Monday, May 13

Ford EV, ICE split will mean big changes for dealers – Automotive News

Farley and other top executives held multiple conversations this week with Ford’s dealer council and took questions from its wider dealer network in a webcast.

In a rare move, Executive Chair Bill Ford flew to Palm Springs, Calif., to personally address the issue with Ford’s top-volume dealers as part of a previously scheduled annual gathering.

The topic is also expected to come up at next week’s NADA Show in Las Vegas.

Vadim Makhlis, dealer principal at Monadnock Ford in Swanzey, N.H., said he’s glad Ford wants dealer input before making final decisions but is concerned about how much the changes will cost and whether it’s something customers actually want.

“I love the concept but am anxious to see how it plays out,” he said. “Given Mr. Farley’s leadership the past few years, I do believe if they’re going in this direction, it must be what the consumer wants.”

Jared Allen, spokesman for the NADA, said dealers are excited about Ford’s plans.

“Franchised dealers are all-in on EVs and incredibly excited about the dozens of new EV models that are arriving in dealer showrooms – especially those, including Ford vehicles, that are designed for mass-market buyers,” he said in an e-mailed statement.

“Dealers are absolutely essential to widespread consumer EV adoption, and we are pleased that Ford has reaffirmed that reality and recognized that its franchised dealer network is a clear competitive advantage and crucial to its success as an EV manufacturer. We look forward to having productive conversations with Ford over the next few months about the details of this announcement.”

Although Ford legally has no other choice, both Makhlis and Hovik are encouraged that the automaker is committed to utilizing its retail network in the future.

“We feel the Ford distribution model will beat any direct-sales model,” Hovik said. “We have so many advantages that those that enter into the fray with a direct model do not have. The key will be to accentuate the advantages we have but be willing to modernize in other ways so we can compete.”