Ford MotorMarc McEver, dealer, was stunned to learn about the plans for automaker. separate its electric vehicleRestructuring of legacy and other businesses under the CEO Jim Farley.

Olathe Ford Lincoln owner, near Kansas City in Kansas, received the news at around 6:30 am CST Wednesday. She “called Detroit” in less than 15 minutes to get an understanding of what was happening.

McEver stated, “When it first was announced, I felt pretty backward.” “It was the first time I had ever shaved.”

McEver is excited to announce the plan after having spoken with Ford representatives. McEver’s dealership specializes both in fleet and commercial vehicles.

“After talking with some of Ford’s people, I feel a lot more well,” he stated. All this is quite ingenious.”

Ford executives will be listening to McEver’s concerns Saturday at a meeting with franchised dealers of the company at the National Auto Dealers Association Show, Las Vegas. Each year the event draws thousands of franchise dealer, which includes many of Ford’s approximately 3,100 retailers.

Wall Street and the auto industry were stunned by Farley’s announcement last week. announced the separation plans.These were, he said, “one the greatest changes” in more than a century of history for the over-century-old firm. Dealers “specialized” in specific vehicles.

Farley indicated that McEver, for instance, may be a dealer who specializes in fleet vehicles. Others might only deal with electric vehicles and sales to retailers.

Farley stated, “We are going to place a bet on dealer franchise systems.” It’s different than the other bets I have heard. We’re going do it by asking them for their specialties.

Farley’s plans will add significant pressures to franchise dealers and make it difficult for them to adapt to new technologies. This is what many Wall Street analysts see as a problem for legacy automakers like Ford, when it comes down to electric vehicles. The system can lead to inconsistent experience and lower profits for vehicle owners than EV startups. TeslaThey are the owner of their own stores that sell direct to consumers.

Those selling EVs will need to use new methods, such as online ordering, a promise to have no inventory, and transparent prices. Many dealers are taking advantage of high vehicle inventories and high demand in order to raise prices.

Farley explained that in the coming 60 days, Farley will be talking with all dealers worldwide and creating a short list of standards for an experience unlike Tesla.

Ford, and legacy automakers alike are contractually bound to sell via franchised dealers. There are laws in many states that prohibit automakers from selling directly to customers.

Over the years, franchise dealerships have struggled to maintain the original selling system. Dealers are seen as vital partners by traditional automakers when it is time to service vehicles or get involved with the community.

Based on dealer size, the changes could lead to upgrades that cost millions of dollars. These changes could also force dealers to make sales to publicly traded, larger companies like AutoNation Lithia Motors.

In the midst of difficult times like the coronavirus pandemic, consolidation has been a prominent trend.

Ryan LaFontaine is the CEO and co-owner at LaFontaine Automotive Group, Michigan. He says he is excited about EVs but wants to learn more about Ford’s requirements and plans.

He said, “It is a major change but it will be something we embrace and are excited about.” Although it makes sense, dealers are still left to grasp the impact.

LaFontaine claimed that the company has “all in” on EVs, with three Ford dealers and 26 other Michigan stores.

This company sold almost 44,000 vehicles in 2013 and has spent close to $1million on its transition to electric cars. He has franchises with a variety of companies, including Toyota and Detroit’s automakers. EV start-up Polestar.

It’s an all in play. “All manufacturers are basically taking all of their portfolios to be electric vehicles, today and in the near future,” he stated. You’re saying no to Ford, or that you believe they are right, if you refuse to adapt. Ford is not the only manufacturer.