Ford discontinues electric vehicle dealership program due to lower than expected demand – One America News Network
OAN’s Brooke Mallory
11:49 AM – Thursday, June 13, 2024
Ford Motor is discontinuing a “controversial” dealership initiative for electric vehicles, which at first required store owners to invest up to $1 million in cash in order to sell EVs.
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Ford CEO Jim Farley launched the “EV-certified” program in September 2022, amidst strong industry enthusiasm for all-electric cars and trucks, limited supply of the vehicles, and a high demand for the vehicles at the start.
However, things have not worked out the way they had anticipated.
Ford and other automakers’ EV sales are increasing, but slower than expected. As a result, “that’s led to automakers delaying or canceling future electric vehicles and investments,” NBC News reported.
“The world has changed,” said Marin Gjaja, chief operating officer of Ford’s Model E electric vehicle sector. “The growth has slowed down.”
According to Gjaja, the Model-e Dealership Program, which employed almost half of Ford’s 2,800 U.S. dealers, is ending in light of the “evolving market and dealer discussions.”
Dealer lawsuits have also been filed against the corporation due to the scheme.
“We think it’s going to help us grow our sales,” Gjaja added.
The amount of money dealers must spend on training, charging, and other EV-related costs will reportedly be less than it was under the previous scheme, which called for investments of between $500,000 and $1.2 million.
However, those early estimates, according to Gjaja, were “exaggerated.” He went on to say that dealers who took part in the entire operation made an average investment of almost $600,000.
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