November Newsletter

Another month flies by at a seemingly record pace! It is shocking that we are down to our last two months of 2023. The good news is we all have 60 days to make the most of this year and head into 2024 with momentum on our side.

November brings us the Thanksgiving holiday which makes it a great month to stop, take stock and appreciate all that we have to be thankful for.

At ADS we are all thankful for the successful year we are having, the dealers we get to work with, and the incredible additions we have added to our team. Please take a moment and meet our newest team members to learn a little about them as well as the role they will play here at ADS.

In terms of other industry matters, it is good to know the strike has been settled and manufacturing can resume at the affected plants. Additionally, there is a lot of news coming out about the BEV market and how oversold the hype for electric really seemed to be. It will be interesting to see where the consumers and the industry end up taking the BEV offerings the many manufactures chose to race to market with. There are a few recent articles below which provide some good insight into some of the shift in enthusiasm.

We hope you all have a blessed Thanksgiving!

Gobble, Gobble ‘til you Wobble!

Some shareworthy news items…

UAW reaches deal with GM, ending strike against Detroit automakers

This Is Why Toyota Isn’t Rushing to Sell You an Electric Vehicle

Mercedes says ‘brutal’ EV market will pressure car sales margins

Cox Automotive Forecast: Despite Ongoing UAW Strike, U.S. Auto Sales Pace in October Expected to Increase from September

Events we will be attending:

RVDA – http://www.rvda.org/convention
F&I Product Conference – http://www.fandi-conference.com
NADA 2024 – https://www.nada.org/nada-show

Good luck and Good Selling!

Sincerely, 
Bob and Ryan

Full Newsletter

October Newsletter

A Message From The ADS Team
As we head into the final quarter of the year, many of us begin turning our attention to next years goals, objectives, and planning for our future successes. Although next year is important, and there are steps we can all take to ensure a fast start to the year, we need to be mindful that we still have a full quarter of sales to transact, 2023 goals and objectives to measure, and customer needs to satisfy today… as well as into next year.
 
For many of our dealers, they find the challenge of finishing strong, and starting stronger invigorating and seem to find an extra gear (as we do) this time of year. We know the importance of both, and we work hard to assist our dealers and their teams to make the most of both present and future.
 
One of the ways we do this is by conducting a thorough review and planning session with each of our dealers where we focus on in store profitability, product attachment rates, return of participation premium and individual development plans. This collaborative review adds accountability to all levels as well as pushes all stakeholders to the next level of performance.
 
If you haven’t taken a deep dive into your store’s performance, processes, reinsurance program, or pay plans recently, please reach out to us to conduct an unbiased evaluation and profit analysis so you can be sure you are getting everything your time and capital investment deserves.
 
Be sure to check out the article from one of our wealth management partners, Chris Daizel with London & Capital, as he discusses current markets and future outlooks and how they can affect a dealers trust portfolio. https://advanceddealersolutions.com/2023/10/reinsurance-trust-updates/
 
Some shareworthy news items… Electric cars have a road trip problem, even for the secretary of energy
As EV sales surge and cars get heavier, parking garages will have to change
UAW targets more Ford and GM plants as union expands autoworker strike
September Sales Forecast by Cox Automotive to be Up 13% Year Over Year

Events we will be attending:
 
Live2Lead – https://www.eventbrite.com/e/live2lead-cleveland-tickets-630417905927
RVDA – http://www.rvda.org/convention
F&I Product Conference – http://www.fandi-conference.com
NADA 2024 – https://www.nada.org/nada-show
 
Good luck and Good Selling!

 
The ADS Invitational
 

 
Last month we were excited to host our 3rd annual ADS Invitational at historic Firestone Country Club in Akron, Ohio. We had dealer representatives from across the country join us for 3 days of spirited competition on the golf course. The competitiveness was on full display not only on the golf course, but also at the poker table and bags court! We appreciate everyone taking time out of their busy schedules to spend the time with our team.  

Congrats to Team Mancuso for their victory! 
 

