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Ford Reduces Requirements for Dealer EV Certification


ice-capades

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Ford Reduces Requirements for Dealer EV Certification

https://www.detroitnews.com/story/business/autos/ford/2023/11/20/ford-reduces-requirements-dealer-ev-certification/71659765007/

 

2023 F-150 Inventory.jpg

 

Ford Motor Co. has reduced requirements on its voluntary electric-vehicle certification program for dealers as a part of its changing EV plans.

 

The changes to the Model e EV Program included reduced training requirements and fewer chargers on site. The company said they come "as we continue to adapt our overall EV strategy to the market and listen to Dealer feedback," according to an email from spokesperson Marty Günsberg. Charger supply chain and infrastructure delays also contributed.

 

The move announced to dealers on Friday comes as Ford and other automakers have taken steps back in their EV plans as the adoption curve has slowed. The Blue Oval's Model e EV and software business unit reported a loss of $1.3 billion in the third quarter, and executives pushed back $12 billion in planned spending on EVs. It had delayed its goal to produce 600,000 EVs in a year to next year.

 

For dealers to be "certified" in the EV program, they next year have to have two Level 2 chargers, down from five. To be "certified elite," that standard falls to three instead of five, and the additional "level 3" fast charger for 2026 for this certification level has been removed, too.

The total charging counts now have to be installed by June 30, 2024. This later timing is from the charger supply shortage. The Dearborn automaker also said the changes in training requirements also will lower dealer investment costs by about 50%.

 

Ford also has delayed the launch of one of two joint-venture battery plants it's building in Kentucky with South Korean manufacturer SK On. It also has paused construction on a battery plant in west Michigan's Marshall. It reduced production on the Mustang Mach-E SUV in Mexico, too.

 

Last December, CEO Jim Farley said two-thirds of dealers had signed up for the EV charging program. The requirements, though, have attracted a few lawsuits with mixed results nationally.

 
Edited by ice-capades
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I  thought the original plan from Ford was a sneaky way to decouple a lot of dealerships from access to Model E,

but now it looks like buyers are decoupling Ford from Model E…….

 

While Ford is resisting putting incentives on the 14,500 Mach Es unsold at dealerships, the moment they do,

the premium prices paid by existing owners will be undermined as will future resale values…

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Very sad that Ford executives dumbed down the Model e dealer certification standards just a few months after Cox Automotive's 2023 Path to EV Adoption: Consumer and Dealer Perspectives study made it clear that such standards for franchised dealerships need to be raised, not lowered.

 

image.thumb.png.b7630c15f1970682cce81980c847e10a.png 

 

 

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Nearest Ford dealer to me is supplied by the city's municipal power system which has their own wind generating capacity and contracts for baseload hydro, wind, and coal with a regional power co-op in the Dakotas. Rates are fairly low but if they go above a certain allowance the rates rise drastically, so it actually paid for them to install a big solar array to handle the peaks. Third closest dealer relies on municipal power too, supplied by the same co-op but the city has natural gas IC generators for backup and peak power. In both cases fast charging even a couple of EVs will put them above their allowance and trigger much higher peak rates as their municipal power supplier has to generate or buy expensive electricity.

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7 hours ago, jpd80 said:

Some dealerships have had their upgrade plans rejected by local councils because the required power upgrades exceed supply capacity.

 

That's the report of what happened to a local Ford-Lincoln dealer here - been open 50+ years and decided to close because they couldn't get the approval for the power requirements Ford to meet the standards Ford had - wonder if they regret closing after some of these scale backs?

 

Sadly, the closest Lincoln dealer is now 15-20 miles away from a popular area for Lincolns.  There's a Ford dealer not too far away, but not having a Lincoln in an area where there are countless other luxury dealers isn't good, IMO.

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15 minutes ago, rmc523 said:

 

That's the report of what happened to a local Ford-Lincoln dealer here - been open 50+ years and decided to close because they couldn't get the approval for the power requirements Ford to meet the standards Ford had - wonder if they regret closing after some of these scale backs?

 

Sadly, the closest Lincoln dealer is now 15-20 miles away from a popular area for Lincolns.  There's a Ford dealer not too far away, but not having a Lincoln in an area where there are countless other luxury dealers isn't good, IMO.

Yes and it’s clear that Ford did not think through the ramifications of its proposed dealer upgrades,

how do you punish dealerships that are not permitted by local authorities to do those upgrades?
Sounds like a good legal case to me, excluding franchises from accessing products is not a good idea.

