Ford’s secret recipe for overtaking Tesla

Ford boss Jim Farley has been talking to dealers about a new strategy to reduce the cost of their electric cars. The brand then wants to be able to beat Tesla at its own game.

Today, all manufacturers must massively electrify their range, while the sale of thermal cars will in any case be prohibited in Europe from 2035, as in California. However, if most brands have at least one electric car, this type of engine is not always very profitable. And not all producers have the same strategy to survive and make more money.

Compete with Tesla

For example, Porsche points out that it is easier to increase the prices of electric cars and thus achieve profitability. An approach not necessarily adopted by everyone, and especially not by Ford. In fact, the brand’s boss, Jim Farley, prefers to take the opposite route by lowering the prices of his vehicles.

Released by the US agency Reuters, the manager actually wanted a few days ago to discuss with his partners and dealers to lower the cost of his electric cars. The goal ? Compete with Tesla, which sells most of its cars online. On the contrary, Ford remains a traditional brand, which still markets its vehicles mainly in concessions. Except it’s expensive.

test-ford-mustang-mach-e-34

Jim Farley wants to cut sales and delivery costs by $2,000 (about the same amount in euros) for each electric vehicle to better compete with his California competitor. Several routes were then considered, such as delivery directly to the customer’s home. This would prevent the vehicle from being stored for weeks or days at the dealership, which averages between $600 and $700 per car.

Other measures have been announced while the boss was speaking a few days ago. In particular, he unveiled the brand’s new commercial strategy, based on five pillars, namely training, recharge, fixed pricing, customer experience and digital experience.

A radical strategy

And the least we can say is that the dealers are under pressure. Indeed, and as explained InsideEVs, the latter have until October 31 to decide whether they want to continue selling electric cars, including the Ford Mustang Mach-E. If they wish to continue, they will have to comply with the new fire requirements and will have three options to do so.

Either they stop selling the manufacturers’ electric cars, or they will Model E Certified or Certified Elite dealer. In order to achieve one of its two statuses, the points of sale must then be equipped with a fast charging station, made available to customers.

Ford F-150 Lightning
Ford F-150 Lightning

To become a Model E Certified Elite, concessionaires must invest between 1 and 1.2 million dollars to develop their services and infrastructures. A price shown at “only” $500,000 for the Model E Certified, period. In any case, part of the expenses will be borne by Ford. Note that this 2nd group will not have the right to sell as many electric cars as the first. Finally, concessions that do not comply with this strategy will no longer have the right to market electric models for at least three years. A radical choice of the manufacturer’s brand.

For lower prices

In addition to reforming its sales system, Ford also wants to offer more affordable models, to attract as many customers as possible. This is especially the reason why the American company plans to launch a completely new, more affordable electric car, below the 25,000 euro mark. It could then compete head-on with the future Tesla Model 2, but also with the Volkswagen ID.2, which is planned for 2024.

For its part, the future creation of Ford will not arrive until 2026, while the brand works on the development of cheaper batteries in collaboration with Volkswagen. Other models are also planned, including an electric version of the Puma, which could arrive in 2025.

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