Ford Motor (NYSE:F) – Ford CEO Jim Farley To Meet Dealers Next Week With This Agenda To Challenge Tesla

Ford Motor Company F appears to be intent on capturing the pole position in the electric vehicle industry if reports are anything to go by.

What Happened: Dearborn’s CEO Jim Farley is traveling to Las Vega next week to get the automaker’s dealers to shave off $2,000 from the cost of an electric vehicle they deliver to their customers, Reuters reported.

One of the main meeting agendas would be to discuss new agreements to govern how dealers sell the company’s EV lineups, the report said.

“We are excited to meet next week with our North America dealers to grow and win together,” Ford said, according to Reuters.

Dealers, however, are worried about the chargers they need to install, which can cost as much as $500,000, the report said.

See also: Tesla China’s Strong August Comeback, Rivian To Drive Across The Atlantic, Talent Drain At Lucid: Week’s Biggest EV Stories

Why It’s Important: Farley reportedly said in July that Ford needs to cut $2,000 in selling and distribution costs per vehicle in order to be competitive with Tesla, Inc. TSLA and other EV manufacturers that have a direct sales model.

The Ford CEO sees a $600 to $700 cut coming from adopting a “low inventory model,” which would envisage a customer placing an order and the company shipping it directly to customers, the report said. This would obviate the need of stocking vehicles on dealer lots for weeks or months.

Ford closed Friday’s session down 0.32% at $15.42, according to Benzinga Pro data.

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