 

The argument was never about dealers not wanting to sell EVs, it’s the $1.2 million cost imposed by Ford to get access to it BEVs that was the issue. Having charging facilities is important when you’re serving BEVs but so too is working with local authorities to make power supply available - perhaps an exemption for power used to charge BEVs at their dealerships?

Edited by jpd80
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38 minutes ago, jpd80 said:

Yes and it’s clear that Ford did not think through the ramifications of its proposed dealer upgrades,

how do you punish dealerships that are not permitted by local authorities to do those upgrades?
Sounds like a good legal case to me, excluding franchises from accessing products is not a good idea.

 

The argument was never about dealers not wanting to sell EVs, it’s the $1.2 million cost imposed by Ford to get access to it BEVs that was the issue. Having charging facilities is important when you’re serving BEVs but so too is working with local authorities to make power supply available - perhaps an exemption for power used to charge BEVs at their dealerships?

 

This recently happened in Illinois.  https://pantagraph.com/news/state-regional/business/illinois-ford-dealers-win-ruling-against-automaker-s-ev-certification-program/article_7450c04c-8af4-11ee-92d8-2b5b6c3bb24e.html

 

HRG

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25 minutes ago, HotRunrGuy said:

Probably why Ford is softening its stance, it knows the  conditions to access BEVs are illegal under state franchise laws.

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On 11/27/2023 at 8:21 AM, rperez817 said:

Very sad that Ford executives dumbed down the Model e dealer certification standards just a few months after Cox Automotive's 2023 Path to EV Adoption: Consumer and Dealer Perspectives study made it clear that such standards for franchised dealerships need to be raised, not lowered.

 

image.thumb.png.b7630c15f1970682cce81980c847e10a.png 

 

 

YAY...another POLL....Hillary in a landslide.....what a bunch of crap these polls blurt...how many people were polled...where are  they located..blah, blah blah blah and blah....

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25 minutes ago, Deanh said:

how many people were polled...where are  they located..blah, blah blah blah and blah....

 

1,024 consumers and 152 franchised dealers throughout the USA were polled. For more details contact Cox Automotive Senior Manager of Corporate Communications Dara Hailes at dara.hailes@coxautoinc.com. 

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19 minutes ago, rperez817 said:

 

1,024 consumers and 152 franchised dealers throughout the USA were polled. For more details contact Cox Automotive Senior Manager of Corporate Communications Dara Hailes at dara.hailes@coxautoinc.com. 

FUNNY...yet another outside "expert" that has no vested interest in running the vehicular business or obvious know how... irony...3000 dealers just wrote a letter to President Biden telling him he basically needs to pump the brakes....and seriously 1024 consumers? theres 39 MILLION in California alone...........like I said...ranks  right up there with other frivilous pols making headlines on a daily basis...the one about potential obesity being caused by a fast food diet had more accuracy

Edited by Deanh
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13 minutes ago, Deanh said:

FUNNY...yet another outside "expert" that has no vested interest in running the vehicular business or obvious know how.

 

Cox Automotive not only has a "vested interest in running the vehicular business", but their "obvious know how" in that business sector is renowned and respected. The company operates all of the following.

  • Autotrader
  • Central Dispatch
  • Dealer.com
  • Dealertrack
  • EV Battery Solutions
  • FleetNet America
  • Fleet Services
  • Kelley Blue Book
  • Manheim
  • NextGear Capital
  • vAuto
  • VinSolutions
  • Xtime

 

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20 minutes ago, rperez817 said:

 

Cox Automotive not only has a "vested interest in running the vehicular business", but their "obvious know how" in that business sector is renowned and respected. The company operates all of the following.

  • Autotrader
  • Central Dispatch
  • Dealer.com
  • Dealertrack
  • EV Battery Solutions
  • FleetNet America
  • Fleet Services
  • Kelley Blue Book
  • Manheim
  • NextGear Capital
  • vAuto
  • VinSolutions
  • Xtime

 

What franchaises do they run?....absolutely NOTHING to do with running a dealership of any kind, yet another JD Powers, or "Consumer Reports " couch authorities......and for you to utilizing a POLL by them based on 1000 individuals to back up the ludicrous claim that Fords somehow dropped the ball, is insane....ask yourself WHY everyones ( NOT just Ford ) pumping the brakes on EV and the answer is pretty blatant,  they want to remain in business....EVis  not ready for prime time YET, and everyone barr you seems to realize that ,and it wont be for a while, AND wont be for a lot longer than that dependent on where one is located...and seriously...that poll youre waving around like a protest banner even states the words "feelings'...news for you, feeling arent reality....

