2018 Lincoln Continental Reserve on 2040-cars

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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.

Autoblog Podcast #327

New York Auto Show, Jim Farley interview, 2014 Chevrolet Silverado fuel economy, Ford fuel economy app challenge
Episode #327 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about this year's New York Auto Show, Chevrolet's latest assault in the pickup truck fuel economy battle, and Ford's reward for developing a better fuel economy app. Dan also has an interview with Ford's Jim Farley about the future of Lincoln. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #327:

2015 Lincoln MKC priced from $33,995* [w/poll]

Looking to build on the momentum it struggled to establish with the MKZ, Lincoln recently unveiled the production version of its all-new MKC last month at the LA Auto Show. With a proven platform shared with the Ford Escape and striking design, the 2015 Lincoln MKC goes on sale next summer ready to take on the ever-expanding world of luxury compact crossovers. Breaking into this new segment, Lincoln has priced the MKC aggressively as one of the least-expensive offerings in its class, starting at $33,995 (*including destination charges).
At that price, the 2015 MKC costs a little bit more than a fully loaded 2014 Ford Escape Titanium and is just slightly less costly than the Acura RDX and Volvo XC60. More importantly, it's thousands less than Audi Q5, BMW X3 and Mercedes GLK-Class. The MKC will be offered in three trim levels for now - there is still no more information about Lincoln's new Black Label products - ranging from the base Premiere up to the range-topping Reserve.
The Premiere will come standard with features like active grille shutters, push-button start, remote start, dual-zone climate control and heated front seats, while the midgrade Select starts at $37,225 and adds upgraded 18-inch wheels, ambient lighting, daytime running lights and a steering wheel featuring Wollsdorf leather. The top-shelf Reserve trim level starts at $40,930 and brings even more luxury features including the panoramic roof, navigation, cooled front seats and wifi access.