Automotive
Amidst the evolving landscape of the automotive industry, a challenge emerges for Ford as only half of its dealerships in america are willing to embrace the sale of electrical vehicles (EVs). In accordance with reports, roughly 1,550 out of nearly 3,000 Ford dealerships have opted out of the substantial investments required to take part in the electrical vehicle market, notably with models corresponding to the F-150 Lightning and Mustang Mach-E.
The hesitancy amongst dealers could be attributed to the numerous financial commitments mandated by Ford’s certification program, potentially exceeding $1 million. This program necessitates dealerships to undergo training and install DC fast-chargers, transforming each sales lot right into a charging location for EV owners. Some dealers express dissatisfaction with these requirements, highlighting the strain they impose on each financial resources and operational logistics.
Notably, because the demand for battery-powered cars experiences a slowdown, exacerbated by persistent high prices, dealers appear more inclined to stick to conventional combustion engines and hybrids. The preference for traditional vehicles is further underscored by their popularity, as consumers cautiously explore ways to mitigate fuel costs without fully committing to electric alternatives.
Ford’s approach to fostering EV adoption has faced legal challenges, with some dealers contending that the certification program violates state laws. The automaker, currently embroiled in lawsuits, plans to appeal these decisions. This legal friction adds to the strain on Ford’s relationship with its dealers, as evidenced by the recent survey where the corporate ranked last in dealers’ trust of their franchises. A staggering 46% of Ford dealers expressed “no trust” within the franchise, signaling a strained partnership.
The challenges will not be limited to dealer reluctance, as Ford grapples with production setbacks and a sales slowdown for its electric F-150 Lightning. The corporate’s decision to cut back production and postpone a $12 billion investment in EV manufacturing reflects the broader industry challenges and the necessity for strategic recalibration.
Source: Business Insider
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This Article First Appeared At www.automotiveaddicts.com
