Vaughn Wyant, CEO of the Wyant Group in Saskatoon, Sask., said he has heard of pushback from several dealers over the investment Ford is seeking from its retailers.
Ford Canada is negotiating with dealers to determine how much they must invest before being allowed to sell and service electric vehicles.
Mirroring a retail plan in the United States, Ford told its 440 dealers in Canada they must decide by Dec. 16 whether they will enroll in the Model e Certified Elite program, at a cost of about $1.3 million per rooftop, or Model e Certified, at about $560,000. Both programs begin in 2024.
Certified Elite dealers will have first dibs on available EVs, while Certified dealers will “focus on ownership and charging with limited built-to-order sales,” a Ford Canada spokesman said.
About 90 per cent of the investment is charging infrastructure, including DC fast chargers, Ford said.
Certified Elite dealers will focus on ownership, charging and full sales capability through a digital shopping experience on ford.ca. Certified dealers will have limited built-to-order sales.
As of Jan. 1, dealers who choose to not enroll will only be able to sell internal-combustion-engine (ICE) and hybrid vehicles. They will have another opportunity to join the programs in 2027.
Ford Canada stated about 90 per cent of the investment is charging infrastructure, including DC fast chargers that will allow dealers to become part of Ford’s BlueOval Charge Network. EVs require specialized equipment, training and charging infrastructure to support sales, service and ownership for its Model e customers, the company said in an email.
BIG DEAL FOR SMALL STORES
But there’s concern the programs are too costly for small-market dealers, especially when low EV sales make it tougher to recoup the investment.
“I don’t see a big demand in our area,” said Cliff Lafreniere, dealer principal of Pinewood Park Motors in Kirkland Lake, Ont.
“I get two or three inquiries a year. I’ve sold one EV — a [F-150] Lightning.
“The amount of the investment is really the issue,” he said.
“I don’t think dealers are excited about [Ford’s] first position,” said Vaughn Wyant, president of the Wyant Group in Saskatoon, Sask. The group has a Ford dealership in Prince Albert and one in Saskatoon.
With limited charging facilities in Saskatchewan and no provincial purchase incentives, “Electrification is going to be slower to come to a lot of rural dealers,” he said.
Dealers told Automotive News Canada that concerns are being addressed by the Ford Dealers RoundTable Association. Mike Herniak, head of the association, said he was bound by confidentiality agreements regarding negotiations and declined to comment.
U.S. DEALERS PUSH BACK
The pressure to amend the program reflects strong blowback in the United States. Ford recently announced it would extend the original Oct. 31 deadline to Dec. 2 for U.S. dealers to decide on participation.
In October, the Virginia Automobile Dealers Association sent a letter to Ford CEO Jim Farley and other executives asking them to reconsider the program and revise the rules, according to a story in sibling publication Automotive News.
Separately, in late October, a group of executives representing dealer associations in Virginia and 11 other Southern states asked Ford to “reconsider the Ford Model e program as it is currently described,” saying it “includes unreasonable restrictions on dealer autonomy.”
BIG DEALERSHIPS ON BOARD
Meanwhile, some larger dealership groups in Canada say they are ready to buy in.
“I don’t really have a problem with them [the programs] at all,” said Steve Chipman, CEO of the Manitoba-based Birchwood Automotive Group, which owns three rural Ford dealerships in the province and one in Winnipeg.
Although there is no guarantee that investing in the EV infrastructure will guarantee more business, Chipman said, that is the cost of owning a franchise. As Birchwood renovates its stores, wiring for fast chargers is installed, even if the automaker does not yet require it, he said. Birchwood has 24 dealerships representing 22 brands.
Chipman said he is sympathetic to other dealers, especially smaller ones, who have concerns over the cost, because circumstances for each dealership vary.
“Ford has to be open-minded,” Chipman said. “One size doesn’t fit all.”
