Thursday, July 7, 2022
News Ford’s CEO wants His Company to Follow Tesla and Sell Cars Online...

Ford’s CEO wants His Company to Follow Tesla and Sell Cars Online for a Fixed Price

Ford could turn to a direct sales business model, similar to Tesla.

  • The CEO thinks direct sales are the way of the future

  • The company’s dealership network would still be used but in a different way

  • This comes after many dealers have been reprimanded for marking up new cars to cash in on the pandemic and its effects

At a recent conference, Jim Farley, the CEO of the Ford Motor Company, said that he believes his company should adopt a direct sales model, similar to Tesla’s.

This is an idea that has been floated by many automakers before, but Ford seems more serious than most on this topic.

According to the CEO, direct sales, where the automaker sells cars directly to consumers without having to go through a dealership, is the way to go for the automotive industry.

In his vision, Farley sees modifications not only to the sales process but also to the vehicle’s delivery to the buyer.

Despite him not mentioning Tesla, it is pretty clear Ford’s CEO wants to emulate what the EV company has been doing since it arrived on the market.

Indeed, Tesla is the only automaker to not have traditional dealerships that buy the cars from the manufacturer before selling them to customers, preferring to keep control over the whole process.

Unlike Tesla, however, Ford currently has a large dealer network that can sometimes hinder the company, but it can also offer many advantages, notably the ease of service when something goes wrong with the vehicles.

Ford’s CEO is aware of this and his vision doesn’t call for an elimination of the dealerships, but rather a transformation. According to him, existing dealerships will be able to serve customers better than the centralized Service Center model employed by Tesla.  To prove his point, he said this could allow customers to rent different vehicles for a period of time, so a Mustang driver could rent a truck to tow something or a truck driver could rent a Mustang for the weekend, for example.

This would be beneficial for the company by making it easier to manage inventories and not having to manage a dealer body that can sometimes get out of hand, as was proven by the massive markups some dealerships imposed on new models in the last two years.

In addition, it could be beneficial for the customer as well since this model calls for fixed pricing, meaning that the advertised price is what you pay, without having to negotiate a better deal or risk getting scammed by unscrupulous salespeople.

The automaker has not confirmed it will transition to this new business model, but since the CEO seems fairly passionate about the subject, it remains a possibility.

Trending Now

SRT’s Legendary Hellcat Engine Might Still Have Life Left in it

Rumours suggest that SRT’s got an 850+ horsepower version coming in the near future. It would run on ethanol (E85) instead of 100+...

The Kia Seltos Already Revised for 2023… or 2024!

Kia was a bit late in entering the pocket-sized SUV market. There was the Kia Soul, but its particular format and lack of all-wheel...

An Autonomous Robot Could Charge Electric Cars in Parking Lots Without Fixed Charging stations

EV Safe Charge has been working on a robot name Ziggy since 2019 The robot will navigate to the car whose owner has...

The Toyota Crown Will be Unveiled on July 15

The Crown has been Toyota’s top-of-the-line model in Japan for many years (with the exception of the Century) This model could be sold...

Hyundai Teases Two Upcoming N Cars, One of Which is Electric

The N division makes the sportiest versions of many Hyundai models One of the two new models could be the Ioniq 5 N...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.