 
AFIP Certification
 

 
The AFIP Certification Program gives F&I professionals the power to sell their products with confidence and authority. Professionals certified through AFIP gain a working knowledge of the state and federal laws associated with the F&I profession, opportunities for continuing development, and higher standing in the industry.

In a continued effort to bring value to Auto, RV, and Powersport Dealers ADS will be hosting an on-site discounted AFIP course to North East Ohio on October 17th – 18th, 2023. 

Interested in AFIP certification? Reach out to an ADS representative about hosting an AFIP course near your location!
 
Sign Up
 

 
In The Community
 

 
Susan G. Komen® Organization
In 1980, Nancy G. Brinker promised her dying sister, Susan, that she would do everything in her power to end breast cancer forever. In 1982, that promise became the Susan G. Komen® Organization and the beginning of a global movement. What started with $200 and a shoebox full of potential donor names has now grown into the world’s largest nonprofit source of funding for the fight against breast cancer. To date, they have invested nearly $3.6 billion in groundbreaking research, community health outreach, advocacy and programs in more than 60 countries. Their efforts have helped reduce deaths from breast cancer by 43% since 1989 and they won’t stop until their promise is fulfilled.
 
Ways to Help
 

 
What We Are Reading
 
This past month the ADS Team enjoyed The Power of One More by Ed Mylett. At it’s core, The Power of One More is about your willingness to do one more rep, make one more phone call, get up one hour earlier, build one more relationship, or do one more thing for whatever your situation calls for. You were not born to be average or ordinary, You were born to do something great.
 

 

 
Live2Lead
 
LIVE2LEAD, hosted by Maxwell Leadership Team Members Kelly Price and Nicole Harwood, will be a day full of personal and professional growth opportunities.

You will hear from some of the most impactful leaders in the country.  Ryan Leak, Marcus Buckingham, Kendra Scott, and of course, John Maxwell!  In addition, Kelly Price, an entrepreneur, Leadership, and Personal Growth Coach, will speak on building a robust culture in your business and personal environment. The event will be held on Thursday, October 12th at Grace Church in Middleburg Heights, OH. 
 


 
Sign Up
 

 
 The Toy Box
 

 

The Batmobile….. There is not much debate for which superhero is best known for their car, it is Batman, bar none. We will be looking at a few models of the Batmobile in this section. 

Classic T.V. Series Batmobile

While it’s never going to seem the most advanced entry considering its origins as a Lincoln concept car circa 1955, the original – the “OG”, if you will – is the favorite of many, and likely will remain so for as long as there’s someone to tell the story of where it all started. Long, bubble-topped – and, for some reason, two-toned — the original on-screen Batmobile (it had taken other forms in the comic books before the TV series debuted in 1966) would go on to be not just one of the most recognizable Batmobiles of all time, but one of the most recognizable movie cars of all time.

The Burton Era

The Burton movies were the first time Batman hit the mainstream since the ultra-campy Adam West TV Series, and they were a whole lot darker – some might even say scary, especially when considering Jack Nicholson’s take on The Joker in Batman – so they needed a ride to match. Enter the Burton-mobile, all long, monochromatic, bewinged and jet-powered. It looked like a cross between a steampunk rat rod and a Lockheed SR-71 spy plane and used a good ol’ Chevy V8 engine for motive force. This may be the most recognizable and celebrated Batmobile of all time, with everything from Lego, to Hot Wheels, to the Grand Theft Auto video game series featuring cameos of it.

Batman Forever

While the Burtonmobile’s cockpit was all dark and ghoulish, it seemed that the crew behind the car for the Val Kilmer-starring Forever film wanted a little more flash than that – or, a lot more. Not only did the dance rave-y blue lighting and crazy glowy wheels (with Batman spinners!) bring a lighter look to the Batmobile, it was also better in-keeping with the ultra-bright makeup and costumes worn by the Riddler and Two-Face villains played by Jim Carrey and Tommy Lee Jones, respectively. It also kind of made it look like what you might see in a comic book because with all that colour, it would jump off the page that much more. Still had the bloody great big batwings out the back, though, and was still powered by a Chevy V8.

