Ford Remains Committed To Online Non-Negotiable EV Pricing

Ford Remains Committed To Online Non-Negotiable EV Pricing

Ford CEO Jim Farley elaborated on a shift to online vehicle sales with non-negotiable prices and remote delivery earlier this month.

Automotive News reports that after a number of dealer meetings, Ford executives clarified what this means for the dealership model and adjusted their outlook on the matter, stating that the majority of their goals have been misconstrued.

Despite the online business model, dealers will still be able to set their own prices and have physical stores, as per Ford's original plan for EVs to have non-negotiable prices.

Andrew Frick, Vice President of Sales, Distribution, and Trucks for Ford Blue and the company's primary dealer liaison, has met with 300 dealers in 25 lengthy meetings to discuss the EV selling standards. 

He clarified that Ford will not eliminate physical stores or the ability to purchase an electric vehicle from a dealership.

Frick told Automotive News that when Farley stated "100% online" last week, he was referring to "a single point of entry, whether you're physically in a dealership or at home." We want to capitalize on their physical existence and service capacity.

Customers will still be able to purchase EVs from a dealer, but the ordering and construction processes will be completed online to eliminate the need for price haggling, thereby reducing dealer markups. 

Numerous details of the business model are not yet finalized, so the discussions and negotiations are still in their infancy. It remains unclear how Ford will implement non-negotiable pricing and how much dealers will be required to invest. 

Charlie Gilchrist, dealer principal at Gilchrist Automotive in Texas, expressed optimism about the process after attending three meetings over the past few months.

"They're essentially starting from scratch to determine how we can provide these vehicles to our customers in a more effective and efficient manner," Gilchrist told Automotive News.