- Ford’s RRC experiment aimed to improve EV distribution efficiency but ultimately failed to deliver.
- In October, Ford started to pay dealers $1,000 for every EV ordered through one of the hubs.
- Customers could only view available EV inventory through Ford’s website, limiting buying options.
Ford’s ambitious experiment with Rapid Replenishment Centers (RRCs), which aimed to change how unsold electric vehicles were stored across the US, is officially over. After a few months of what can generously be called a trial run, the automaker has decided to pull the plug. Why? Well, Ford has a laundry list of reasons, but the short answer is that things didn’t exactly go according to plan.
The Idea Behind the RRCs
Launched in May 2024, the program aimed to streamline Ford’s EV distribution, starting with the F-150 Lightning. The goal was straightforward: by bypassing the traditional dealership lot, Ford could cut costs, improve inventory management, and, ideally, make its distribution process more competitive. In other words, Ford was hoping to level the playing field with EV front runners like Tesla.
Read: Ford Gives Dealers Up To $22,500 To Push F-150 Lightning Sales
According to Autonews, Ford’s plan was to store unsold EVs at 21 RRCs across the States. These centers would serve as hubs, from which vehicles would be shipped to dealerships when an order was placed. Dealers could get the F-150 Lightning delivered within two weeks, allowing for a quicker, more efficient process. And in a bid to incentivize the dealers, Ford even offered a cash bonus. In October, they started paying dealerships $1,000 for each F-150 Lightning they ordered through the RRCs, with a cap at $22,500 per dealer.
However, while recently speaking with dealers at the NADA Show, Ford said it’s discontinuing the program and will return the electric truck to a more traditional wholesale model.
The Hiccups That Stopped Ford in Its Tracks
A key problem with the program is that consumers were only able to see Ford’s available EV inventory through its website. This meant buyers couldn’t see models on individual dealer sites or on platforms like Autotrader and Cars.com. Although this problem was eventually addressed, some dealers still struggled to obtain window stickers for the available F-150 Lightnings, and many couldn’t stock enough demo models for customers to compare different trims and packages.
In other words, the whole sales experience became less flexible and more cumbersome, not exactly a win for the customer.
Ford’s Mike O’Brien, senior director of retail network and sales strategy, pointed out that the goal was always to improve the customer experience. “Our intent all along was to better serve the customer,” he said. “We think the pilot, from an operational perspective, was a big success. That being said, we listen to our dealers. There’s been a lot of shifts in the marketplace. It is a little tricky to have two different [sales] methodologies.”
The Dealers’ Verdict
As expected, Ford’s dealers weren’t exactly thrilled with the RRC experiment. Eddie Stivers, chair of Ford’s dealer council, acknowledged to Auto News that the pilot had “not turned out the best.”
“The [rapid replenishment centers], the entire time, were a pilot,” he added. “Some pilots work, some don’t function. We as dealers should be applauding Ford for trying something new but being willing to recognize when it didn’t work out as theorized.”
At the end of the day, Ford is reverting to a more traditional wholesale model for the F-150 Lightning. As much as they’d like to reinvent the wheel (pun intended), it looks like they’ll have to stick with what they know—for now, at least.
