Ford Dealers Asked to Pause Further EV Investments While It Reviews Model e Program
Ford’s EV transition hasn’t been the easiest, but the automaker isn’t the only one in its orbit feeling the heat. The Blue Oval recently asked its suppliers to help it cut costs and announced early on that its dealers would need to make significant investments to continue selling its electric models. Now, the company is telling dealers to pause further investments while it reviews the requirements of its EV certification program.
Dealers wanting to sell Ford EVs under the Model e certification had until June 30 to install Level 2 charging stations, but the automaker’s review is expected to extend through that month. Ford had pulled back on some of the Model e requirements late last year and announced the delay of its three-row electric SUV by two years amid slowing EV demand growth.
Ford CEO Jim Farley was at every one of the 11 meetings, which more than 1,000 dealers attended. Stores were initially asked to have five Level 2 chargers to become certified, but the company’s late 2023 changes cut that number to two. The “elite” program required five Level 3 chargers at the start, but Ford cut that number to three. Employee training benchmarks were also eased as part of the shift.
Though around half of the automaker’s dealer network is enrolled in the program, Ford’s Model e business is on track to lose more than $5 billion this year. It’s now working to regain dealers’ trust, as the program was met with significant pushback, and buyers haven’t been as eager to hop on the EV train as many had hoped.
[Images: Woodsnorthphoto, AroundtheWorldPhotos, Tada Images via Shutterstock]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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When Biden yells "jump" and CEOs ask how high? No common sense anymore.
Imagine we lived in a world where all cars were EV's. And then along comes a new invention: the Internal Combustion Engine.
Think how well they would sell. A vehicle HALF the weight, HALF the price that would cause only a quarter of the damage to the road. A vehicle that could be refueled in 1/10th the time, with a range of 4 times the distance in all weather conditions. One that does not rely on the environmentally damaging use of non-renewable rare earth elements to power it, and uses far less steel and other materials. A vehicle that could carry and tow far heavier loads. And is less likely to explode in your garage in the middle of the night and burn down your house with you in it. And ran on an energy source that is readily extracted with hundreds of years known supply.
Just think how excited people would be for such technology. It would sell like hot cakes, with no tax credits! Whaddaya think? I'd buy one.