Ford will challenge dealers with lower selling costs than Tesla

Ford will challenge dealers with lower selling costs than Tesla





By Joseph White and Ben Klayman

DETROIT (Reuters) – Ford Chief Executive Jim Farley will travel to Las Vegas next week to try to persuade dealers to shave up to $2,000 off the cost of delivering an electric car to a customer.

The automaker said one of the main topics of the meetings will be discussion of a new agreement that will govern how dealers sell Ford’s growing line of electric vehicles.

Farley told analysts in July that Ford needs to cut $2,000 per vehicle in sales and distribution costs to compete with Tesla and other electric car brands that sell directly to consumers.

About a third of those savings could come from what Farley called the “small stock model,” where customers order a car and Ford ships it to the customer, rather than keeping cars on dealer lots for weeks or months.

Ford declined to comment beyond saying “we are excited to meet next week with our North American dealers to grow and win together.”

Dealers said they expect Ford to invest more in charging stations and other equipment to support EV customers.

A key issue will be how quickly dealers will have to install the chargers, which can cost up to $500,000.

(By Joe White and Ben Klayman)