https://techcrunch.com/2022/09...timatum-on-ev-sales/

Ford has given dealers in its 3,000-strong network an ultimatum and a deadline: If they want to sell EVs, they’ll need to invest their own money into the endeavor, meet other selling standards and add fast charging at their locations.

Dealers will have until October 31 to decide to buy in. If they do, they’ll be authorized to get in on Ford’s Model e business starting January 2024. Those who don’t can stick with Ford Blue, the automaker’s internal combustion engine unit.

The new standards, first hinted at during the company’s second quarter earnings call, are part of a strategy Ford shared Tuesday at its national dealer meeting in Las Vegas. CEO Jim Farley told analysts back in July that Ford would need to cut $2,000 per vehicle out of selling and distribution costs in order to reduce overhead, boost profits and compete with Tesla, which sells direct to consumers. At the time, Farley also outlined Ford’s plan to move to a low-inventory model, DTC model.

Ford is positioning the move as a chance for dealers to empower themselves and increase sales dramatically. The automaker will use about 90% of the dealers’ investments to build out charging infrastructure including DC fast chargers that will allow dealers to be part of the Blue Oval Charge Network Map, according to a Ford spokesperson, who noted that dealers will own and earn revenue from chargers.

Ford dealers will have two entry levels — Certified and Certified Elite — as well as two entry points — 2024 and 2027 — to choose from if they want to become a Model e dealer, according to a Ford spokesperson.

Certified dealers will shell out an upfront initial investment of about $500,000 and focus on ownership and charging, with limited, built-to-order sales. Elite dealers will be asked to invest $1.2 million to handle ownership, charging and sales with stock on the ground, demo units and visibility on Ford’s website.

In order to provide a more elevated service and smoother transaction experience for the customer, Ford also outlined new Model e selling standards:

Ford will train specialized EV teams across sales and service.

All Model e dealers will need to offer charging to support sales and service, and have at least one public-facing DC fast charger available on the Blue Oval network.

E-commerce will be available with “transparent, non-negotiable pricing for EVs.”

Customers will be able to access physical experiences, like test drives, trade-ins, mobile servicing and pickup and delivery.

Dealers will need to support customers with digital experiences like software and subscription products.

Ford is currently selling the Ford F-150 Lightning pickup, the Mustang Mach-E crossover and the e-Transit van, with more EVs expected to join the automaker’s lineup in the coming years. In May, Ford increased its electrification spend to $50 billion by 2026.

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sure have that "we are getting screwed" feeling

GM is doing the same

Invest in EV's or die

Seriously considering selling my F. Great. consistent dividend over the years/decades, but I can't see it continuing. At around $12/share, seems like not the worst time to do so in general.

quote:

Originally posted by architect:
Seriously considering selling my F. Great. consistent dividend over the years/decades, but I can't see it continuing. At around $12/share, seems like not the worst time to do so in general.

Of the past 15 years F has suspended dividends 9 years.

Ford is pissing away good money on electric vehicle factories. Money they don't have. On cars they can't make. They just raised the prices of the eMach and Lightning by $6K-$8K because the price of batteries has increased.

Lithium batteries show negative economies of scale. The more lithium you need, the more it costs to obtain it.

Gm is doing it too.
"General Motors is recalling all 2017-19 model year Chevrolet Bolt electric cars because they may pose a fire risk."
https://www.usatoday.com/story...evy-bolt/6295136002/

Well, if dealers invest and it turns to shit, they can always wait for the government bailouts.

I bet dealers will try to figure out what nearby dealers are doing and if they can be the only one
within a certain radius to have EVs they'll go all in for the premium dealership.

quote:

Originally posted by architect:
Seriously considering selling my F. Great. consistent dividend over the years/decades, but I can't see it continuing. At around $12/share, seems like not the worst time to do so in general.

My typical could of, would of, should of; Didn't sell at the end of last year when it was over $25.50.

EV's will ruin the American auto industry and our lives.

RMD

quote:

Originally posted by rduckwor:
EV's will ruin the American auto industry and our lives.

