Ford Cancels Model E Program, Letting All US Dealers Sell EVs

[flrsb62]

Other brands have already started installing fast DC chargers at dealerships. With the volatility of the EV landscape right now, it is hard to see where anyone is going . I hope Ford knows what they are doing. None of us knows what is going on between these guys behind the scenes.

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[MurphysLaww]

Dealerships, AND fiddle falling around with getting to a cheap EV to sell is what very well could put these guys into bankruptcy. Dealerships, you almost can't blame because they didn't give them a vehicle to sell to the masses. All those, little Fords in Europe? All going to be BYD's soon. That is a significant amount of revenue they are going to lose, and I'm not sure there is any way they can keep it from happening. Whoever in the US get's an EV close to $20k before rebates, wins... Or survives.

China's just sitting and laughing at us while they build their middle class with manufacturing cheap EV's like we once did building cheap ICE vehicles. Economically, China is going to blow by us so fast it's going to make our heads spin. Then we'll be trying to figure a way out like Russia when most of our revenue comes from a dying industry.

 

[RocketGhost]

My dealer talked about the change when I bought my truck a month ago. It's a very small rural dealer. My truck was an unsold 22 demo. He told me the reason they didn't sell it was that they felt screwed over by Ford by the dealer requirements to sell EVs. Despite being in a deep red region, he said they are excited about EVs, partly because the dealer is within commuting distance from Blue Oval City. But he said they just couldn't afford the investment that Ford wanted and felt that some requirements were onerous and unnecessary. In particular they didn't like the changes in the pricing model for EVs. Ford told me they have to get their current EV inventory (my truck and a Mach E) off the books before they will send them EVs under the new model that mirrors the traditional sales model. So I came in at just the right time when they were motivated to sell.

I really think Ford's mistake was asking too much of dealers. I've heard they were asking for separate showrooms and sales staff, and even things like a particular brand of forklift to remove batteries. I think they should have just changed the pricing and purchasing process as a first step. No negotiation, no bogus addons, no sales pitches from the finance guy, etc. Just let me buy a car with an app please. Let the financial investment be limited to service equipment and training. I don't think dealers would have revolted as much.

 

[davehu]

Personally, I think the biggest loss to consumers from this decision (and ultimately FORD) is that dealerships will probably no longer be required to install public chargers in order to sell electric vehicles. I'm guessing that the requirement to install a DCFC was one of the things that dealerships pushed back on, given the up-front costs of installation.

However, I, for one, was really looking forward to every Ford Dealership having a fast charger. If every dealership had a fast charger, it would do a lot to reduce range anxiety and improve sales of electric vehicles.

Maybe I'm wrong. Maybe dealerships will still be required to install DCFC. But if not, I think Ford shot themselves in the foot with this decision.

dealers were never required to have DCFC's. Level two, yes, and as noted in the press release they still are required to have 2 level two chargers. doesn't appear they have to be public however.

 

[TaxmanHog]

Following up from our previous note regarding the Dealer Engagement Tour, today we are sharing changes to make electric vehicles more widely available across America by expanding EV sales and service to all 2,800 of our U.S. dealers starting July 1.


With expanded resources and training, all dealers will be able to sell and service electric vehicles and support Ford customers. This means more than 90% of Americans will live within 20 miles of a Ford dealer that can sell and service EVs such as the Mustang Mach-E, F-150 Lightning and E-Transit.

Here’s what you need to know:

• To help reduce barriers to entry for both our dealers and our customers, Ford will discontinue the voluntary Model e EV Program from July 1, 2024, effectively opening EVs up to the entire Ford dealer network – doubling to over 2,800 the number of Ford Dealers that can sell and services EVs.
• Before the end of 2024, Dealers who were not part of the voluntary Model e Program will have access to EV inventory and will be visible on Ford.com, giving customers greater choice of dealers and EV stock.
• For a Dealer to sell and service EVs, they must demonstrate fundamental EV Competency, which most already meet. EV Competency includes:
• 
  

  • Staying current on existing EV Training Planners across all roles to ensure EV knowledge and employee safety​
  • Having the hardware and equipment elements needed to safely and effectively perform EV service work
  • Installing two Level 2 chargers & three NEMA plugs​

While the voluntary Model e Program is being discontinued, the experiences that were part of the Program have had a highly beneficial impact on customer satisfaction. Ford recommends that Dealers continue to provide customers with these elevated experiences.

