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 paceforcing several manufacturers, including Ford, to review their strategy. This change of direction 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 dealers in the United States have signed up for the program.making investments ranging from 457,000 to 1.09 million euros according to estimates. Ford estimates the average investment at around 548,500 euros per dealership.
A decision dictated by market reality
Marin Gjaja, Ford’s director of commercial operations for electric models, justified the decision by stating: “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: – The Explorer, a compact electric SUV
– The Capri, a crossover with a sportier style
– A future electric Puma, replacing the Fiesta
– A more affordable model to compete with the Renault 5 E-Tech and the Citroën ë-C3
This diversification of the range aims to complement the current offer, 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 many automakers to reassessing their EV goals. The move speaks to the complexity of the transition to electromobility and the challenges the industry faces. Ultimately, Ford’s strategic shift illustrates the need for automakers to remain agile in the face of changing market conditions. The move away from the EV-Certified program marks an important step in adjusting Ford’s electric strategy to balance ambition with economic reality.
