Ford CEO wants to end haggling for electric cars — and two-thirds of dealers agree
The program has met some opposition already, including a lawsuit from New York dealers filed last week. They say the EV sales requirements set by Ford violate franchise laws with illegal pricing requirements and unlawful allocation systems.
Ford has said it believes the EV sales program does not violate any franchise laws, and Farley said Monday the company is trying to include its dealers in its EV future, unlike startup rivals like Tesla, Rivian, and"We're betting on the franchise system," Farley said."We want to work with our dealers, but there are certain things our customers want that are non-negotiable."
To meet some of those"non-negotiable" customer needs – like no-haggle pricing – Ford told dealers earlier this year to invest in a new EV sales structure or be left behind. Following an announcement in September, dealers had until October 31 to decide if they would invest up to $1.
There are two tiers to the EV sales program: Certified Elite and Certified. In the elite track, dealers are required to invest up to $1.2 million in facility upgrades and training for staff. On the certified track, the investment requirement is lower – $500,000 – but caps allotted EV sales at the dealership to 25 per year.
Of the 1,920 dealers who have signed on, a majority have chosen the Certified Elite track, Farley said.
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