Half of Ford's US dealers decline EV certification, risking future profits
Dealers wishing to sell Ford's electric models in the U.S. must join the "Model e Certified" or "Model e Certified Elite" program. This certification grants them certain advantages but also demands the creation of a suitable infrastructure for selling and servicing electric vehicles, including installing charging stations.
The cost of these requirements varies according to each dealership's location. Nevertheless, Ford estimates that dealers must invest between $500,000 to $1.2 million. The first certification phase concludes at the end of 2023, and Ford has compiled data from all of their American dealerships.
From this data, it's clear that about 1550 dealerships, approximately half of the total U.S. dealer network, have continued selling only gasoline and hybrid cars for now. They've decided not to make the necessary investments at this time.
Ford has allowed dealers to make this decision independently. This approach isn't universal among all brands, however. For instance, Buick gave its dealerships an ultimatum — convert to EV service or forfeit their license.
Despite Ford granting their dealers freedom of choice, many were dissatisfied with this move. Some dealers protested, with a few even filing lawsuits. In response, Ford reached a settlement resulting in a reduced requirement for charging stations at dealerships, effectively decreasing potential costs.
Dealers who have chosen not to pursue certification for now won't have the opportunity to do so again until 2027. The second phase of the certification process starts then, coinciding with Ford's next electric model push. By then, the sale of gasoline and hybrid cars alone could become substantially less profitable due to the growing number of these models. As a result, many dealerships might shift their approach.
