Ford Motor Co. (NYSE:F) is allowing all of its dealerships in the U.S. to sell electric vehicles (EVs) from July 1.
This decision comes as the automaker discontinues its voluntary Model e certification program.
What Happened: The Model e program, introduced in 2022, required dealers to make substantial investments in charging stations, training, and other equipment to support the sales and service of EVs. Dealers who didn't meet these requirements were ineligible to sell EVs.
The program was implemented during a surge in EV demand due to the global microchip shortage, which disrupted the production of traditional vehicles.
The Model e program faced legal challenges, and EV sales didn't grow as expected due to customer concerns about pricing, access to charging stations, and lifestyle changes. The decision to discontinue the program will double the number of U.S. Ford dealers eligible to sell EVs to 2,800.
Marin Gjaja, Ford's Chief Operating Officer of the Model e EV business division, said, "We're getting into the tough innings. We're getting into the early majority customer who isn't in it just for technology and willing to pay a premium. They want a practical, usable vehicle."
He added, "We need Ford and our dealers pulling together to help bring the market along."
Why It Matters: The decision to allow all dealers to sell EVs comes as Ford has been making significant strides in its EV strategy. In June, it was reported that Ford was recruiting top talent from Rivian, Tesla, and Apple to bolster its low-cost EV team. This move was part of Ford's efforts to build a flexible platform that could be used for various types of vehicles.
Despite the challenges, Ford's EV sales have seen an 88% increase this year.
The decision to allow all dealers to sell EVs is expected to further boost EV sales. Gjaja also mentioned that the company will require its dealers to install two Level 2 charging stations by March 31, 2025, to sell EVs and have their employees participate in EV training.
Despite the challenges, Ford's EV sales have seen an 88% increase this year.
The decision to allow all dealers to sell EVs is expected to further boost EV sales. Gjaja also mentioned that the company will require its dealers to install two Level 2 charging stations by March 31, 2025, to sell EVs and have their employees participate in EV training.