(WTVO) — Ford Motor Company’s CEO Jim Farley announced Wednesday that the company would move to a non-negotiable pricing structure for its electric vehicles, beginning January 1st, 2024.
“We’re matching these vehicles with a modern and simple customer experience that starts with one major breakthrough, non-negotiable price,” Farley said during the company’s Capital Markets Day presentation.
Farley said the new business model would reduce physical inventory and save the company billions in TV advertising and broadcast media.
According to Motor1, Ford plans to create retail replenishment centers for its Model E division, which will hold several weeks of inventory and be able to deliver to customers within 10 days of ordering.
Ford says the new model will allow customers to order vehicles online or in a dealership.
The company said it is not selling directly to customers like rivals Tesla or Rivian, or even used car retailers Carvana or CarMax, as those purchasing a vehicle will still be buying from a dealer, but possibly without entering a showroom.
In December 2022, Ford asked dealers to agree to become part of the Model E certification system, to be trained on the specifications of electric cars and their charging equipment.
Ford currently sells the Ford Lightning F-150 pickup truck, the Ford Mustang Mach-E, and the Ford E-Transit electric vehicles, with more models on the way.