Ford Halts EV Investments for Dealers Pending Certification Program Revisions

Ford asks dealerships to pause EV investments as it revises its electric vehicle certification program based on dealer feedback. New program details will be announced in June.

Ford dealerships across America have been instructed to pause their EV investments as the company makes last-minute changes to its electric vehicle certification program. These adjustments follow feedback from a series of nationwide meetings with Ford dealers aimed at addressing concerns amid a rapidly evolving EV market.

During eleven meetings held in six cities, with participation from around 1,000 Ford dealers, a primary concern was the substantial investment required for EV certification, with some dealerships needing to spend up to $500,000 on training and equipment. This significant financial commitment has made many dealers hesitant, with only about half of them signing up for the Model E program for 2024.

Dealers who had committed to the program were initially expected to complete their investments in the coming weeks. However, Ford has now asked them to delay these financial commitments while the program undergoes changes, which will be announced in June.

Andrew Frick, president of Ford Blue, told Autonews that the company is reviewing feedback and will provide a more informed decision-making process by mid-June. Beyond the EV program, Ford plans to implement immediate, near-term, and long-term changes to simplify various business aspects, such as floorplan assistance and Ford Credit policies. CEO Jim Farley and his executive team participated in all meetings, emphasizing the importance of candid conversations about the business.

The review of Ford’s dealer relationships comes as the company reassesses its EV expansion strategy due to slowing demand. Recent steps to moderate the EV boom include downsizing a battery factory, reducing EV spending, and revising EV production goals for 2024. Additionally, Ford has delayed the release of a planned three-row crossover and a new electric pickup, shifting its focus to more affordable electric options.

These strategic adjustments are intended to align Ford’s EV initiatives with market realities and dealer capabilities, ensuring sustainable growth in the electric vehicle sector.