Earlier this month, Ford made a significant announcement in its drive to affect its lineup and streamline that facet of its enterprise whereas persevering with to construct worthwhile ICE fashions. Basically, Ford shall be splitting its business into two halves: Ford Blue will deal with conventionally-powered fashions and Ford Mannequin e will deal with EVs just like the Mustang Mach-E. CEO Jim Farley defined to business analysts why this move was necessary, and now he’ll need to persuade round 3,100 Ford dealerships in america of the identical. Some are anxious about the price implications of Ford’s new enterprise mannequin.

Basically, Ford is trying to work with sellers to implement adjustments akin to promoting at non-negotiable costs, cutting down amenities, and committing to carrying no stock. These new working requirements are pushed by EV gross sales development. “It is going to be far more environment friendly, much more on-line,” mentioned CEO Jim Farley when talking to Automotive Information. “It is going to be a extremely totally different mannequin.”

In response to Ford, its US-based sellers could have the choice to “opt-in” to promote EVs alongside conventional fashions beneath these new requirements. Sellers that may’t afford to or elect to not promote EVs will nonetheless promote ICE fashions solely. Solely as soon as the principles are finalized will sellers be made conscious of how a lot they’d have to put money into the brand new construction.

“There is a degree of respect and belief that is going to permit us to have these powerful conversations as we transfer into the following world we will transfer into,” mentioned council Chairman Tim Hovik from the Ford Nationwide Supplier Council. “I truthfully really feel we’ve got trustworthy brokers concerned within the dialog. I do not assume there’s hidden agendas.”

As a result of Tesla would not carry new-vehicle stock and sells on to customers, its prices are round $2,000 much less per car than Ford’s. This offers additional justification for Ford switching to an order-only enterprise mannequin.