Ford's Experiment with EV Distribution Hubs Has Concluded | Carscoops

      Ford is reverting the F-150 Lightning to its conventional wholesale model.

      Ford's Rapid Replenishment Center (RRC) initiative aimed to enhance the efficiency of EV distribution but ultimately fell short.

      In October, Ford began compensating dealers with $1,000 for each EV ordered through one of the hubs.

      Customers were restricted to viewing available EV inventory exclusively on Ford’s website, which limited purchasing choices.

      Ford's ambitious project with Rapid Replenishment Centers, intended to improve the storage of unsold electric vehicles across the U.S., is now officially concluded. After several months that can be considered a trial, the automaker has chosen to discontinue the program. The reasons are numerous, but the concise answer is that things did not unfold as planned.

      The Concept Behind the RRCs

      Initiated in May 2024, the program aimed to simplify Ford’s EV distribution, beginning with the F-150 Lightning. The objective was clear: by circumventing the traditional dealership lot, Ford hoped to reduce costs, enhance inventory management, and ultimately create a more competitive distribution process. Essentially, Ford aimed to compete more effectively with leading EV manufacturers like Tesla.

      According to Autonews, Ford's strategy was to house unsold EVs at 21 RRCs throughout the country. These centers would function as distribution hubs, from which vehicles would be shipped to dealerships upon order placement. Dealers could expect deliveries of the F-150 Lightning within two weeks, facilitating a quicker, more efficient process. To further motivate dealerships, Ford even provided a financial incentive, starting in October, with $1,000 paid to dealers for each F-150 Lightning ordered through the RRCs, allowing a maximum of $22,500 per dealer.

      However, during discussions with dealers at the NADA Show, Ford announced the termination of the program and the return of the electric truck to a more traditional wholesale model.

      Challenges That Halted Ford's Progress

      A significant issue with the program was that consumers could only access Ford’s available EV inventory via its website. This limitation meant that buyers could not check models on individual dealer sites or platforms like Autotrader and Cars.com. Although this issue was eventually resolved, some dealers continued to face difficulties in acquiring window stickers for the available F-150 Lightnings, and many struggled to have enough demo models for customers to evaluate various trims and packages.

      In simple terms, this rendered the entire sales experience less flexible and more challenging, which was not favorable for customers.

      Mike O’Brien, Ford’s senior director of retail network and sales strategy, emphasized that the primary aim was always to enhance the customer experience. “Our intent all along was to better serve the customer,” he stated. “We think the pilot, from an operational perspective, was a big success. However, we take our dealers' feedback seriously. There’s been significant changes in the market. It’s somewhat complicated to have two different [sales] methods.”

      Dealers' Opinions

      As anticipated, Ford's dealers were not particularly pleased with the RRC initiative. Eddie Stivers, chair of Ford’s dealer council, admitted to Auto News that the pilot did not achieve the desired results.

      “The [rapid replenishment centers] were always meant to be a pilot,” he explained. “Some pilots succeed, others don’t. Dealers should commend Ford for attempting something new while also recognizing when it hasn't worked as planned.”

      Ultimately, Ford is returning to a more conventional wholesale model for the F-150 Lightning. While they may desire to innovate, it seems they will need to rely on established methods for the time being.