Batman and Robin

Remember when we said the Batmobile compliments the Batsuit in any given film? Well, when your Batsuit infamously features nipples, your Batmobile…well…let’s just say they ratcheted the “bling” component up to about 11 for this one. Even more glowy spinners than the Forever car, even spikier batwing tailfins, a quasi-transparent body shell and – just like the TV series car – no more roof all pointed to a Batmobile and Batman character that seemed to kick “stealth” down a few notches on his modus operandi.

The Dark Knight Trilogy

This is kind of where the Batmobile story takes a weird turn; no longer did it look lithe and low, instead appearing enormous and somewhat jeep-like. The weird part is how this particular Batmobile – nicknamed (or is that “officially named”?) The Tumbler wasn’t exclusive to Bruce Wayne himself. For starters, you can see that Wayne Enterprises owned a whole fleet of them to the point where we see Wayne actually having to request one in black from Lucius Fox. Later, in The Dark Knight Rises the “fleet” thing is driven home when we see a number of Tumblers patrolling the Gotham streets. Fun fact: The Tumbler was fully functional and did many of its own stunts during the filming of the movie.

Batman V Superman/Suicide Squad/Justice League

Good for this entry making its way into three movies – but that’s kind of easy to do when so much of what’s seen on-screen is CGI. This particular Batmobile may look kind of like a neat cross between the Tumbler and something a little more lithe and athletic (think quarterback to The Tumbler’s linebacker), but it was huge and quite expensive to build (its Mercedes-sourced 6.3L V8 probably didn’t help on the cost front) – and had to make it through three full-length movies. So, some CGI-derived cost-cutting had to happen. It does have the honour of the only Batmobile to be wrecked by Superman’s claws, though
We would love to hear your fun/historical/interesting piece including pictures and a short bio. Email to: [email protected]
 

 
What’s Cookin’?
 


 

 Skeleton Crudite
Looking to get veggies in on Halloween? Serve it up in this fun way to get everyone to put down the candy for a bit. The ingredients this week are all suggestions so arrange them with the vegetables of your liking and take a look at two different images for ideas.

Ingredients
Bell Pepper
Cucumber
Carrots
Celery
Broccoli
Tomato
Mushroom
Radish
Cauliflower
Zucchini
Olives
Snap peas
Directions
Make sure to slice the bell peppers in long strips. 
For the picture on the right the “guts” is spiralized zucchini and thinly sliced radishes. 
Be sure to serve with a side of ranch or vegetable dip!
 
If you have a recipe to share, please email us a picture of yourself and your recipe at [email protected] and you could be featured in our next newsletter!
 
 

 
Brain Food
 

 

 
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September Newsletter

Labor Day can be a bittersweet time of the year; kiddos going back to school, long summer nights quickly disappearing, and end of the summer selling season can be tough to deal with. Conversely, we are on the doorstep of football season, the Ryder Cup, and for many people, fall weather and leaves changing is their favorite season.
 
Labor Day unofficially bookends the Summer and to some extent, draws most Summer activities to a close. As this Labor Day comes and goes, it certainly brings to mind the current strife the automotive industry and its primary labor force is facing. We are all hoping for a best possible outcome so the wheels (pun intended) of industry can keep churning.
 
Speaking of labor, if you are like most dealers, you have increased your labor rate several times in the last couple years, as well as having your parts cost increase by well over 20% (see article below). For most dealers, their reinsurance representation is not helping them navigate these changes to maintain the desired level of profitability. We have seen dealers, especially with vertically integrated companies, and OEM’s take big hits to their profitability because they are not working for the dealer.
 
Reinsurance is a huge wealth building opportunity, and unfortunately most of the industry is not well versed in how to manage all facets of what goes into a successful, and profitable reinsurance company. Dealers may go months, or even years without seeing a statement, and when they get it, there is a good chance they don’t know everything that goes into it (which by the way is not their fault), that is what they hire a product provider to do.
 
