Giant automakers are accelerating the transition to electrification. Striking statements about EV came from Ford, which divided the company into two to produce electric cars. Ford CEO Jim Farley stated that they will only sell electric cars online at a fixed price.
Ford: Electric cars will be sold only on the internet at a fixed price
Making remarkable statements at the Bernstein Strategic Decisions Conference, Ford CEO Jim Farley announced that they will switch to the online car sales model initiated by Tesla. “We must be 100 percent online at a no-negotiable price. “There will be no EVs in the dealerships, it will go directly to the customer,” he said.
It’s hardly surprising that the auto giant is switching to online-only sales. According to previous reports, Ford estimates it spends $2,000 more per car on delivery than Tesla. While the company said it was a great opportunity for dealers to gain an edge over competitors, it said “standards had to be brutal”.
Electric car manufacturer Tesla, by starting a first, sells its vehicles only on the internet. Although Tesla has retail stores, it does not have dealership services. This reduces the costs in vehicle logistics and increases the profit of each vehicle.
Jim Farley admitted he was surprised after seeing Tesla’s profits last quarter. “When last year’s second quarter snow came out for Tesla, I feel like it completely changed my world. “We can earn more money from electric vehicles,” he said.
Ford CEO Jim Farley also gave interesting statements about advertising. According to Farley, Ford should only run ads that appeal to their interests.
“If you see Ford Motor advertising the Super Bowl for electric vehicles, sell your stock.”
CEO Farley’s comments on electric cars come after Ford announced targets to sell 2 million EVs per year by 2026. The company has announced that it will hire workers, spending $3.7 billion to work at its various assembly plants.
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