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Ford's Farley will challenge dealers to cut EV cost to customers by $2,000

DETROIT — Ford Motor Co Chief Executive Jim Farley will go to Las Vegas next week to roll the dice on a strategy to convince dealers to cut as much as $2,000 from the cost of delivering an electric vehicle to a customer. Ford has told dealers that one key topic for the meetings will be a discussion of new agreements that would govern how dealers sell Ford's expanding lineup of electric vehicles. Farley told analysts in July that Ford needs to cut $2,000 a vehicle out of selling and distribution costs to be competitive with Tesla Inc and other electric vehicle startups that sell directly to consumers without franchised dealers. About a third of those savings could come from what Farley called a "low inventory model," where customers order a vehicle and Ford ships it to the customer, rather than stocking vehicles on dealer lots for weeks or months. "We think that's about -- worth maybe $600, $700 in our system," Farley told analysts. Tesla can also adjust prices rapidly on its website, and keep most of the gain from a price increase. Ford declined to comment other than to say “we are excited to meet next week with our North America dealers to grow and win together.” Dealers said they expect Ford to outline minimum investments for charging stations and other equipment to support electric vehicle customers. A key question will be how quickly dealers will be required to install chargers, which dealers said can cost as much as $500,000. "The manufacturers so far have let us scale into it and I think Ford will hopefully do the same thing. You just can't say, 'Listen, we're going to sell 2 million electric cars five years from now and we expect you to put in five superchargers,'" said Rhett Ricart, owner of Ricart Ford, a large dealership in Columbus, Ohio. Tesla's success at selling electric vehicles without franchised dealers is putting pressure on all established automakers to overhaul their retail networks. A shift by Ford to a Tesla-style build to order system could come with caps on the profit margins dealers can earn on a new vehicle sale, some dealers said. "I see dealer margins still being very competitive, but they are going to shift," Farley said in July. Ford intends to put more emphasis on selling products and services after the initial vehicle sale, he said. Dealers said state franchise laws could give dealers leverage to resist efforts by Ford to set fixed prices or fixed fees for delivering electric vehicles.

Ford wants to double hybrid offerings by 2020

The Blue Oval is looking for folks on the other side of this Big Old Sphere to get on board with its hybrid offerings. Ford executive Raj Nair, speaking at the Detroit Auto Show this week, said the US automaker wants to double the number of hybrids models it offers by the end of the decade, Reuters reports. Details of what that actually means is anyone's guess, as it was unclear how many of those models would be in the US and how many would be overseas. That said, Nair did say that prospective customers in regions such as China and Europe would drive the expansion of offerings. Ford got off to a great start in the US last year on its hybrid sales, but then tailed off towards the end of 2013. Ford more than doubled its green-car sales in 2013 to almost 88,000 units. In that number were more than 37,000 Fusion Hybrids and more than 28,000 C-Max Hybrids sold domestically. The company also sold almost 7,500 Lincoln MKZ Hybrids. Ford's green-car totals for 2013 were up fivefold at the mid-year point, hinting that Ford's hybrid sales plateaued, at least temporarily, in recent months.

Ford recalls EcoBoost-powered F-150 and SUVs for brake fluid leak

Ford is recalling approximately 280,000 trucks and SUVs equipped with its 3.5-liter EcoBoost engine to address a potential brake fluid leak. The recall covers the 2016-2017 Ford F-150, 2016-2017 Ford Expedition and the 2016-2017 Lincoln Navigator.  According to Ford's defect report, the issue stems from contamination in the brake fluid causing degradation or damage to the seals in the brake master cylinder, allowing fluid to escape. Ford says that braking performance is not immediately impacted by the leak, and owners may not realize there's a problem until a brake malfunction indicator appears in the cluster, accompanied by a chime.  "If the brake fluid in the reservoir is depleted to a predetermined level, the driver will receive an audible chime, message center alert, and red brake warning indicator in the instrument cluster," Ford said in its defect report to NHTSA. "If the driver continues to operate the vehicle, the drive may begin to experience a change in brake pedal travel and feel, and increased pedal effort." "If a loss of brake fluid is substantial enough to reduce brake function to the front wheels, full braking function would remain in the rear wheel circuit. However, reduced brake function in the front wheels can extend stopping distance, increasing the risk of a crash," Ford said.  The issue can be addressed with a replacement brake master cylinder, which Ford will install free of charge. Ford has already begun notifying dealers and will send notices to customers starting in April.  Recalls Ford Lincoln Ownership Safety Truck SUV