Ford outlines EV investment structure for its dealers as it chases Tesla-like profit

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Interesting that they're giving dealers the option to opt-out of selling EV's vs the $500k/$1M investment in order to sell EV's.

Looks like Ford has realized they need to retain dealer service network.
 

Wrenchturner44

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Agreed. I am not sure how Ford has structured their agency agreements, but I have heard with GM, if you are an existing dealer, and want to expand, GM will offer you agencies in your existing geography or in other desirable (as expressed by you) areas where the existing agency is either closing or wants to sell ownership of said dealership and assets.
 
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I hope this doesn't happen so fast that it creates a crazy market for used gas vehicles. That's all I can afford for the rest of my life. 😁
 

UncleDave

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People buying Teslas are virtue signaling , we are cool ,we are saving the Earth look at me ! I am not sure the Ford name plate would signify virtue !

I'd say " some" vs "people".

Many would probably virtue signal with other brands they've grown up with if they had the same or equal charging and or performance - but they dont or cant deliver anyway - so tesla wins.
 
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People buying Teslas are virtue signaling , we are cool ,we are saving the Earth look at me ! I am not sure the Ford name plate would signify virtue !
How many Tesla owners have you talked to?
Many owners think their cars are cool, as does much of the public overall. Do you think people buy BMWs, Porsches, Corvettes, etc because they need them? Bro-Dozers?
Save the earth? There are those owners as well, but those are more Bolt buyers.

I bought ours as a gift to my wife, who is very technical; she is in charge of world wide computer operations at a $15B Silicon Valley high tech.
 
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People buying Teslas are virtue signaling , we are cool ,we are saving the Earth look at me ! I am not sure the Ford name plate would signify virtue !
So are you saying they wouldn't if the vehicle had a Ford, or Dodge badge? What about Cadillac badge? I suspect the animosity is due to the fact that Tesla is California borne and that state, due to it's size and unique geography, tends to wag-the-dog in terms of vehicle emissions for the rest of the county.
 
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Let me rephrase. Ford I doubt would have the prestige of the Tesla and its image. Chevrolet vs Cadillac. That said I have purchased 4 Ford Vehicles in the past 23 years. I am a low end type guy !
 
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Let me rephrase. Ford I doubt would have the prestige of the Tesla and its image. Chevrolet vs Cadillac. That said I have purchased 4 Ford Vehicles in the past 23 years. I am a low end type guy !
Mustang Mach-E is kinda the new Tesla around here (not really but they are all over the place). Tesla was the new Corolla around here. The Taycans are the new big dog car.

The Plaid is the OMG! vehicle, both Model S and especially Model X. Everything else pales. The exotics stay outta their way.
Our little Model 3 is kinda old skool nowadays...
 
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Wrenchturner44

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Hey Gents, Can we stop with the "brand bashing"? Everyone buys a vehicle for different reasons. It is their money and their decision that they in turn have to live with. All brands have their give and takes. Let's not judge our fellow BITOG members because they drive, want, or desire one brand over another. Yes we can voice opinions about brand experience and reliability based on our personal experiences, but to say that all of brand X is bad is not being logical.....but emotional.
 
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"Chases" Tesla-like profits is the operative word. Tesla realized early on that having a conventional dealer network was a huge money drain. As is advertising. But their almost 28% profit margin is also due to their manufacturing methods,

Ford will have to do a lot more than restructure the way they sell vehicles to go from their current 12% margin to double that. It will take many, many years and a lot of capital. And capital isn't cheap these days if you have to borrow money because there isn't enough profit in your product to begin with to pump back into the company.

For those that think at some point Tesla will be eclipsed by other EV makers, I wish them luck. In fact I think at some point Tesla will become generic for EV just like everyone calls facial tissue Kleenex or a photocopy a Xerox. You want a new cellphone ? It's going to be an Apple or a Samsung, pretty much. (It might get interesting if the rumored Tesla cellphone comes to market). In a few years the majority of EV sales will most likely be through Tesla and a couple of competitors, not among 6 different makers excluding the small market for Taycans and low production ultra luxury EV's.
 
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I personally feel this is Ford shooting its own foot. There are plenty of rural areas (lets say rural Wyoming, Montana, etc.) where a Ford dealer may sell 5-10 EV's per year, does not justify a half million investment in a DCFC that will probably collect dust. Meanwhile the GM dealer next door does not have such requirements to be allowed to sell an EV, seems to be an exercise in losing market share to GM.
 

Wrenchturner44

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Pezzy, I agree with you.....but economics of those small transactions for Ford do not matter. They will be happy to continue to sell those dealers F150's all day long and other ICE vehicles that they may still offer. It is kind of similar to the Corvette analogy. Most people may not know that all Chevrolet dealers cannot sell Corvettes. Some are excluded from doing so based on sales potential metrics alone.
 
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Pezzy, I agree with you.....but economics of those small transactions for Ford do not matter. They will be happy to continue to sell those dealers F150's all day long and other ICE vehicles that they may still offer. It is kind of similar to the Corvette analogy. Most people may not know that all Chevrolet dealers cannot sell Corvettes. Some are excluded from doing so based on sales potential metrics alone.
Did not know about the Corvettes - that is even more wild. You pay all this $$$ for a franchise but can't sell certain cars of that marque because you don't meet some silly requirement or fork even more $$$ over to the brand.
 

Wrenchturner44

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Did not know about the Corvettes - that is even more wild. You pay all this $$$ for a franchise but can't sell certain cars of that marque because you don't meet some silly requirement or fork even more $$$ over to the brand.
Yes, it is called LMA or "local market allocation". Quick story......I bought my Buick Encore from a dealer that sells both GMC and Buick brands. They sell far more GMC trucks than they do Buick cars. I was able to negotiate a very favorable price on the Encore due to it being an "in stock" inventory unit. The business manager of the dealership told me that they are obligated to "move so many Buicks" in order to get the GMC pickup truck allocation to support their sales volumes for those units. In other words, they were willing to take less profit on my Encore sale in order to make it up on the sale of a GMC pick up........go figure.
 
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