RMD

It will, but not because of what most think. Much of 'American Auto Industry' is based on assembly & EVs are much easier & cheaper to assemble. Much of it can be sub-assembled in lower labor cost areas/countries.

What if no one wants EV’s? Does that mean there is a federal bail out on the horizon?

It is obvious dealerships, based on their fancy new buildings and prime real estate, make a good bit of money.

But I have no idea how much of a burden is this ask from Ford? Is $500k or $1.2m a simple stroke of a check and the dealership doesn't even notice a change in the bank account? Or is that something they need to plan for and will write off / down the expense of a multiple year period, praying they make back income from it, and be in trouble if they do not?

A few states are going to force people into EVs. More will probably follow. Depending how the politics run in the next few elections, the Feds may go along with this at some point. What people actually want may not be terribly relevant.

quote:

Originally posted by nhtagmember:
What if no one wants EV’s? Does that mean there is a federal bail out on the horizon?

Akio Toyoda seems to have a clue. FoxNews link

Now if he can beat that truth into some heads....

quote:

The president of Toyota Motor Corporation said this week that adhering to California’s plan to ban gas emission vehicles will be "difficult" to achieve, and battery powered cars will take longer to phase in than the "mainstream media" believes.

"Realistically speaking, it seems rather difficult to really achieve them," Toyota Motor Corporation President Akio Toyoda told reporters through a translator on Thursday discussing California’s new mandates.

"But just like the fully autonomous cars that we were all supposed to be driving by now, BEVs are just going to take longer to become mainstream than the media would like us to believe," Toyoda told car dealers at the event.

Missing the dealers investments in electronic diagnostic equipment for Service. Whatever Tesla has in their service bays, everyone else is gonna need too. I heard that Toyota is having some problems in their new Tundras with that 12 inch screen in the middle of their dash. They are building so many "services" into the menus and sub-menus. Too complex.

quote:

Originally posted by nhtagmember:
What if no one wants EV’s? Does that mean there is a federal bail out on the horizon?

The government has made mandates to make sure it happens. By 2040 no more passenger vehicles will be ICE and most manufacturers have said they will be all EV or hybrid passenger vehicles by 2035 because that’s where most other countries have their mandates.

The biggest problem which is already proving itself in Europe is that the cost of electricity is going to go up drastically. When gas goes up drastically you can combine and limit your driving but when electricity prices go through the roof you are talking about way more aspects of your life including, in most cases, heating your house.

quote:

Originally posted by nhtagmember:
What if no one wants EV’s? Does that mean there is a federal bail out on the horizon?

You need to ask yourself how government will react to your disinterest in EV's. Will they subsidize the automakers in the hope that when your current IC vehicle dies you'll switch to EV, or will they double down and crush any and all IC options you might have forcing you into something you don't want. If I had to bet, my money would be on that latter.

quote:

Originally posted by 1s1k:
The government has made mandates to make sure it happens. By 2040 no more passenger vehicles will be ICE and most manufacturers have said they will be all EV or hybrid passenger vehicles by 2035 because that’s where most other countries have their mandates.

The saving grace of these mandates is that government is run by complete morons who can't get the simplest of things right, so these large societal jumps are thousands of miles above their ridiculously inadequate abilities. There will be no elimination of IC vehicles by 2035 because....surprise....it will not be possible due to a total lack of infrastructure to support them. This liberal circle jerk isn't going to result in anything but chaos, taxpayer spending and debt, and rampant stupidity, insuring IC vehicles will be with us for a long time into the future.

quote:

Originally posted by BBMW:
A few states are going to force people into EVs. More will probably follow. Depending how the politics run in the next few elections, the Feds may go along with this at some point. What people actually want may not be terribly relevant.

quote:

Originally posted by nhtagmember:
What if no one wants EV’s? Does that mean there is a federal bail out on the horizon?

then it seems to me it would be time to 'force' the politicians into a different line of work

quote:

Originally posted by 1s1k:


By 2040 no more passenger vehicles will be ICE and most manufacturers have said they will be all EV or hybrid passenger vehicles by 2035 because that’s where most other countries have their mandates.

There's not enough lead, lithium and cadmium in the entire Earth to mine to pull this stupid pipe dream off.