Legacy automakers and their supplier networks face some severe selections as electrical automobiles develop in recognition and inner combustion automobiles lose a few of their luster below tightening emission rules.
However few of these selections are as elementary as this: Will automakers work with sellers to make the transition to EVs a actuality, or will they view the transition as a chance to stress their “trusted enterprise companions?”
That is the battle taking part in out proper now throughout Ford Motor Co.’s U.S. supplier community because the automaker implements an Orwellian “Mannequin e” playbook that might deal with all sellers equally — because it should below current franchise legal guidelines — whereas successfully making some extra equal than others.
That’s wrongheaded, and state supplier associations in addition to Ford sellers are proper to stress the automaker to amend some facets of its technique.
Ford’s requirement that its sellers make investments as much as $1.2 million of their companies to organize to promote EVs isn’t at subject — sellers perceive that investments are wanted to transition their companies to promote and restore EVs. What’s problematic is the automaker’s plan to create tiers of dealerships: Mannequin e Licensed Elite, which may promote any Ford car, and Mannequin e Licensed, which might be restricted to simply 25 build-to-order retail gross sales per 12 months. That lesser class would haven’t any EV stock, no EV demo items accessible and no visibility on the automaker’s Tier 1 web site for its EVs.
Additionally at subject is Ford’s requirement that taking part sellers set up customer-facing quick charging at their dealerships, ostensibly to help EV prospects whereas third-party charging networks develop. Whereas this requirement would possibly please Wall Road analysts because it creates a corollary with Tesla’s charging community, it does so at supplier expense and with no monetary help from Dearborn. It additionally vastly overestimates shopper curiosity in spending time at a dealership when not shopping for a car or having it serviced.
Evaluate Ford with a few of its rivals.
Cadillac provided buyouts to its sellers who did not see a return of their future from a transition to an all-electric lineup, whereas 99 p.c of Volkswagen’s U.S. sellers signed up when the model provided to subsidize as much as half of the price of upgrades.
Ford executives could be sensible to rethink their Mannequin e technique, and maybe undertake some greatest practices on being good companions from rivals going through related transitions.