Ford Aims to Use a Hit EV to Change the Way Its Cars Are Sold

Hot Selling EVs Give Ford Leverage to Alter its Sales System.

- Michael Coates

Ford has one of the hottest new models on the planet — the all-electric F-150 Lightning fullsize pickup. You wouldn’t think they would be looking for new ways to sell it. Historically, auto companies looked the other way when their dealers took advantage of the limited availability of popular vehicles to add markups that went right to the dealer’s bottom line. The parent company might make public statements denouncing the tactic, but it has long been accepted as part of the “free market” franchise system, where dealers as independent businesses could add profit to popular vehicles while sometimes taking a hit on slower-moving models that the manufacturer may insist they carry.

Enter the 21st century paradigm shift, where an upstart — electric vehicle maker Tesla — tore up the playbook. Tesla jettisoned the franchise system of independent dealers and set up a direct-to-consumer sales model that allowed consumers to order and pay for vehicles directly. Vehicles were built to order and delivered directly to the consumer, though the wait could sometimes stretch for many months. The business model was predicted to collapse when Tesla hit high sales volume, but Tesla has passed the million vehicle a year sales mark and shows no signs of changing.

Vehicle service for Teslas was handled in a similar fashion. Factory-owned or authorized shops would perform service or repairs. Sometimes a mobile unit might bring the service directly to the customer. This system’s bottom line — some of the highest customer satisfaction ratings seen in the industry.

New Ways for New Vehicles