For those reasons, and many more, we are hosting our 2nd Annual Reinsurance Lunch and Learn with Jeremy Elsberry from GPW&A, the leading provider of reinsurance accounting and management for dealers. Please be sure to click the link below to register for the incredibly valuable session.
 
Some shareworthy news items…
 
Soaring Auto Repair Costs Prices Take Significant Jump In A Year
Motor Vehicle Thefts are Up 34% Over Same Period Last Year
Union Alleges GM, Stellantis Not Bargaining in Good Faith 
BMW, Mercedes launch biggest EV push yet to catch Tesla with new models
Voluntary Protection Product Policy Information

Events we will be attending:
 
Live2Lead – https://www.eventbrite.com/e/live2lead-cleveland-tickets-630417905927
RVDA – http://www.rvda.org/convention
F&I Product Conference – http://www.fandi-conference.com
 
Good luck and Good Selling!
Sincerely, 
Bob and Ryan

Full Newsletter

August Newsletter

It is hard to believe that summer is heading into its final weeks! It feels like yesterday when we announced our Summer Tune-Up Series for F&I, Sales, and Fixed Ops Training Classes in conjunction with The Greater Cleveland Auto Dealers Association and the Great Lakes RV Association.

To date we have hosted eight classes which all received incredibly high praise from the attendees and have even heard of some record setting performances taking place upon returning to their stores. We are looking forward to hosting more classes for the dealer community, and going more in depth on our sales and training philosophies. Make sure you follow our LinkedIn page to see updates and testimonials from attendees.

Now that we have surpassed the halfway point of the year and all signs are pointing to a strong finish to the year (2023 U.S. Light Vehicle Forecast raised to 15.4 million from 15.1 million) we want to make sure dealers can take advantage of every opportunity presented to them. Whether it’s reviewing your digital marketing strategy and comparing it to the awesome power of Client Command or looking to establish a Why Buy Here to compete in your market, or if you are looking to maximize your in-store F&I results and reinsurance performance, we at ADS are ready to help you and your teams get to the next level! Reach out to us at [email protected] to learn more about how we are helping dealers exceed their goals.

Some shareworthy news items…

Ford loses billions on EV’s, shifts focus to hybrids

Car repair costs are up almost 20% over the past year. Here are 6 reasons why

Proposed IRS Rules on Microcaptives Defy Precedent and Logic

Used car prices expected to stabilize following major decline in June

New Car Market: Prices Are About To Plummet Due to Oversupply

RV industry steers through post-pandemic US slump Events we will be attending:

Live2Lead – https://www.eventbrite.com/e/live2lead-cleveland-tickets-630417905927
RVDA – http://www.rvda.org/convention
F&I Product Conference – http://www.fandi-conference.com

Sincerely, 
Bob and Ryan

Full Newsletter

June Newsletter

We hope everyone had a tremendous Memorial Day weekend and was able to take some time to thank a soldier or veteran for their sacrifice to this great country!

Now that we have cruised past the ‘Unofficial Start to Summer’, we are nearing, or already in the prime selling season. This is the time of year in our industries when we should be at our best. Websites are being clicked, texts inquiries are being sent, and deals are getting closed. Based upon some recent data (see article below), we should see a fairly strong summer selling season; let’s make sure we are in a position to make the most of our opportunities.

As we travel across the country working with dealers, we have been hearing a common theme; ‘business was great the last couple years, but it seems like we got lazy.’ This has been in reference to lackadaisical sales processes, poor F&I presentations, and a clerk mentality in the service drive. In order to assist dealers with helping their teams ‘get back to the basics’, we teamed up with the Greater Cleveland Auto Dealers Association to provide a Summer Tune Up Series. These one-day sessions will cover the basics of F&I, sales and service. There is no charge if you are a GCADA member, or an ADS customer. Please click the link below to register for these value packed sessions.  

