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A week ago, Ford announced it would split its business into two separate divisions covering various aspects of the auto industry. Ford Blue will develop future combustion engine powered vehicles, while Ford Model E will develop fully electric vehicles. While the latter will have access to the automaker’s high-volume manufacturing capabilities, its establishment will reportedly prompt some changes in the way Ford sells cars to customers.
According to a new report from Automotive News, the company Blue Oval will work on a new operating standard for EV sales. They will combine the company’s more than a decade of expertise in selling and shipping cars through dealerships with knowledge from direct sales startups in the industry. The exact terms will be discussed with dealers over the next few months but Ford executives have reportedly outlined some of the rules they want to include in the new plan.
Perhaps the most exciting part of the new strategy will be forcing Ford dealers to stop carrying new vehicle inventory and instead switch to an order-only sales model. This is essentially identical to the way Tesla sells cars and Ford CEO Jim Farley believes this move could help automakers lower the price of their electric cars. Also, retailers will be required to sell EVs at MSRP. However, Ford may retain physical support for its customers for the duration of their new vehicle ownership.
“We’ve been asking ourselves, how do we not only spend $2,000 but actually become better than them?” Jim Farley said in an interview. “The lack of physical support for customers is a very critical issue for them. Not everything can be done remotely. We can do things Tesla can’t.”
Automotive News‘ the report also said Ford would give nearly 3,100 US dealers the opportunity to sell electric vehicles in addition to traditional combustion-powered cars. In order to be approved, they must meet certain conditions and, if they choose not to sell the EV or can’t afford it, they can continue to sell combustion-only vehicles.
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