DETROIT — Whilst Ford Motor Co. faces litigation over its electric-vehicle certification program for sellers, roughly two-thirds of its U.S. retail community has purchased in to the plans, and a few are discovering that prices could possibly be decrease than marketed.
Ford CEO Jim Farley, talking final week on the Automotive Information Congress right here, mentioned 1,920 sellers had agreed to observe the rigorous new gross sales requirements and make investments closely in EV chargers and coaching. He mentioned 1,659 sellers selected the Licensed Elite observe, which requires investing as a lot as $1.2 million, whereas 261 selected the Licensed standing, which requires as much as a $500,000 funding however caps their EV gross sales at 25 a 12 months.
The automaker, which has about 3,000 sellers within the U.S., views the upgrades as essential to difficult Tesla’s management in EV gross sales. Ford is the nation’s second-largest EV model this 12 months, based on Experian registration information.
“The way forward for the franchise system hangs within the steadiness right here,” Farley mentioned. “The No. 1 EV participant within the U.S. wager towards the sellers. We wished to make the alternative selection.”
Nonetheless, this system faces rising opposition in quite a lot of states.
Forward of Ford’s Dec. 2 opt-in deadline, sellers in New York sued, and Illinois sellers filed a protest with the state’s motorized vehicle board. In Connecticut, Democratic U.S. Sen. Richard Blumenthal and state lawmakers have voiced displeasure over what they are saying are extreme prices that doubtlessly violate state franchise legal guidelines.
Ford has persistently mentioned it believes this system, developed with enter from about 400 sellers from a monthslong “listening tour,” doesn’t violate state legal guidelines. Farley final week mentioned tweaks could possibly be made however that the foremost items of this system — together with that sellers promote EVs at no-haggle costs and carry no stock — will stay in place.
“We wish to work with our sellers,” Farley mentioned, “however there are particular issues our prospects need which can be nonnegotiable.”
Greg Balasco, proprietor of Lakeland Automall in Florida, which features a Ford retailer, signed as much as change into Licensed Elite.
He mentioned it was necessary that his retailer be capable of promote all Ford automobiles. The automaker is permitting solely licensed sellers to promote EVs past subsequent 12 months, a priority for most of the state associations opposing this system.
“I believe that with the ability to serve all folks one thing might be necessary for the long run,” Balasco instructed Automotive Information. “Being ready for electrification is the good factor to do.”
Balasco mentioned he already has obtained some estimates on prices to put in and function the chargers Ford is requiring. All-in, he is taking a look at bills of about $350,000 — lower than a 3rd of what the automaker projected.
“It is nowhere close to the numbers Ford put on the market,” he mentioned.
Eddie Stivers, vendor principal at two Ford shops in Alabama, obtained related quotes.
He mentioned chargers for his retailer in Montgomery will value “considerably lower than half” of the $1.2 million Ford estimated, though he is nonetheless ready on quotes from his utility firm.
At his different retailer, in Birmingham, he plans to put in extra Stage 3 direct-current quick chargers than the minimal of three, and his quotes are nonetheless coming in under Ford’s estimates.
Stivers, president of a holding firm that operates 5 dealerships promoting 10 manufacturers, mentioned he gave enter as a part of Ford’s “listening tour” and appreciated the corporate’s transparency.
“I’d put Ford’s plan at a a lot greater degree, and definitely extra coherent, than most of the OEMs,” Stivers mentioned. “It isn’t all roses, however it’s definitely a nicely thought-out, well-done plan.”
Not everybody agrees.
The New York sellers suing Ford argue that the supply in this system barring uncertified sellers from promoting EVs is illegal.
“Each vendor below the present franchise settlement has a proper to each Ford car manufactured with that nameplate on it, to incorporate the latest EVs,” Wealthy Sox, one of many attorneys representing the sellers, mentioned in an interview. “They’ve a proper to their truthful allocation of these automobiles primarily based on their market measurement, gross sales historical past, and so on. That is about ensuring all sellers have entry to EVs and never being pigeonholed into one among three classes this system arbitrarily created.”
Ford has argued that it plans to proceed investing in gasoline-powered automobiles below its Ford Blue enterprise unit so dealerships that don’t promote EVs can proceed to achieve success.
“A vendor that loses the power to promote and repair EVs — the way forward for the car trade — will quickly discover itself unprofitable and ultimately out of enterprise,” the New York sellers wrote of their lawsuit.
The Illinois protest, in addition to a grievance filed with Arkansas’ motorized vehicle fee in October, raises related factors.
“Ford is deliberately withholding new and doubtlessly worthwhile merchandise from sellers, to which they’ve an present contractual and statutory proper, except sellers accede to the acute, unreasonable, and anti-franchise situations on which Ford is insisting,” the Illinois sellers mentioned. “To make certain, there may be nothing ‘voluntary’ about Ford’s illegal take-it-or-leave-it program.”
Regardless of the opposition, Farley final week mentioned he did not remorse the rollout of this system.
“There’s at all times a greater means,” he mentioned. “However I do not suppose we made, actually, any massive errors.”