Here’s to making hay while the sun is shining!

Some shareworthy news items…

High Demand Creates High Sales Volume

Ditching the EV???

$5.5 Billion Invested to Handle EV Sales and Service

Good luck and Good Selling!

Sincerely, 
Bob and Ryan

Link to our full newsletter

ADS March Newsletter

The month of March brings with it many changes. As the weather changes and we cruise into Spring, we shift from football to baseball, college basketball morphs into an all-consuming month long, can’t miss event, and of course, selling season! The hope of warmer weather for riding and RV’ing combined with tax return season generally means an uptick in traffic for new auto’s, RV’s and powersports!

This month also marks some significant changes for us at ADS.

We are thrilled to announce our newest partnership with Zurich. We were honored to be selected as one of their ‘elite’ agencies to represent this globally recognized brands market leading F&I products to auto and powersports dealers. “We are pleased to welcome Bob, Ryan, and the entire ADS team to the Zurich network of F&I agencies; and expanding our reach to their auto and powersports dealers,” said Todd Kaminski, Head of Business Development for Direct Markets, Zurich North America. “Their sound business processes, solid dealership relationships and tremendous client satisfaction are key characteristics we look for to help bring Zurich F&I products, training and participation program to new markets.”

This month we will be hosting an AFIP certification course in our new training center. Be sure to check out the link below and register to be part of this invaluable certification.

As many of us are knee deep in tax season, I am reminded how the profit participation landscape has changed over the years. With some of the recent changes in structures, investment options, access to unearned reserves, etc. it may be a good time to evaluate your capital and tax strategy to make sure you are in the best possible position. Please reach out to us to set up a time to for a no obligation review of your current structure to ensure you are in the best position to accomplish your goals.

A few recent headlines for you to peruse…  

Upcoming Events ADS will be attending:

Cleveland Auto Show, OH – www.clevelandautoshow.com
Agent Summit 2023, Las Vegas, NV – https://www.agentsummit.com/register/

We would love the opportunity to connect with you, please let us know if you will be attending.

Link to the full newsletter https://mailchi.mp/advdealer.com/march-newsletter

February Newsletter

A Message From The ADS Team

Just like the industries we serve; ADS has a lot going on and much to be excited about.

In the last month we have hosted the inaugural F&I training as well as a dealer group meeting in our new training facility. The space has exceeded our expectations, and more importantly it has exceeded our dealer’s expectations. Check out the pictures below to see the room in action.

Over the next few months, we will be making several exciting announcements. Stay tuned to hear about our growth and how we plan to provide even more solutions to dealers. Be sure to subscribe to our LinkedIn, YouTube and Facebook pages as well as our newsletter to get the latest updates on what our team is up to.

Here are few interesting items to consider:
January Sales Report
Monthly payments over $1,000 hits record high
Inflation possibly turns to stagflation
EV’s already dropping in price
NADA 2023 Recap – See you Next Year In Las Vegas
Upcoming Events ADS will be attending:

AIMExpo Las Vegas, NV – https://aimexpousa.com/
AFIP Bootcamp Certification – https://afip.com/events-open-boot-camp/ads-onsite-boot-camp
Agent Summit – https://www.agentsummit.com/

We would love the opportunity to connect with you, please let us know if you will be attending.

Sincerely,
Bob and Ryan

Click to view our full Newsletter.

Client Command: Democratizing the Data

In this issue of Business Spotlight, Auto Digest spoke with CEO of Client Command Jonathan Lucenay.

Business Spotlight

Think about the last time that you searched for a new car, what did that look like? Did you search locally, or within your state, maybe even nationwide just to compare prices? The big question is… how many dealerships did you go to? How many salespeople did you try to haggle with? Many of today’s shoppers are looking at deals across the country, online, and are not limited to your town’s “dealership row.” Sometimes the transaction is settled before the shopper ever steps foot in the showroom. Welcome to 2022, folks!

