Decisions, decisions

Ford dealerships have the next six weeks to decide if they want to keep selling electric vehicles from 2024 through 2026 – and they’ll have to agree to new conditions if they do, the automaker revealed yesterday.

☝️ First things first: Earlier this year, Ford reorganized its company to form three main divisions:

• Ford Pro, which sells all types of vehicles to businesses.
• Ford Blue, which sells internal-combustion engine and hybrid electric vehicles to consumers.
• Ford Model e, which sells fully electric vehicles to consumers.

All 3,000+ US Ford dealerships are currently allowed to sell any type of car to consumers without restriction – but that’s set to change when the automaker’s newly-announced rules take effect on Jan. 1, 2024. At which time, all Ford dealerships wishing to sell its Model e line must invest in regular training, improve their physical and digital sales experiences, install one or two EV fast-charging stations, and publish non-negotiable pricing online.

🚘🔌 The decision: The full cost of becoming a Model e certified dealer ranges from $500,000 to $1.2 million. And the clock is ticking: dealers have until the end of October to submit their formal decision to Ford. Plus if they opt-out of becoming a Model e certified dealer now, they won’t have the opportunity to reverse course until 2027.

📝 Zoom out: Ford’s policy stands in partial contrast to rival GM, which told its Cadillac and Buick dealerships to either a) make the necessary upgrades for EVs at a cost of ~$200,000, or b) accept a buyout and close their doors – which ~20% ended up doing.