DETROIT (Michigan News Source) – After announcing Ford’s desire to prioritize vehicles not running on gasoline in the summer, a recent announcement from the company revealed that more than 2/3 of dealers plan to go all in on electric vehicle (EV) sales according to CEO Jim Farley.  

The company revealed to the Detroit Free Press that 1,920 Ford dealers have enrolled in the voluntary Model e Program for the 2024 to 2026 period. 

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Those interested in EV will soon be able to distinguish EV dealers by signage denoting a location’s Model e Certified Elite or Model e Certified status.  The dealers will also provide fast chargers for EVs with a low battery. 

The majority of dealers who said yes, 1,659 dealers, elected to be Certified Elite with full sales and service capability while 261 chose to be Certified with full service capability, limited sales and lower investment cost.  

The upfront investment could have been one of the main deterrents to dealers who considered but declined to join the EV pact.  Those who buy into EV sales, must invest an estimated $500,00 to $1.2 million to construct the adequate infrastructure to receive the special certification status.  For example, if dealers do not have charging stations, then they cannot service electric vehicles.  The company will open a second certification period but not until 2027 following the release of the new Ford EV lineup.   

“So far, we’re No. 2 in the U.S. in EV and 70-plus percent of customers are new to us,” Farley said. “We focused not so much on the numbers. It was more like, do we have coverage in Orange County? Do we have coverage in the right parts so people don’t have to go too far?”

While the majority of dealers have chosen to change for EV vehicles, several states are taking an active stand against the transition to the new technology.  Many believe that the new rules violate franchise laws; according to Insideevs, complaints from Arkansas, Illinois, and New York have already been sent to Ford.  Some lawmakers and lawyers are already weighing in on the new policies too. 

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“Every dealer under the current franchise agreement has a right to every Ford vehicle manufactured with that name plate on it, to include the newest EVs,” a New York lawyer Rich Sox said, “They have a right to their fair allocation of those vehicles based on their market size, sales history, etc. This is about making sure all dealers have access to EVs and not being pigeonholed into one of three categories the program arbitrarily created.” 

U.S. Senator and lawmaker Richard Blumenthal D-Connecticut wrote to Farley last week voicing his concerns. 

“It is unreasonable to expect that all dealers, in just a few months, are able to commit to hundreds of thousands of dollars in investments that could take years to see the returns of,” he wrote. “Fewer Ford Model e dealers lessens competition and consumer choice. Consumers should not be punished for Ford imposing on its dealers tight deadlines requiring high-cost investments.”

Farley on Monday responded to the concerns and said the company would make changes if needed, but said he feels the automaker didn’t make any major mistakes in how it developed and rolled out the program.

“We’re big boys and girls. If we get something wrong, we’ll make an adjustment,” he said. “We don’t think we have anything wrong yet. But it’s going to be a long journey.”

The commitment to investing thousands or millions of dollars comes as a prerequisite to continue or begin selling EV in the future.