Ford Motor Company to begin online, fixed-price, no-haggle sales for electric vehicles (updated with video!)


According to CEO Jim Farley, Ford will move to 100% online, fixed price, and delivered (to your door) sales for its electric vehicles.

CEO Jim Farley says direct delivery and no bargaining is necessary for the brand’s EV business. These transactions will be done online, leaving out car dealerships. Ford is looking to replace some of the dreadful dealership experience with buying online. That’s right, no price to negotiate for vehicles. Unfortunately, it is only for their electric vehicles. I have a hunch that if it proves popular, it might move to all of their vehicles.

Ford is following Tesla’s model for buying cars, but there are bound to be differences. Dealerships will still exist, but they will have to adhere to an entirely new model.

Charging the Mustang Mach-E
Images: Ford

Farley used Target and Amazon as examples.

“I think for retail, we have to… It’s kind of like what happened between Amazon and Target. The target could have walked away, but they didn’t. They’ve bolted onto an e-commerce platform, then they use their physical store to add groceries and make returns much easier than Amazon. They use their expertise as a physical retailer to their advantage, but they are modernizing e-commerce so it would be very easy to do business with them. This is exactly what we need to do on the retail side. We need to move to non-negotiated pricing, we need to move to 100% online. The vehicle, there is no inventory, goes directly to the customer, collection and delivery 100% remotely. But then we have this opportunity to use our physical presence to surpass them.

Ford

Over the past two years, consumers have been hit with unreasonable dealer mark-ups. Not all dealerships do this, but some do. In many cases, this falls to the level of unscrupulous tactics. Many consumers have noted that dealerships have raised prices to such an extent that it is almost impossible to purchase a vehicle. This is for the majority of buyers out there. Only a privileged few can afford these ridiculous prices. Ford knows that, and maybe that’s one of the reasons they’re changing the game plan.

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