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After announcing a controversial electric vehicle certification program in September, Ford revealed this week that only 65% of its dealer body agreed to the new EV rules.
The automaker has faced pressure from many aspects of the auto-community to change the new ruleset, even drawing the attention of lawmakers, such as Connecticut Senator Richard Blumenthal, who suggested the company may be violating FTC regulations.
Among other things, Ford’s EV rules require significant investment from franchised dealers. Those who agree to participate will have to commit a $500,000 to $1 million investment, and install expensive charging-infrastructure at their facilities. Critics of the rules note that the EV market in some states lags far behind the rest of the country, meaning many will receive little to no return on investment until consumer interest grows. Perhaps the most hotly criticized part of Ford’s program is its warning to dissenting retailers that they will be restricted from selling its EV models until 2027.
Meanwhile, the automaker maintains that its new EV rules are necessary to ensure the company remains competitive during the EV transition. Some manufacturers expect the electric car market to be profitable by 2025, and gas-powered vehicles will soon be abandoned. However, Ford’s competitors seem to largely avoid confrontations with their dealers. Some brands, such as Nissan, have announced initiatives to make the transition easier for their retailers.
This Monday, Ford finished tallying its numbers, and determined that 1,920 of its roughly 3,000 dealerships have agreed to the EV rules. This means a third of its retailers won’t be able to sell EVs until the latter half of the decade.
Speaking at the Automotive News Congress on Monday, Ford CEO Jim Farley defended the policy, saying, “There’s always a better way…But I don’t think we’ve really made any big mistakes.”
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