Thanks to innovative companies such as Client Command, the primary market area of many shoppers is now nationwide and easily accessible. Dealerships have adapted to this over the years, and now utilize DaaS (or data-as-a-service) to identify and offer their cars to these interested parties. This could mean a dealership in Lexington, Kentucky sells a car to a young woman in Butte, Montana. This… is cool, frankly… and was not the reality we lived in just 10 or so years ago. For all of the change happening in the automotive powertrain space these days, it seems retail is also feeling pressure from OEMs to perform.

Enter Client Command

In this issue of Business Spotlight, Auto Digest spoke with CEO of Client Command Jonathan Lucenay. A Cumming, Georgia-based firm with around 70 employees that is a powerful player in the dealership marketing world. After 9/11, CEO Jonathan Lucenay began to realize how the market around him was changing and how decisions were often times made emotionally. He decided to let data tell him where and who to market. Fed up with all of the DMS (Database Management System) providers that were still using tech from the 1970s as a base platform, he started to change the industry himself. He literally said that what he saw back in those days “drove me crazy.”

“Dealers were hesitant so I told our initial clients that they could just pay for the results. The impacts were massive!  The results exceeded anything most of those dealers had ever seen. That was 2001.” – CEO Jonathan Lucenay

What do they have that is unique?

The folks at Client Command have been in the industry for over twenty years, originally doing marketing and advertising analysis for seemingly ancient mediums such as radio and TV. Oh, how times have changed. After realizing the demand and opportunity for more targeted ads in the early 2000s, CEO Jonathan Lucenay began to transition his company into this new model. A model that combines inputs from a variety of sources to pair a match. Effective leaders can anticipate change on the horizon, as shown.

Their primary technology, called “Active Shopper Network,” is able to accurately track and identify nearly every person shopping for a car in the United States. The algorithm gets data from over sixty billion URLs every day and has databases to pair all of these searches to the one doing the searches. This includes data from online videos, social media, and email, along with web searches. The company was named Inc. Magazine Best Workplace 2018 and has received the US Business News Technology Elite Award for Best Automotive Marketing Solutions Provider. They do have plans to go international in the future, which will undoubtedly present it’s own new set of challenges for the team.

“The customer expects [the ads] to be real time, but they also expect them to be meaningful.”

Marketing On Easy Mode

When Auto Digest asked Mr. Lucenay what the biggest challenge is for the company, he responded that the hard stuff is what they make look easy. The business is proud to tout that they integrate billions of data sources and sift through it to get actionable data for the local dealership. This data comes from websites, search engines, ISP’s, and a variety of other sources that most of us aren’t even aware exist! Client Command supports dealerships because when they win, Client Command also wins. The have some testimonials on their website from dealers, and it seems the relationship is more of a genuine partnership than a business client. The same statement, however, applies if a loss happens. Good motivation to succeed, right? When prying further, and asking Jonathan what his team is doing to overcome this challenge of educating dealerships on their market, he stated that it’s step by step. It is a process to work with one dealership at a time to prove their value and establish that mutual teamwork. The team works diligently to enhance not just the data, but also the entire platform that is visible to their customers on a weekly basis. These days, it seems there is an algorithm for everything… but not all add true value, and Client Command is cognizant of this.

Enabling Great Talent to Succeed

The culture of Client Command is one that is built around knowing people, both the data and the person… whether this means their business partners or their own employees. The CEO made it clear that although data firms such as his sometimes struggle to maintain a certain level of “normality” in the office, (data analytics is not typically known for it’s engaging and enthusiastic workforce) he used the word “electric” to describe the energy at CC. The company ensures that investments are not only made on the software side of things but more importantly with their human capital. This enables the rest of the team to more efficiently give that ever-so-valuable people knowledge to the dealerships surrounding them.

“Big data is meaningless unless it’s actionable.”

In conclusion, Jonathan and his team firmly believe that although consumers like digital retail, dealers can adjust along with the consumers in the market. His organization is just one example of many in the rapidly-evolving auto sector that are learning to encourage and implement new and sometimes risky ideas. That is how a competitive edge is maintained.

