Ford to address dealer concerns regarding splitting its EV and legacy businesses
Key takeaways:
- Ford will help dealers’ concerns over its recent conclusion separate its EV and legacy gas-vehicle business.
- “I was freaking out before I had even shaven that day,” one dealer informed CNBC.
- Ford executives will talk Saturday during a meeting of the firm’s franchised dealers at the National Auto Dealers Association Show in Las Vegas.
Ford to split its EV and legacy gas-vehicle business:
Ford Motor dealer Marc McEver was taken back when he heard regarding the automaker’s strategies to split its electric vehicle and legacy businesses as part of a restructuring under CEO Jim Farley.
The owner of Olathe Ford Lincoln near Kansas City, Kansas, heard the news about 6:30 a.m. CST before Wednesday and “was calling Detroit” within 15 minutes to attempt to understand what was happening.
“When it was first disclosed, I was pretty set back,” McEver stated. “I was freaking out before I had even shaven that day.”
But after talking with Ford officials since then, McEver, whose dealership specializes in retail and fleet vehicles, is now keen regarding the plans.
“After talking to several of the people at Ford, I feel a lot better,” he stated. “All this is rather ingenious.”
Soothing problems of dealers such as McEver is predicted to be essential for Ford executives Saturday during a meeting of the firm’s franchised dealers at the National Auto Dealers Association Show in Las Vegas. The event draws thousands of franchise dealers yearly, including numerous of Ford’s approximately 3,100 retailers.
Farley drove waves across Wall Street and the automotive industry the previous week when he declared the separation plans. He called them “one of the most significant changes” in the history of the almost century-old firm, including dealers “specializing” in specific vehicles.
Farley said some dealers such as McEver may specialize in fleet vehicles, while others only do electric cars or sales to retail clients.