Source: Gasgoo
According to foreign media reports, with changes coming to Ford’s electric vehicle certification program, the company has told dealers to suspend investment. Ford said it plans to inform dealers of the new changes amid a “rapidly changing electric vehicle market.”
In December 2022, Ford CEO Jim Farley revealed that 1,920 dealers would join the company’s electric vehicle sales program. But since then, Ford has made some changes to its electric vehicle plans.
Ford spokesman Marty Gunsberg confirmed in December that several dealers had opted out of the program. “Registrations for 2024 are just over 50 percent of the sales network,” down from about two-thirds a year ago, he said.
Image source: Ford
Last year, Ford eased its requirements, citing “market changes.” The company’s changes include reducing the number of L2 chargers and extending installation times.
Andrew Frick, president of Ford Blue, Ford’s internal combustion engine vehicle business, said the company would make more changes soon. “We’re going to review a lot of the program,” Frick said. Ford plans to meet with the dealer council early next month and finalize the updates based on feedback from across the country.
In the meantime, Ford has asked dealers to suspend investment in its electric vehicle certification program as new changes are implemented. Ford expects dealers to meet charging requirements for certain electric vehicles soon, but Ford will delay previous financial commitments.
“We don’t expect them to make any decisions between now and the middle of June, when maybe they can make a more informed decision based on what we’re going to work out with the dealer council over the next few weeks,” Frick explained.
According to Frick, one of the biggest concerns for dealers right now is “the rapidly changing electric vehicle market.” As Ford delays its electric vehicle plans and shifts its focus to smaller, more profitable electric models, the company wants to revamp its dealer network.
Frisk did not provide specifics, but said the dealer committee and executives were on the same page. “I think, based on what we’ve learned, the two sides are on the same page on the process,” he explained.
Earlier this week, Ford asked suppliers for ideas on how to cut the cost of electric vehicles. Last year, Ford’s electric vehicle unit, the Model e, lost $4.7 billion, and in the first quarter of this year, the unit lost another $1.3 billion. Ford expects its electric vehicle business to lose as much as $5.5 billion this year.
Farley has previously stressed the need for the Model e division to “stand on its own two feet.” Ford expects its next generation of electric vehicles to be profitable within 12 months of launch. At the same time, Ford also plans to introduce more hybrid models while developing profitable electric vehicles.
