Ford dealers interested in selling EVs are having to adapt to a new standard that will be put into place in 2024, a plan that requires selling vehicles at MSRP and building out a charging network on site. This shift has resulted in multiple lawsuits filed by dealer associations in several states, although until recently no decisions had been made in jurisdictions where the suits were made. But based on a new report from Automotive News, the first decision has come down, the first ruling since these lawsuits were filed.
According to the article, six Ford dealers in South Dakota sued the automaker claiming that a particular EV certification program was replaced by a more expensive one, and that the switch violated the state’s franchise agreements. However, the hearing officer ruled that the Model e program does not represent a change to dealer agreements since it is optional. At this time, it is expected that those dealers will appeal the decision. Currently, there is no indication that this ruling will result in similar decisions in states where dealers have also filed lawsuits, which include New York, Illinois, and North Carolina.
As Ford Authority has previously reported, the majority of Ford dealers in the United States have opted to enroll in one of the two tiers available for the Model e certification program. Although franchise holders may face steep EV charger installation costs, some have found installation to be cheaper than they expected. That said, some Ford dealers have decided to drop out of the program, although they will get a second chance to sign up in 2026. The Blue Oval has also altered some requirements based on feedback from dealers, who had issues with the amount of money required to train employees on electric vehicles.
We’ll have more on this issue soon, so subscribe to Ford Authority for the latest Ford news updates.
Comments
I am really disappointed in Ford F150. There is definitely wrong with the drive train on my 2021 Platinum. I have be a Ford owner for at least 60 years. I guess I’m going to have to take a look at GM. My P/U does the same thing as my 2018. No one seems to care. I’ve had people ask me if there’s a problem with the drive train. If they can hear it maybe someone at the dealer could hear it.
Roger, I hear your aggravation. Many of us are with all the recalls but I do have to share that GM is in no better shape. We also have a 2022 Cadillac and have had numerous issues with GM which took many repeat returns to the dealer to force them to fix things. They brought in the factory techs and found numerous factory faults. I believe both Ford and GM are in deep doo doo and we shall see who survives.
It looks like Farley would be happy with no dealer net work at all. I see only one way survives this. Changes at the top spots. The photo op of Farley and Bill at the WEF says volumes. Pay Alan Mullaly what ever it takes for 5 year contract and move on from there.
The best hope for Ford and GM is for Kia,or Honda or Toyoto to buy them . American car makers are losing more sales percentage every year and it’s due to quality.
Huh? Ford sold 352,205 cars in Q1 2023 and GM sold 602,184 cars in the same quarter. The two biggest sellers in the US with Toyota coming third with 457,834 cars. Hyundai Kia coming far behind in fourth place with 380000. Profits have been great for both companies(GM and Ford) and that is how they are financing loses in the EV divisions of each. the reach break even point. Toyota was number 1 now is third to these two, how is that losing percentage points in sales?
With the large I ventory of electric vehicles sitting on dealer lots I can’t imagine the dealers are too inclined to sign up for much to be able to sell them.