Post was originally published by Auto Digest https://www.auto-digest.com/client-command-democratizing-the-data/.

To learn more about the platform send us a message here.

January 2023 Newsletter

And just like that 2022 has come to an end. This past year will prove to be memorable for the rapid changes in the market, the ongoing uncertainty we find ourselves living in and our continued search for a ‘new norm’.

Let’s now shift our focus to 2023 and how we can make it the best year ever. Despite the predicted retractions and continued headwinds we face, accomplishing even the loftiest of goals is possible if you take the time to go through proper goal-setting actions. There are countless articles and videos on how to set goals and methods to track them. Here are a couple of articles to help you define your goals and establish methods to crush them! Whatever your goals are, we wish you luck in accomplishing them this year.

Here are few interesting items to consider as we head into the new year.  

Upcoming Events ADS will be attending:

RV Supershow Cleveland, OH – https://www.ohiorvshow.com/
NADA Show Dallas, TX. – https://www.nada.org/nada-show
AIMExpo Las Vegas, NV – https://aimexpousa.com/

We would love the opportunity to connect with you, please let us know if you will be attending.

ADS is excited for what 2023 has in store and we know when we keep our dealer’s goals first and foremost, there is no limit to what we can accomplish.

Here is to 2023 being your Best Year Ever!

Happy New Year,

Bob and Ryan

View the full newsletter https://mailchi.mp/advdealer.com/january-newsletter.

Ford CEO says 65% of U.S. dealers agree to sell EVs under company’s investment programs

  • About 65% of Ford dealers have agreed to sell electric vehicles as the company invests billions to expand production and sales of the battery-powered cars and trucks, CEO Jim Farley said Monday.
  • Ford offered its dealers the option to become “EV-certified” under one of two programs — with investments of $500,000 or $1.2 million.
  • Ford, unlike crosstown rival General Motors, is allowing dealers to opt out of selling EVs and continue to sell the company’s cars.

DETROIT – About 65% of Ford Motor’s dealers have agreed to sell electric vehicles as the company invests billions to expand production and sales of the battery-powered cars and trucks, CEO Jim Farley said Monday.

About 1,920 of Ford’s nearly 3,000 dealers in the U.S. agreed to sell EVs, according to Farley. He said roughly 80% of those dealers opted for the higher level of investment for EVs.

Ford offered its dealers the option to become “EV-certified” under one of two programs — with expected investments of $500,000 or $1.2 million. Dealers in the higher tier, which carries upfront costs of $900,000, receive “elite” certification and be allocated more EVs.

Ford, unlike crosstown rival General Motors, is allowing dealers to opt out of selling EVs and continue to sell the company’s cars. GM has offered buyouts to Buick and Cadillac dealers that don’t want to invest to sell EVs.

Dealers who decided not to invest in EVs may do so when Ford reopens the certification process in 2027.

“We think that the EV adoption in the U.S. will take time, so we wanted to give dealers a chance to come back,” Farley said during an Automotive News conference.

Ford’s plans to sell EVs have been a point of contention since the company split off its all-electric vehicle business earlier this year into a separate division known as Model e. Farley said the automaker and its dealers needed to lower costs, increase profits and deliver better, more consistent customer sales experiences.

Farley on Monday also reiterated that a direct-sales model is estimated to be thousands of dollars cheaper for the automaker than the auto industry’s traditional franchised system.

Wall Street analysts have largely viewed direct-to-consumer sales as a benefit to optimize profit. However, there have been growing pains for Tesla, which uses the sales model, when it comes to servicing its vehicles.

Ford’s current lineup of all-electric vehicles includes the Ford F-150 Lightning pickup, Mustang Mach-E crossover and e-Transit van. The automaker is expected to release a litany of other EVs globally under a plan to invest tens of billion of dollars in the technologies by 2026.

Originally posted by CNBC.