Major Automaker Throws Hail Mary As It Hemorrhages Cash On Electric Vehicles

Ford Motor Company told dealers on Thursday that it was dropping certain equipment requirements to boost the sales of its struggling electric vehicle (EV) line, according to Bloomberg.

Dealers had previously needed to invest up to $1.2 million in certain equipment like chargers in order to be eligible to sell Ford’s EV line, with the change allowing all 2,800 dealerships with contracts to the company to sell EVs, according to Bloomberg. The changes to the program are intended to boost struggling sales of Ford’s EV models, which has contributed to the automaker taking a $1.3 billion loss on its EV production in just the first quarter of 2024 after selling only 10,000 vehicles.

“The growth has slowed down and we’re getting into the tough innings,” Marin Gjaja, the COO of Ford’s EV unit, told reporters following the announcement, according to Bloomberg. Gjaja said that Ford expects the change will “help us grow our sales.”

The original EV program was started in 2022 and only had around 1,400 dealers enrolled, meaning the company’s EV could not be sold at around half of dealerships, according to The Wall Street Journal.

Ford expects to lose another $5.5 billion on the production and development of its EV line in 2024, with the company’s CEO Jim Farley previously calling it the “main drag” on its 💼Business, according to Bloomberg. The company will now require the installation of two EV chargers costing around $10,000 each at all dealerships, far less than the $100,000 chargers that were part of the previous requirements.