2005 Ford Freestyle 4dr Wgn Sel on 2040-cars

Auto blog

Ford tweaking Model E dealer program to address dealer concerns

Ford's been working on its strategy and sales reorganization for a couple of years, the initiative that created the Blue (ICE), Pro (commercial), and Model E (electric) divisions. On the Model E side, part of continuous reworking of the EV arm has been in response to dealer lawsuits filed in numerous states, since Model E not only stipulated investments of anywhere from $500,000 to $1.2 million, the automaker initially wanted dealers to set no-haggle pricing, offer remote pickup and delivery for service appointments, and build chargers that would operate around-the-clock. Another big part of the tweaks to Model E is the continually unstable ground the entire electric project is built on. As part of understanding what dealers are facing and how to keep the electric wheels turning, Automotive News reports that the automaker held 11 meetings with dealers this year in six cities. Based on the feedback, more changes are coming to Model E as soon as next month.   During the roadshow, Ford told dealers to pause their investments into getting certified for Model E. This directive followed a corporate change in plans as Ford pulled investments in battery-electrics in favor of consumers' choice for hybrids. The head of Ford Blue — the internal-combustion-powered division that, with Ford Pro, has been paying the bills as Model E posts big losses — told AN, "We don't want them to make any decisions between now and the middle of June, when you can maybe have a more informed decision-making process based off what we work out with council in the next few weeks." One change has already been made public, the VP of EV programs telling an AutoNews business conference audience, “What weÂ’re finding is more dealers want to be involved in it and we donÂ’t want to be exclusive to just a handful, and so weÂ’re making a change where weÂ’re opening up that and not requiring as many certifications or investments for a dealer to participate in the EV revolution." Don't take that comment as a revelation; since the beginning, dealers complained about being excluded and needing to throw so much money at the program. Take that comment as Ford needing to find a better way in the "rapidly changing" environment. The official list of updates won't come until next month, when Ford meets its dealer council, and it should touch on topics beyond EVs.

Ford sets rules for dealers selling electric cars: Fixed no-haggle pricing

Are you tired of reading about shady dealers marking up cars and taking advantage of buyers? Apparently, Ford is, too. According to The Drive, The Blue Oval issued a warning at its annual dealer conference, telling franchisees that they have until the end of October to decide whether to commit to fixed, no haggle pricing or be cut out of selling EVs. Ford is far from the only auto brand watching its dealers make up their own pricing, but it’s been one of the quickest to act on the issue. Earlier this year, the automaker split its business operations, with one part of the company focusing solely on electric vehicles and powertrain development and the other continuing FordÂ’s gas vehicle development. If dealers want to sell EVs, theyÂ’ll have to opt into the rules for Ford Model E (the brandÂ’s electric business arm) — one of which is a commitment to transparent, no-haggle pricing. Once theyÂ’ve agreed to the terms and conditions, Ford dealers become Model E Certified. The automaker views this as an opportunity to push more of its network toward a model that Tesla and other startups adopted. Many younger buyers favor direct sales, as it limits the in-person time required to buy a car and makes the purchase process easier for many. This is undoubtedly an annoyance for dealers, but theyÂ’ve long been asked to make investments to promote new products and initiatives. The shift to electrification has required the franchisees to make even more significant commitments, and in some cases, sizable financial investments, to meet automakersÂ’ new requirements. Automakers, including Ford, have provided off-ramps for dealers not interested in making the switch to EVs. Cadillac saw an exodus of more than a third of its dealer network after it issued new rules for electric vehicle sales. Ford will likely see some attrition with this policy change, but itÂ’s offering dealers an opportunity to “spend more to make more,” so to speak. Stores already committed to selling EVs can promise to invest an additional amount – up to half a million dollars – to build additional chargers and invest in other equipment. Those that do can earn an “Elite” designation on their Model E certification and are not subject to allocation limits and other speedbumps that other certified dealers see. Earnings/Financials Green Ford Lincoln Car Buying Car Dealers Electric

Ford says C-Max mpg reduction has hurt sales

The Ford C-Max is having a rough time. Sales for the five-door hybrid hatchback were down 39.1 percent in March to 2,295 cars, and sales from January through March were down 42.5 percent to 5,566 units. In an interview with The Detroit News, Ford Americas boss Joe Hinrichs places the blame on lowering the model's fuel economy rating.
"We're definitely seeing consideration on C-Max decline over time. We need to reinvest in the product because it's a great car," said Hinrichs to The Detroit News.
The company was hit with bad publicity over the C-Max when owners in multiple states filed class action lawsuits that alleged the cars weren't able to meet the stated fuel economy. Ford eventually re-rated the model from 47 miles per gallon city, highway and combined to 40 mpg city, 45 mpg highway and 43 mpg combined. To soften the blow of the change, the automaker sent checks to the owners to make up some of the difference. Initially, Ford claimed that demand remained strong for the hybrid. However, the latest sales figures and Hinrichs' statement seem to show the opposite.