Carmaker Ford is to sell its electric vehicles (EVs) exclusively online and for a fixed price, according to USA Today, quoting CEO Jim Farley. In a major departure from current practice, vehicles will be delivered directly to the buyer, with no dealer involvement in the sale.

Farley reportedly told Bernstein’s Annual Strategic Decisions Conference, “We’ve got to go to non-negotiated price. We’ve got to go 100 percent online. There’s no inventory (at dealerships), it goes directly to the customer. And 100 percent remote pick-up and delivery.”

Dealers’ physical locations could give the company a competitive advantage, added the CEO, but only following significant changes.

The move comes as Ford seeks to streamline its distribution and marketing outlay. USA Today reports that according to Ford’s own projections, it spends an eye-catching $2,000 more per car on distribution than Tesla, an industry leader in online and fixed-price sales.

The figure includes one-third on inventory sitting on dealer lots, and $500 to $600 per vehicle on public advertising, added the newspaper.

Farley said that Ford also plans to significantly cut outlay on advertising its EVs.

It is not yet clear whether the carmaker plans to adopt the new sales method for its gas-powered vehicles too.

Ford did not respond to the AIM Group’s request for comment.

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