Ford is being forced to change its electric roadmap by canceling its EV-Certified program for dealers just two years after it was launched, a move that reflects the struggles automakers are facing with slower-than-expected growth in electric vehicle sales.
A strategic turnaround in an uncertain context
The electric vehicle market is experiencing a slowdown in 2024, contrary to initial expectations. Sales continue to grow, but at a slower pace, forcing several manufacturers, including Ford, to review their strategy.
The change of course comes after other big names in the industry, such as General Motors, Mercedes and Cadillac, have also had to adjust their plans in the face of this new market reality.
The 'EV-Certified' program: a significant investment abandoned
Launched in September 2022, Ford's 'EV-Certified' program aimed to prepare dealers for the sale of electric vehicles. It required significant investments to create dedicated spaces for electric models, separate from the rest of the range.
About half of Ford's 2,800 U.S. dealers have signed up for the program, making investments ranging from an estimated $500,000 to $1.3 million. Ford estimates the average investment per dealership is about $700,000.
A decision dictated by market reality
Marin Gjaja, Ford's director of commercial operations for electric models, justified the decision by saying: “The world has changed. Growth has slowed down.” This realization reflects the challenges facing automakers in their transition to electric.
The suspension of the program will now allow all dealers to sell electric vehicles under the same conditions as the rest of the range, with significantly lower required investments.
An evolving product strategy
To boost its sales of electric vehicles, Ford is banking on new launches:
โ The Explorer, a compact electric SUVโ The Capri, a crossover with a sportier styleโ A future electric Puma, replacing the Fiestaโ A more affordable model to compete with the Renault 5 E-Tech and the Citroรซn รซ-C3
This diversification of the range aims to complement the current offering, centered on high-end vehicles such as the Mustang Mach-E and the F-150 Lightning.
A challenge shared by the automotive industry
Ford's decision comes amid a broader shift in focus from automakers to electric vehicles, reflecting the complexity of the transition to electromobility and the challenges the industry faces.
In conclusion, Fordโs strategic shift illustrates the need for automakers to remain agile in the face of market changes. The abandonment of the EV-Certified program marks an important step in adjusting Fordโs electric strategy, which seeks to strike a balance between ambition and economic reality.