According to CEO Jim Farley, over 65% of Ford Motor’s dealers have committed to selling electric vehicles as the company invests billions to increase manufacturing and sales of the battery-powered cars and trucks. Farley said, 1,920 of Ford’s almost 3,000 U.S. dealers agreed to sell EVs. He claimed that almost 80% of those dealers chose to invest more in EVs.
The choice to become “EV-certified” under one of two plans, with estimated investments of $500,000 or $1.2 million, was made available to Ford’s dealers. Dealers in the more expensive tier, which entails upfront payments of $900,000, are certified as “elite” and given access to more EVs.
Ford, in contrast to nearby competitor General Motors, is allowing dealers to choose not to sell EVs and to continue selling the company’s automobiles. Dealers of Buick and Cadillac who don’t want to invest in EV sales have been offered buyouts by GM. When Ford reopens the certification process in 2027, dealers who previously decided against investing in EVs may do so.
Since the firm spun off its all-electric vehicle business earlier this year into a distinct subsidiary known as Model e, there has been debate over Ford’s ambitions to market EVs. According to Farley, the manufacturer and its dealers must reduce expenses, boost profitability, and provide better, more reliable consumer sales experiences.
Farley reaffirmed that a direct-sales strategy is anticipated to cost the manufacturer thousands of dollars less than the industry’s customary franchised arrangement.
Ford Challenges Tesla
Ford Motor Company declared on Friday that it has achieved its CEO Jim Farley’s aim of becoming the nation’s second-best-selling producer of electric vehicles.
Citing third-party industry data, the Detroit automaker narrowly defeated Hyundai/Kia to get the intended outcome. Despite continuing to be the industry leader by a wide margin, Tesla has been losing market share as other EVs enter the market.
The CEO of Ford has made it clear that he wants his company to control the electric vehicle industry. In April, he issued a direct challenge to “all comers to become the top EV maker in the world,” including Tesla, the largest EV manufacturer in the world.
On December 1, Ford also disclosed that it would invest an additional $153 million in its U.K. manufacturing facility to boost EV output. Ford surpassed Tesla to become the second-best-selling brand and electric vehicle manufacturer in America in November with a total of 6,255 sales, an increase of almost 103% over the same month last year.
According to Ford, its market share for electric vehicles climbed from 5.7% in November of last year to 7.4% during that month.
Ford reported selling 53,752 all-electric vehicles in the US through November. According to Tesla, which does not break out domestic figures, more than 908,000 electric vehicles were delivered worldwide through the third quarter.
Hyundai’s sales statistics do not include the Nexo hydrogen fuel cell vehicle. The company claims that through November, it sold 54,043 more battery- and fuel cell-powered vehicles than Ford.
The sales occurred after the South Korean automaker lost incentives that under the Inflation Reduction Act, which became effective in August under the Biden administration, granted buyers of its electric vehicles with tax credits of up to $7,500. Ford’s electric vehicles and other vehicles built in North America are still eligible for the credit.
Tesla has long dominated EV sales in the United States. Although it was down from 71% in 2017 and 79% in 2020, S&P Global Mobility said that its market share of newly registered electric vehicles in the United States stood at 65% through the third quarter. This is due to the increase in EV availability.
As of right moment, Ford’s sole all-electric models are the Ford F-150 Lightning truck, Mustang Mach-E crossover, and e-Transit van. The company plans to invest tens of billions of dollars in the technologies by 2026, and it’s expected to generate a large number of further EVs on a global scale.