast chargers, demo units, rapid replenishment, and a presence on Ford.com, but they have to pay $1 million to $1.2 million.
What a losing proposition, right from the start, but this is the government picking winners and losers for scam ideological projects.
The dealers accused Ford of violating the franchise laws with the Model E program. Ford then came around and said they’d ease EV dealer requirements following changes in the market. Ford did ease the requirements, including allowing dealers to opt-out. So, 400 dropped out right away.
Ford still says that the company believes in the program. They have to say that. Ford told Jalopnik after the article was published that dealer numbers have calmed down to just over 50%.
“As dealers have completed their own due diligence in their local markets, dealer enrollments have stabilized at around 53% of the network (around 1,550 Dealers). This enrollment level places 86% of the population within 20 miles of a Ford dealership capable of selling and servicing a Ford EV.”