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Ford Transit production fires up, American Pickers among first takers

Not long ago, the History Channel showed a seemingly unending stream of World War II documentaries, but it made a switch a few years ago to include an increasing mix of 'reality' programming. American Pickers was one of the early attempts at this new formula, with cameras following hosts Mike Wolfe and Frank Fritz around the country in a Mercedes-Benz Sprinter as they tracked down collectibles and "rusty gold" for their Iowa shop, Antique Archeology. The show has since gone on to become one of the channel's most popular programs.
Starting in the new episode airing tonight, the affable hosts will swap their Benz for a 2015 Ford Transit, a nicely timed bit of marketing to coincide with the launch of the model's assembly at the Blue Oval's Kansas City Assembly Plant, which also kicks off this week. Ford is touting 2,000 new jobs created as part of its $1.1-billion investment in the plant.
No strangers to product placement, the guys from American Pickers say their switch away from the Sprinter is because they wanted to balance cargo capacity and fuel economy to make the most of their cross-country jaunts. They opted for the largest Transit available with a long wheelbase, extended body and high roof, giving them 487 cubic feet of cargo room. Hauling power comes from a 3.2-liter, five-cylinder diesel engine with 190 horsepower and 346 pound-feet of torque and a six-speed automatic transmission with rear-wheel drive. Fittingly, the van wears the same Antique Archaeology logo over white paint as their old Sprinter.

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 Focus EV's slow sales trigger massive incentives

The Detroit News reports Ford is having real trouble moving its new Focus Electric. As a result, the automaker is offering substantial incentives in an attempt to lure in more buyers. How substantial? Try $10,750 off of a three-year lease. What's more, the EV can now be had for $37,995 ($2,000 less than its original base price) on top of an additional $2,000 cash discount to buy the EV outright - or you can opt for 1.9-percent financing if you work through Ford Motor Credit. None of which factors in various potential government incentives. Last year, Ford managed to sell a paltry 685 of the 1,627 Focus EV hatchbacks it built.
Ford isn't alone in trying to woo more buyers to its EV effort. Nissan cut the price of its Leaf by a whopping 18 percent for 2013, now down to $28,800 and built in the USA. The move followed the automaker's substantial incentives in 2012.
If you want a Focus Electric, you can now apparently get your hands on one for as little as $285 per month with $930 due at signing for a 36-month lease with 10,500 miles per year.