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Ford wants to remove middlemen from EV sales structure

Ford wants to remove middlemen from EV sales structure

Ford is moving to remove middlemen running dealerships from its EV sales chain by moving everything online completely.

“We’ve got to go to non-negotiated price. We’ve got to go to 100 percent online. There’s no inventory (at dealerships), it goes directly to the customer. And 100 percent remote pickup and delivery,” Ford CEO Jim Farley said.

Dealerships had taken advantage of the supply problem caused by the global chip shortage to hike prices by thousands of dollars, according to an Arstechnica report. As if they have not done enough to damage the relationship between customers and producers all these years.

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The goal now is to ensure that there is a direct line between Ford and its EV end users. This strategy is similar to what Tesla did at the early stage of its existence. However, it may be a whole lot trickier for Ford to achieve this because of vertical integration state laws surrounding traditional manufacturers operations.

Yet, Farley is ready to give it a try because the current model costs it more money on ads, inventory and distribution.

“Our model is messed up. We spend $600 or $700 on the vehicle to promote it, and we spend nothing post-warranty on the customer experience. The problem is, on a parts business, which historically has been very profitable, we only get, maybe, only 10 or 20 percent of the customers come back to us,” he complained.

There is no detail on what the car company boss will do to achieve this or just how long it would take.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.