Ford is committed to EVs, and is looking forward to partnering with dealers to increase EV accessibility to customers across the U.S., regardless of where they live.

 

[ryun]

This decision to remove barriers to selling Ford EVs confuses me. Aren't the dealers that pushed back on the requirements the same ones that said "EVs don't sell. They just sit on our lots."?

Ultimately this is just going to hurt consumers that buy from a dealership that isn't even remotely equipped to service these vehicles.

 

[F150ROD]

My dealer talked about the change when I bought my truck a month ago. It's a very small rural dealer. My truck was an unsold 22 demo. He told me the reason they didn't sell it was that they felt screwed over by Ford by the dealer requirements to sell EVs. Despite being in a deep red region, he said they are excited about EVs, partly because the dealer is within commuting distance from Blue Oval City. But he said they just couldn't afford the investment that Ford wanted and felt that some requirements were onerous and unnecessary. In particular they didn't like the changes in the pricing model for EVs. Ford told me they have to get their current EV inventory (my truck and a Mach E) off the books before they will send them EVs under the new model that mirrors the traditional sales model. So I came in at just the right time when they were motivated to sell.

I really think Ford's mistake was asking too much of dealers. I've heard they were asking for separate showrooms and sales staff, and even things like a particular brand of forklift to remove batteries. I think they should have just changed the pricing and purchasing process as a first step. No negotiation, no bogus addons, no sales pitches from the finance guy, etc. Just let me buy a car with an app please. Let the financial investment be limited to service equipment and training. I don't think dealers would have revolted as much.

I mean the dealers can point fingers all they want but had the EV manual on this forum. Dealers make $10k off each EV sold for doing nothing as most of the purchasers reserved.

What did some dealers do? Added market adjustment and pretty much turned off buyers.

To me Fords mistake was not coming out with a new Ford Focus or Fiesta EV under $40k. The Mach-E should have been a Lincoln and the Lightning should have been treated as an SVT type vehicle.

Just my opinion, and why I am not a Billionaire Auto executive lol

 

[Toby57]

Dealers that said EVs dont sell, they just sit on the lot, are not going to put more on their lots.
If they sell EVs it will be order only. Some dealers may refuse that.
Too many dealers had EVs ordered than refused, so the car set on the lot for over a year.
If no customer interest they are not going to put EVs on the lot.

 

[Grumpy2]

I was told when I bought the Lightning Pro the dealership only really survives on the Service Center. The amount of money from sales isn't enough to pay all of their costs, let alone show a profit.

The dealers service center will basically make no money on any EV sold until after 8 years, since warranty work by the Dealer is reimbursed by Ford on a very strict level. And "service" after that time looks to be either minimal or catastrophic and you will go to a 3rd party shop.

So why would any dealer needing cash flow to survive be willing to advertise, push, and sell EV's?

 

[climateguy]

Farley described Ford's original intention in 2022, quoted in this article: "No more dealer markups: Ford wants to move to online-only sales for EVs: Ford thinks its distribution model costs $2,000 more per car than Tesla's."

"We've got to go to non-negotiated price. We've got to go to 100 percent online. There's no inventory (at dealerships), it goes directly to the customer. And 100 percent remote pickup and delivery," Farley said while speaking at a conference in New York."

A barrier for Ford, according to the article, was/is that "traditional manufacturers like Ford are usually prohibited from selling their products directly to customers, a legacy of fears over vertical integration written into state laws during the early 20th century".

When the EV market was dramatically expanding to the point where Tesla's stock valuation exceeded the combined stock valuation of the top five automakers in the world, Ford tried to force dealers to voluntarily accept this online only purchasing system by telling them that otherwise they would not be able to sell any Ford EVs.

