Ford boss Jim Farley has spoken to dealers about a new strategy to reduce the cost of its electric cars. The brand then wishes to be able to beat Tesla at its own game.
Today, all manufacturers must massively electrify their range, while the sale of thermal cars will, in any case, be prohibited in Europe from 2035, as in California. But if most brands, therefore, have at least one electric car, this engine is not always very profitable. And not all manufacturers have the same strategy to get by and make more money.
COMPETE WITH TESLA
Indeed, Porsche, for example, points out that it is easier to increase the prices of electric cars and thus increase profitability. An approach not necessarily adopted by all, and especially not by Ford. Indeed, the boss of the brand, Jim Farley rather, wishes to take the opposite route by lowering the prices of his vehicles.
Relayed by the American agency Reuters, the leader indeed wanted, a few days ago, to discuss with his partners and dealers to lower the costs of his electric cars. The goal? Compete with Tesla, which sells most of its cars online. On the contrary, Ford remains a traditional brand, which markets its vehicles mainly in concessions. Except it was expensive.
Jim Farley wants to reduce by 2,000 dollars (about the same amount in euros) the costs of sale and delivery for each electric vehicle to better compete with its Californian competitor. Several avenues were considered, such as delivery directly to the customer’s home. This would prevent the vehicle from being stored for several weeks or days in the dealership, which costs, on average, between 600 and 700 dollars per car.
Other measures have been announced, while the boss spoke a few days ago. In particular, he unveiled the brand’s new commercial strategy based on five pillars: training, charging, fixed prices, customer experience, and digital experience.
A RADICAL STRATEGY
And the least we can say is that the dealers are under pressure. Indeed, and as InsideEVs explains, the latter have until October 31 to decide if they wish to continue selling electric vehicles, particularly the Ford Mustang Mach-E. If they wish to continue, they will have to comply with the new brand requirements and have three options.
Either they will stop selling manufacturers’ electric cars or become Model E Certified or Certified Elite dealers. To obtain one of its two statuses, the points of sale must then be equipped with a fast charging station, made available to customers.
To become Model E Certified Elite, dealers must invest between $1 million and $1.2 million to upgrade their services and infrastructure. A cost displayed at “only” 500,000 dollars for the Model E Certified, period. In any case, part of the expenses will be borne by Ford. Note that this 2nd group will not have the right to sell as many electric cars as the first. Finally, dealerships that do not adhere to this strategy will no longer have the right to market electric models for at least three years. A radical choice of the manufacturer’s brand.
TOWARDS LOWER PRICES
In addition to reforming its sales system, Ford also wants to offer more affordable models in order to attract as many customers as possible. It is in particular for this reason that the American firm is planning to launch a brand new, more affordable electric car below the 25,000 euro mark. It could then compete for head-on with the future Tesla Model 2, but also with the Volkswagen ID.2 scheduled for 2024.
For its part, the future creation of Ford will not arrive before 2026, while the brand is working on developing less expensive batteries in partnership with Volkswagen. Other models are also planned, including an electric version of the Puma, which could arrive in 2025.