Ford Motor Co CEO Jim Farley said on Wednesday the legacy automaker has a far higher relative price for distribution than electric vehicle maker Tesla Inc.
What Happened
Farley said Ford’s distribution model per unit is $2,000 more expensive than that of Elon Musk-led Tesla and Ford has the potential to reverse those costs.
“The first is the distribution model. We think our distribution model today is about $2,000 per unit, more expensive than Tesla,” Farley told investors at the Alliance Bernstein 38th Annual Strategic Decisions Conference.
“About the third of that is inventory, we have all this inventory sitting around the dealers, in transit, got to get rid of all that.”…