EV sales growth has slowed, so Ford has less leverage in this area . I'm wondering if the online sales model, i.e. the Build & Price, a.k.a. Build & Buy website, will disappear entirely.

 

[COrocket]

I mean the dealers can point fingers all they want but had the EV manual on this forum. Dealers make $10k off each EV sold for doing nothing as most of the purchasers reserved.

What did some dealers do? Added market adjustment and pretty much turned off buyers.

To me Fords mistake was not coming out with a new Ford Focus or Fiesta EV under $40k. The Mach-E should have been a Lincoln and the Lightning should have been treated as an SVT type vehicle.

Just my opinion, and why I am not a Billionaire Auto executive lol

Makes sense since our SUV shopping experience with our local Ford Dealership was downright comical…

My local dealer was demanding $8000 more for a AWD LR Mach-E compared to an equivalent Tesla Model Y ($15,500 difference with the Y tax credit), and wouldn’t take even a penny off the price, so that made the decision pretty easy. Then I’m sure they and other dealers have been whining to Ford corporate that the EVs aren’t selling while they fail to realize that taking a 10% cut of every car sold is no longer a viable business model.

I would have loved to pair a Mach E with our Lightning since I think the product itself is well built - but having to drive out of state to get a fair price on a Lightning and getting priced out of a Mach E locally is exhausting and I fear that Ford is just digging its own EV grave if they continue to rely on the dealership model which clearly isn’t a competitive way of doing business

 

[sotek2345]

I was told when I bought the Lightning Pro the dealership only really survives on the Service Center. The amount of money from sales isn't enough to pay all of their costs, let alone show a profit.

The dealers service center will basically make no money on any EV sold until after 8 years, since warranty work by the Dealer is reimbursed by Ford on a very strict level. And "service" after that time looks to be either minimal or catastrophic and you will go to a 3rd party shop.

So why would any dealer needing cash flow to survive be willing to advertise, push, and sell EV's?

They either have to figure it out, or die off because ICE sales won't be around forever.

 

[RickKeen]

Dealership model big fail is that they are all inherently locked into short term thinking.
They only care about what they sell today, right now.
Easiest sale right now is a proven track record product like an ICE F150, or an ICE Explorer.
No customer education needed. Dealers actually working against the EV sale because its more complicated.

 

[invertedspear]

maybe I misunderstand but isn't this a good decision, more dealers to choose from and go to for repairs

The spin of the article seems to make it sound that way. But in reality, I don't think so. More dealers to buy from, sure, but the dealers that weren't buying into the ModelE program are most likely the ones that resist the shift to EVs in general, so they may have a couple for the "suckers" but they are not going to have a big selection, and they are not going to be very knowledgeable about them, to the point of actively dispensing bad information I'd bet. My nearest dealer was honestly incorrect about several aspects of the Lightning and MachE. I don't think malicious, just bought in to the anti EV hype.

When it comes to service, this is worse. The article says they "must" do certain things, but "most" already do. I don't think this is anywhere close to accurate. The two closest dealers to me don't have an EV certified tech, I doubt they have the HVB equipment, and neither even recognized the NEMA 14-50 plug on the charging cable ("that's some european plug"). But they take in EVs into their service center and let them sit for days until they can borrow a tech from another dealer, or their "most technically savvy guy" takes a shot at it. That guy went on a 10 minute anti-EV rant while I was describing the problem to him. Expect more complaints abotu incompetent service centers. And when someone does take a chance on an EV, that service experience is going to turn them right back to ICE.

 

[GoodSam]

Plug-in Hybrids PHEV will be a way to transition old thinking to new, as there is an engine with spark plugs and oil to service, perfect around town, less range anxiety for trips. With the DCFC and battery problems / babying with a pure EV, a PHEV F-150, F-250, etc would have been great. But so much more complicated that a pure EV, and no frunk! Battery capability and prices are not dropping fast enough to push EVs more.

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