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Home»Investments»Ford tells dealers to pause investment in EVs
Investments

Ford tells dealers to pause investment in EVs

prosperplanetpulse.comBy prosperplanetpulse.comMay 21, 2024No Comments2 Mins Read0 Views
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Ford Motor Co. is advising dealers to halt investments related to electric vehicle sales until a review of the requirements is completed in June, the company announced Tuesday.

The Dearborn automaker had set a June 30 deadline to invest in Level 2 EV charging stations in order to qualify for the Model E Certification Program, which allows dealers to sell EVs. The company eased the requirements in November, but since then Ford has made changes to its all-electric vehicle program, including delaying the launch of its three-row SUV by two years, given slower-than-expected EV sales growth. continued to announce changes. affordability concerns, lack of charging access, and other barriers.

Ford Motor Co. is advising dealers to halt investments related to electric vehicle sales until a review of the requirements is completed in June.

The decision came after Ford executives completed a Dealer Engagement Tour that saw them hear from more than 1,000 dealers in 11 meetings across the country.

“We are currently reviewing all of our partnerships and implementing changes that make sense for our customers, dealers and Ford in the short, medium and long term,” spokesperson Marty Gunsberg said in a statement. . “We expect to announce more specific details in the coming weeks.”

“Ford is recommending that dealers suspend action items and qualifications related to the voluntary program until we complete our review and work with the Dealer Council in June.”

In response to market conditions, dealer feedback, supply chain and infrastructure delays, automakers in November reduced the number of Level 2 chargers required for a dealer to be “certified” in the EV program from five to two. announced that it must be done. next month. The criteria for becoming a “Certified Elite” has been reduced to three instead of five, and the requirement for a “Level 3” fast charger has been removed in 2026. The company has also reduced training requirements for its employees.

The company announced that EV-related spending has been postponed by $12 billion due to slowing growth in EV sales. The company’s Model e business unit is expected to lose up to $5.5 billion in 2024.

In December 2022, Ford CEO Jim Farley said two-thirds of dealers had enrolled in the EV charging program. About half of Ford’s dealer network is currently enrolled in the voluntary program, Gunsberg said. However, this requirement has sparked several lawsuits nationwide with mixed results.

bnoble@detroitnews.com

X: @BreanaCNoble



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