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Political. Dealerships are an invention of government. Look into the history of auto manufacturers and their relationship with US states. Also, I predict For

Political. Dealerships are an invention of government. Look into the history of auto manufacturers and their relationship with US states. Also, I predict Ford is going to experience some legal difficulties with this. States govern the operation of dealerships, including pricing regulations, and they are not uniform. The dealers themselves are not powerless either, some being large, well heeled enterprises and associations that have fought and won against manufacturers.

mooreds 5y ago
Interesting history here: https://driving.ca/auto-news/news/rearview-mirror-the-evolution-of-car-dealerships https://driving.ca/auto-news/news/rearview-mirror-the-evolut...
cptskippy 5y ago
I imagine that's why they split into two separate companies. They can run the electric business much like Tesla as a competitor to their ICE business and let it slowly die with the dealerships.
- topspin 5y ago
  Many dealers sell products from more than one manufacturer. That affordance is the result of legal battles fought and won by dealerships. There will be few incumbent Ford dealers that won't also sell Ford's electric products, legal fictions notwithstanding. While it is true that Tesla has managed to operate under a double standard, I suspect the entry of traditional manufacturers and dealerships into the all electric market will lead to some resolutions of that. That story is still being written.
  - cptskippy 5y ago
    > There will be few incumbent Ford dealers that won't also sell Ford's electric products Assuming it's an option. The Ford electric company could go the same route as Tesla and dealerships would have the same recourse they have now against Tesla, because it's a new company.
    - topspin 5y ago
      > The Ford electric company could go the same route as Tesla They can try. Unlike Tesla there is a vast number of incumbent Ford dealers with the political pull and legal resources within their states to contest such a scheme.

mooreds 5y ago

Interesting history here: https://driving.ca/auto-news/news/rearview-mirror-the-evolution-of-car-dealerships https://driving.ca/auto-news/news/rearview-mirror-the-evolut...

cptskippy 5y ago

I imagine that's why they split into two separate companies. They can run the electric business much like Tesla as a competitor to their ICE business and let it slowly die with the dealerships.

topspin 5y ago
Many dealers sell products from more than one manufacturer. That affordance is the result of legal battles fought and won by dealerships. There will be few incumbent Ford dealers that won't also sell Ford's electric products, legal fictions notwithstanding. While it is true that Tesla has managed to operate under a double standard, I suspect the entry of traditional manufacturers and dealerships into the all electric market will lead to some resolutions of that. That story is still being written.
- cptskippy 5y ago
  > There will be few incumbent Ford dealers that won't also sell Ford's electric products Assuming it's an option. The Ford electric company could go the same route as Tesla and dealerships would have the same recourse they have now against Tesla, because it's a new company.
  - topspin 5y ago
    > The Ford electric company could go the same route as Tesla They can try. Unlike Tesla there is a vast number of incumbent Ford dealers with the political pull and legal resources within their states to contest such a scheme.