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11 minutes ago, Deanh said:

absolutely NOTHING to do with running a dealership of any kind

 

Cox Automotive's constituent businesses provide dealers with services, software, and consulting for all aspects of dealership operations - new car sales, used car sales, F&I, and fixed ops. Among the areas where Cox Automotive does business with dealers are DMS and CRM software, data analytics, digital marketing, lead generation, advertising, remarketing, vehicle transport, vehicle inspection, inventory management, pricing strategies, service/parts scheduling and shop management, vehicle registration & titling, and fleet management among others. 

 

The breadth and depth of Cox Automotive's operations is one reason why they're highly respected in automotive retailing.

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1 hour ago, rperez817 said:

 

Cox Automotive's constituent businesses provide dealers with services, software, and consulting for all aspects of dealership operations - new car sales, used car sales, F&I, and fixed ops. Among the areas where Cox Automotive does business with dealers are DMS and CRM software, data analytics, digital marketing, lead generation, advertising, remarketing, vehicle transport, vehicle inspection, inventory management, pricing strategies, service/parts scheduling and shop management, vehicle registration & titling, and fleet management among others. 

 

The breadth and depth of Cox Automotive's operations is one reason why they're highly respected in automotive retailing.

I know that...we use some of their services...and some of them quite frankly arent that great...but they are basically advisors ...they do NOT sell vehicles per say OR have any idea how to other than apparently "aiding" Dealerships process's for a royalty....they apparently "improve " the process ( debateable )  and help with compliance ( which unfortunatly has become an annoying overwraught necessity ) So..ANYTHING they utilize to prop up their own self promotion I would take with a substantial grain of salt...as  stated JD powers rings a bell...and they arent that respected ( COX ) they have become somewhat of an annoying necessity......ie..."Hey, heres a great idea you can utilize for a mere $5000 a month..." they could literally go away and their absence wouldnt be noticed...well, barring their "polls"....

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16 minutes ago, GearheadGrrrl said:

Problem is, people will say one thing to a survey and then actually buy something complete different. For example, when the original Mustang was shown to sample groups of potential buyers it bombed. Ford introduced it anyways and they couldn't build them fast enough!

IMO most POLLS per say are completely worthless, if not all..WAY too many variables, and the same pol, taken 50 miles away with simialr numbers could be completely different, they have become basically ignorable and should never be utilized to prop someones narrative up....1000 people DOESNT cut it

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On 11/25/2023 at 3:07 PM, jpd80 said:

I  thought the original plan from Ford was a sneaky way to decouple a lot of dealerships from access to Model E,

but now it looks like buyers are decoupling Ford from Model E…….

 

While Ford is resisting putting incentives on the 14,500 Mach Es unsold at dealerships, the moment they do,

the premium prices paid by existing owners will be undermined as will future resale values…

well, if I recall, the " e model" came about around the Round Table when people were crawling all over one another to buy ANYTHING electric...a nod should be given to the Media outlests for prortraying anything BEV as the next coming. BEV was promoted as being a HUGE part of Fords future if not its entirety....I know our principle was shit scared of missing "that" wave...and understandably so given the craziness that was BEV in its infancy.  As , I think is somewhat obvious, I didnt buy into the frenzy and veiwed that as somewhat of a mistake...but I cannot in any way blame the Dealers that committed given all the hype/ propoganda.....Ford did EXACTLY the same with Lincoln if you recall, promised outrageously good and exciting ( read PROFITABLE self selling market leading) product IF Millions of diollars were invested in the Dealerships presentation and facilitiy upgrades. If you didnt, you werent going to get the product that was going lead to Lincolns resurgence ...kind of shitty to the dealers that had substandard product for so long and were surviving on their Used Cars to survive.   

Edited by Deanh
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On 11/29/2023 at 7:33 AM, GearheadGrrrl said:

Problem is, people will say one thing to a survey and then actually buy something complete different. For example, when the original Mustang was shown to sample groups of potential buyers it bombed. Ford introduced it anyways and they couldn't build them fast enough!

Mustang was aimed at baby boomers, Ford showed it to their typical sample group of  mom and dad buyers…..

Edited by jpd80
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