Ford Canada has once more prolonged the deadline for sellers to enrol in its electrical automobile applications as the 2 sides attempt to resolve the issues some retailers have spending as much as $1.3 million to promote and repair the automaker’s EVs starting in 2024.

Ford’s 440 sellers have till Feb. 17 to enrol within the Mannequin e Licensed or the Mannequin e Licensed Elite applications, the automaker informed Automotive Information Canada.

Ford has not disclosed what number of sellers have signed up thus far. It had initially set a deadline of Dec. 16 however prolonged that to Dec. 30.

“The seller session course of on the Mannequin e program started final spring and to proceed these essential discussions, the corporate has prolonged the enrolment deadline,” Ford stated in an announcement Jan. 13.

In an indication of ongoing seller discontent, Toronto lawyer Shaun Laubman stated he has been retained by a gaggle of outlets, though he didn’t disclose the quantity.

Neither Laubman nor Ford would affirm whether or not sellers have launched authorized motion.

Some retailers in bigger markets have enrolled in Mannequin e applications, saying they think about the infrastructure upgrades are commensurate to having a Ford franchise. Others are working by means of the Ford Sellers RoundTable Affiliation (FDRA) to resolve issues, retailers informed Automotive Information Canada.

A seller who spoke on the situation of anonymity stated the FDRA obtained a response from Ford “simply earlier than Christmas, [but] it didn’t go far sufficient in contemplating the grievances or doable enhancements for all.”

The seller who has not signed on to the EV certification applications shouldn’t be amongst these being represented by Laubman.

Ford estimates sellers can pay about $1.3 million to enrol in Mannequin e Licensed Elite program and about $560,000 for Mannequin e Licensed. About 90 per cent of the associated fee is charging infrastructure, together with DC quick chargers, Ford stated.

Licensed Elite sellers could have first dibs on out there EVs, whereas Mannequin e Licensed sellers will “deal with possession and charging with restricted built-to-order gross sales,” a Ford spokesman stated. Sellers who don’t enroll in both program will probably be restricted to promoting inner combustion engine (ICE) and hybrid automobiles, as of Jan. 1, 2024. The following likelihood to hitch the Mannequin e Licensed program will probably be in 2027.

Ford stated in an announcement that the applications present its dealership community with “a aggressive benefit as we play to win within the BEV area.”

However the nameless seller stated the infrastructure funding underneath the Ford applications can be a waste of cash for his distant retailer as a result of there are few if another public chargers for “a number of hundred kilometres.”

The seller additionally stated rural clients who journey to a bigger market to purchase an ICE Ford or Lincoln can nonetheless get it serviced regionally, however that gained’t be doable if Mannequin e Licensed sellers are the one ones licensed to service EVs. The automobile would possibly must be towed tons of of kilometres to an authorized seller for service. 
A spokesman for the FDRA declined to touch upon the state of talks.

Sellers in three U.S. states have additionally pushed again, arguing the Mannequin e Licensed plan violates franchise legal guidelines.

Richard Sox, a Florida-based lawyer, informed Automotive Information Canada he’s representing 4 dealerships in New York. Though Canadian franchise legal guidelines differ from these in U.S. jurisdictions, Sox stated the important thing contentious points could also be related to retailers on either side of the border.

Sox stated the U.S. dealerships opposing the Mannequin e applications allege that:

1. The infrastructure funding that Ford is requiring of dealerships far exceeds what’s “fairly vital” to promote and repair EVs. Specifically, the requirement to have an exterior charger out there to most people 24/7 shouldn’t be solely expensive but in addition brings with it potential legal responsibility within the occasion of a malfunction or security incident.

2. The gross sales mannequin quantities to “an company mannequin by means of the again door.” Ford units the worth and even assigns a buyer’s trade-in worth. The seller is then obliged to honour the assigned trade-in worth whatever the situation of the automobile that’s turned in.