Ford Re-imagined

Ford model e. Sounds like a car model we’d have expected by now. What you wouldn’t have expected is for that to be the name of the new Ford electric car company. Yes, the blue oval is doing something we haven't seen an automaker do in decades. Instead of consolidating brands, they're creating three new ones: Ford pro, Ford Blue, and the most exciting, Ford Model e. This all falls under the umbrella of the Ford+ plan announced in March of this year. How’s all this going to work? Let’s talk about that.

Ford Pro

Ford pro, as you might gather from the name, is Ford professional. This is probably the least exciting new brand to the public, considering we won't have any access to them. Who will be their customers? Governments and large commercial accounts place fleet orders and buy in bulk. That’s about all we know. In fact, Ford hasn't made any sweeping statements about this new brand other than it supporting the sale of electric and internal combustion vehicles. However, it is a smart move to have a company dedicated to servicing large commercial accounts. Professional companies often have specific needs when placing fleet orders and bring in big revenue by replacing fleets every so often. Keeping them happy is keeping Ford in the money.

Ford Model e

Ford Model e is intended to be the new spearhead of Ford Motor Company (FoMoCo for short). All the fully electric models currently sold by ford that we all know and love, like the Brand new F150 lightning and the Mustang Mach e, as well as future models, are now going to be sold under the umbrella of Ford model e. They promise to have more transparent online pricing practices and will be monitoring dealer markups from Model e dealers. They also promise to bring to life a comprehensive charging network along with future software and technology innovations with Model e, including connected auto technology. Essentially, they're putting all the major engineering and UX and software designers in this new basket. Why would ford go through all this trouble to make a separate brand for electric cars, you might be wondering?

Ford Blue

What if I don’t want an electric Ford yet? That’s where Ford Blue Comes in! Yes, for the time being, if you still want a good old-fashioned internal combustion Ford, Ford Blue will be where you go. Ford Blue is intended to support its customers and Ford Pro and Model e with continued software enhancements and the continued development of models, like the F150, Bronco, Mustang, SUV, and even the continued development of new models! This is a sigh of relief for those who still aren't convinced to make the electric slide to EVs. ICE models are here to stay for the time being, and the models we've all come to know and love are safe. They have also promised to root out waste in the company and strengthen current models. Three cheers for that!

The Stratagem of the switch

Now, to answer our two questions from earlier, How and Why would ford want to do this? The answer comes down to competition. Who would be so big as to get Ford's attention like this? Well, the big T of course! Tesla! And ford has quite the strategy to compete with its new rival.

On September 15th of this year, Ford delivered an ultimatum to its dealers that will ultimately decide their success in this new restructuring. Either pay to join the Model e network and undergo training and outfitting for the new business model or stay in the past and continue selling ICE vehicles as a Ford Blue dealer. Ford Dealers have until October 31st to make their decision to get on board. If they do get on board here’s what they’re getting into.

Ford dealers who decide to become part of the new Ford Model e dealer network have an investment to make. There are two levels of model e dealers in this plan, each with its own requirements and upfront investments.

The first is being Model e Certified, the cheaper of the two investment levels dealers can make. Model e certified dealers will be required to make an estimated minimum $500,000 investment towards supporting an all new electric fleet of vehicles for now and in the future. With this comes the requirement to have at least one DC fast charger to service the public. Another important contingency of this plan is that these dealers will only be given a limited number of retail units per year, meaning they will have to save inventory for their most loyal customers.

The second investment level dealers can opt for is Model e Certified Elite. At this investment level the dealers will be required to install two DC fast chargers, with at least once servicing the public, and possibly even a third by 2026, driving the cost closer to $1.2 million. Elite dealers will also be given a larger number of retail units each year, giving them the freedom to convert a larger customer base to EVs.

So, what happens to the dealers who can’t or don’t want to get on board yet? For now, nothing. The exclusivity of EV sales for Model e dealers won’t begin until January 1st, 2024. In 2025, they will again have the option to join the model e plan, with a new wave of certifications rolling out in 2027. At the very least, this means you can still go to any Ford dealer to buy the full range of products, EVs and all, until 2024. After such time, dealers not certified will become Ford Blue dealers, with no option to sell EVs of any kind.

How does this all help ford compete with Tesla? Having a fast charging station at every ford dealership in the growing electric car market is a HUGE deal. 90% of Americans live within 25 miles or less of a ford dealership. What this means is, best case scenario, if all ford dealers installed fast charging stations, they'd have the most comprehensive charging network in the US almost overnight. The idea of this is that with everyone being so close to a Ford dealer, they would be able to support customers living in apartments or other dwellings with no accommodations for charging, making them the ideal option for an EV.

Another aspect of the Model e plan is that Model e dealers will be required to have transparent pricing. What this means is that a price listed on the dealer website must match or be very close to the price of the vehicle listed online. Ford has mentioned that they'll be watching this very closely, too, and will not tolerate any outlandish markups. This is almost exactly what Tesla does already. Currently, if you buy a Tesla, you place an order online for the vehicle, and the price you see is the price you pay.

Ford Model e, if it is anything like the blueprints laid out for it, will be the most ambitious and innovative car company to exist since Saturn, with big promises of future seeking innovations and no haggle pricing. It still remains to be seen if Ford will outcompete Tesla in the Electric Car market, but if anyone has the innovative repertoire to do so, it would be the Blue Oval.

Chair executive Bill Ford said this about the company's plans: "This isn't the first time Ford has re-imagined the future and taken our own path. We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet."