[THEsocalledfan]

Boom! This was clearly where this all was going.... it will take time to catch Tesla, but this is excellent strategy in leveraging the advantages of a dealer network.

 

[02Reaper]

Wonder what this means for all of the dealers with mannequins that opt out. Will they still have to follow the 6 month policy? Will they have to send them to another dealer? I'm sure a lot of smaller dealers won't be able to comply.

 

[Txxthie]

Expect other OEMs to follow suit within a year. Jim Farley is giving me Alan Mulally goose bumps.

 

[TS-lightning]

Love the idea of the public charging stations..hopefully they will be well maintained and give travelers another option of where to ‘re-fuel’.

 

[208]

Well crafted and well sold Farley, I continue to be really impressed with this guy. I was expecting this to come down the pipe, but am surprised with the short timeline. This takes the ADM issue off the table for many of us waiting to order.

 

[Trentb]

I wonder what will happen to my Lightning reservation (and order when that day comes) if my dealer chooses not to become a Model E Certified Elite or Model E Certified dealer? Will that push my order date and eventual delivery of my Lightning even further into the future, or possibly result in the cancellation of my reservation and order altogether?

 

[Txxthie]

I wonder what will happen to my Lightning reservation (and order when that day comes) if my dealer chooses not to become a Model E Certified Elite or Model E Certified dealer? Will that push my order date and eventual delivery of my Lightning even further into the future, or possibly result in the cancellation of my reservation and order altogether?

Excellent question, wow 🤩 has Ford botched this lightning rollout.

 

[208]

I wonder what will happen to my Lightning reservation (and order when that day comes) if my dealer chooses not to become a Model E Certified Elite or Model E Certified dealer? Will that push my order date and eventual delivery of my Lightning even further into the future, or possibly result in the cancellation of my reservation and order altogether?

No. I'm not getting a straight answer from Ford or the dealers on this point, but it seems obvious that your order will go to either the next closest Model e dealer, or one of your choice. Now that the dealer preference slots are used up, it is unlikely to affect the timing of your order.

 

[mazx222]

Well crafted and well sold Farley, I continue to be really impressed with this guy. I was expecting this to come down the pipe, but am surprised with the short timeline. This takes the ADM issue off the table for many of us waiting to order.

I don’t think this removes the ADM though. The article says they have until 2024 to still sell them so that only helps if you don’t get it until after 1/1/24. But it also sounds like dealers can still set their own prices, but just have to be transparent and stick to that price. So they can still mark it up $15k, they just have to tell you up front now.

 

[Justjoe]

Love the idea of the public charging stations..hopefully they will be well maintained and give travelers another option of where to ‘re-fuel’.

Interesting note: Currently I can charge my Lightning at the KIA dealership. I am curious to what they may say if I stopped in for a charge. The Ford dealership has a charging station inside the showroom only.

 

[ChasingCoral]

Wonder what this means for all of the dealers with mannequins that opt out. Will they still have to follow the 6 month policy? Will they have to send them to another dealer? I'm sure a lot of smaller dealers won't be able to comply.

The mannequins belong to the dealers.

I wonder what will happen to my Lightning reservation (and order when that day comes) if my dealer chooses not to become a Model E Certified Elite or Model E Certified dealer? Will that push my order date and eventual delivery of my Lightning even further into the future, or possibly result in the cancellation of my reservation and order altogether?

My guess is this will probably not affect existing mannequins or orders delivered in 2022. Orders with delivery in 2023 would probably be transferred to a Certified dealer of your choice.

 

[ChasingCoral]

At a minimum, Model E Elite dealers will need to install two high-powered DC fast chargers and a level 2 charging station, as well as offer at least one DC fast charger available for the public to use...Model E Certified dealers are only required to install one DC fast charger, and it must be made available for public use.

This won't help in many cities where dealers are located and infrastructure is already going in but will be a big improvement to charging infrastructure in rural areas.

I hope Ford adds up-time requirements on those chargers.

 

[208]

I don’t think this removes the ADM though. The article says they have until 2024 to still sell them so that only helps if you don’t get it until after 1/1/24. But it also sounds like dealers can still set their own prices, but just have to be transparent and stick to that price. So they can still mark it up $15k, they just have to tell you up front now.

You need to read it more carefully. Dealers can re-apply in 2024 if they decline now, but will not be able to sell EVs come January 1 2023 if they decline now. EV dealers are bound to strict MSRP.

 

[ChasingCoral]

Ford sets new requirements for dealers to sell EVs, including mandatory fast chargers and non-negotiable pricing

Five new pillars for Ford dealers to sell EVs
With these new dealer commitments, Ford is laying the foundation for a bright future in EV sales, not only in retail, but online as well. In a sit down with a small group of media yesterday, Ford executives from all three divisions, as well as CEO Jim Farley, presented the future of Model e dealerships, built upon five pillars. He explained:

We’re betting on the dealers, we’re not going to go direct. But we need to specialize. We do that with unique standards.

Here they are:

• Training:
  • Specialized EV teams that are knowledgeable across sales and ownership
  • EV University to train dealers and subsequently, customers
• Charging:
  • Back-of-house charging infrastructure to support sales, maintenance, and care
  • Public DC fast chargers available on Blue Oval Network (see more below)
  • 96% of the US population lives within 20 miles of a Ford dealer, 85% live within ten miles – by implementing fast chargers at dealers, it helps ensure customers always have somewhere to charge their EV, even if they don’t have their own home to do so
• eCommerce:
  • Transparent, non-negotiable pricing
    • To be clear, dealerships still set the pricing, that’s the law. However, Ford wants pricing to be consistent and fair for its customers and said it will be monitoring the process from entry to exit to ensure that the customer signs on the dotted line for the same price as originally promised on day one.
    • Ford says it will be surveying customers post sale and monitoring the consistency of prices across different customers at each dealer
  • Opportunity for the greatest customer satisfaction
  • Ford told us it saw online orders jump from 6% to 50% in one year
• Physical Experiences:
  • Remote delivery available to all Model e customers
  • Pickup and delivery offered with a loaner to all Model e customers
• Digital Experiences:
  • Software and subscription opportunities available
  • Ford Pass perks

 

[dcreeron]

You need to read it more carefully. ,,, EV dealers are bound to strict MSRP.

Nowhere in the linked article does it say dealers are bound to MSRP. It does say:

"The new rules for Model e dealerships require dealers to post set prices for the electric vehicles online at Ford's website. Customers can view the set pricing, complete the purchase online, and even schedule home delivery. But ultimately, it's the dealer's decision what the set pricing will be for the vehicles, and there will likely be price variation from dealer to dealer. Customers will be able to cross-shop different local dealers' prices online, and then choose the one with the lowest set price. The dealers must honor the set pricing for every purchase, and Ford will be checking the purchase orders to make sure that happens."

In that scenario dealers would be shooting themselves in the foot by going crazy with ADM. People would just go elsewhere and not even consider them.

 

[THEsocalledfan]

Nowhere in the linked article does it say dealers are bound to MSRP. It does say:

"The new rules for Model e dealerships require dealers to post set prices for the electric vehicles online at Ford's website. Customers can view the set pricing, complete the purchase online, and even schedule home delivery. But ultimately, it's the dealer's decision what the set pricing will be for the vehicles, and there will likely be price variation from dealer to dealer. Customers will be able to cross-shop different local dealers' prices online, and then choose the one with the lowest set price. The dealers must honor the set pricing for every purchase, and Ford will be checking the purchase orders to make sure that happens."

In that scenario dealers would be shooting themselves in the foot by going crazy with ADM. People would just go elsewhere and not even consider them.

Farley is playing 3D chess with dealers. He knows he can't mandate MSRP, but he can mandate MSRP.....

 

[mazx222]

Nowhere in the linked article does it say dealers are bound to MSRP. It does say:

"The new rules for Model e dealerships require dealers to post set prices for the electric vehicles online at Ford's website. Customers can view the set pricing, complete the purchase online, and even schedule home delivery. But ultimately, it's the dealer's decision what the set pricing will be for the vehicles, and there will likely be price variation from dealer to dealer. Customers will be able to cross-shop different local dealers' prices online, and then choose the one with the lowest set price. The dealers must honor the set pricing for every purchase, and Ford will be checking the purchase orders to make sure that happens."

In that scenario dealers would be shooting themselves in the foot by going crazy with ADM. People would just go elsewhere and not even consider them.

Yeah, I read it the same way. It looks like dealers can still set the price to whatever they want, but now they have to be transparent and upfront about it, and honor whatever is on the website. So if every dealer in your area has an ADM of $10k extra, then you have to take it unfortunately. The way these laws are written in most states, Ford doesn't have the legal ability to make dealers stay at MSRP, nor does any manufacturer with dealerships.

Also, to the other point made by @TeslaDriver , here is what I read in the electrek article:

The first wave of Model e dealer exclusivity will begin on January 1, 2024 and run until December 31, 2026. Additionally, these Ford dealers must decide by October 31, 2022 if they are in or not, and whether they want to be Model e Certified or Elite.

Yes, dealers have until 10/31/22 to decide if they want to sell EVs, but if they say no, they still can sell them all throughout 2023. They have to stop selling EVs starting on 1/1/24 and can't sell them again until 1/1/27. They don't stop immediately.

 

[ChasingCoral]

Yeah, I read it the same way. It looks like dealers can still set the price to whatever they want, but now they have to be transparent and upfront about it, and honor whatever is on the website. So if every dealer in your area has an ADM of $10k extra, then you have to take it unfortunately. The way these laws are written in most states, Ford doesn't have the legal ability to make dealers stay at MSRP, nor does any manufacturer with dealerships.

However, there are also consumer protection laws against price collusion.

 

[208]

Yeah, I read it the same way. It looks like dealers can still set the price to whatever they want, but now they have to be transparent and upfront about it, and honor whatever is on the website. So if every dealer in your area has an ADM of $10k extra, then you have to take it unfortunately. The way these laws are written in most states, Ford doesn't have the legal ability to make dealers stay at MSRP, nor does any manufacturer with dealerships.

Also, to the other point made by @TeslaDriver , here is what I read in the electrek article:

The first wave of Model e dealer exclusivity will begin on January 1, 2024 and run until December 31, 2026. Additionally, these Ford dealers must decide by October 31, 2022 if they are in or not, and whether they want to be Model e Certified or Elite.

Yes, dealers have until 10/31/22 to decide if they want to sell EVs, but if they say no, they still can sell them all throughout 2023. They have to stop selling EVs starting on 1/1/24 and can't sell them again until 1/1/27. They don't stop immediately.

Ah... 1/1 of 2024... thanks, I missed that was not the coming year.