Amid upcoming changes to its EV certification program, Ford has instructed its dealers to halt investments to allow for adjustments in response to the evolving electric vehicle market. Ford’s CEO, Jim Farley, announced that 1,920 dealers will join the EV sales program by December 2022, prompting a reevaluation of the company’s electric vehicle strategy. With several dealers opting out of the program and enrollments for 2024 at just over 50% of the network, Ford is navigating shifts in the market by easing requirements and extending installation deadlines for chargers.
What?
Ford is pausing dealer investments in its EV program to accommodate forthcoming changes in response to the rapidly changing EV market. The company plans to update dealers on modifications to its electric vehicle initiatives and aims to align its dealer network with its evolving strategies. Amid concerns about the shifting landscape of EVs, Ford is delaying charging requirements and financial commitments for dealers.
Why does it matter?
The decision for Ford to ask dealers to hold off on EV investments underscores the dynamic nature of the electric vehicle industry and the need for flexibility in planning. By adjusting its requirements and allowing for more time to make informed decisions, Ford is striving to better position itself and its dealers in the evolving market. The move reflects Ford’s commitment to adapting to changes in consumer demand and technological advancements in the realm of electric vehicles.
How is it going to shape the future?
Ford’s decision to pause dealer investments in EVs sets the stage for a more strategic and aligned approach to electric vehicle sales. By seeking feedback from its dealer council and implementing changes based on market dynamics, Ford is positioning itself to navigate the rapidly evolving EV landscape. As Ford aims to make its EV business profitable and introduce more hybrids in the interim, these adjustments represent a forward-thinking strategy to ensure competitiveness and sustainability in the electric vehicle market.
Source: https://electrek.co/2024/05/21/ford-asks-dealers-pause-ev-investments-changes-coming/