Ford Model e programme to be discontinued as EV demand weakens

With demand for EVs slowing, it'll soon be the end of the road for the Ford Model e dealership business in the US. Ford’s EVs will now be available at all Ford dealerships in the US.

Image: Ford

Ford introduced the Model e programme in the US in 2022, mandating dealerships which wanted to sell EVs to upgrade themselves and become ‘Certified’ or ‘Certified Elite’ dealerships. According to a report from Electrek, The Blue Oval will end the Model e programme on 1 July, meaning all its US dealerships will now be able to sell its EVs.

The new change in Ford’s domestic operations should considerably improve its EV sales and service network. Extending its EV line-up to regular dealerships will mean over 90% of Americans will be able to buy or service a Ford EV within a 25-mile distance. Existing Model e dealerships may no longer enjoy exclusivity, but they will still have an edge over the dealerships that haven’t upgraded so far.

Under the Model e programme, Ford’s dealerships which wanted to sell its EVs had to make some significant investments in charging infrastructure and customer service improvement. Moreover, they needed to be transparent about the price by showing it on Ford’s website. The last requirement alone was a big blow to dealerships profiteering from insane mark-ups on EVs that were in high demand but had limited availability.

Model e has had a big financial impact on Ford’s business. In 2023, the company made a $4.7 loss in earnings before interest and taxes. During the conference call to discuss Ford’s fourth quarter results, CFO John Lawler said that the company expected the losses to widen to $5-5.5 billion in 2024. In the first quarter of this year, Model e generated a loss of $1.3 billion, Ford President and CEO Jim Farley said during the earnings conference call to discuss the company’s quarterly results.

At the Deutsche Bank Global Auto Industry Conference on 11 June, Lawler said that the Model e business is “really about the second-generation of (EV) products.” “We will not launch a second-gen (EV) product unless it’s profitable within the first year and we are going to get a return on that capital we’re investing,” he added.

Lawler was presumably referring to a new electric truck (codename: Project T3) and a three-row SUV, both of which were originally scheduled to enter production in 2025. In April, Ford said it plans to start the sales of the former in 2026 and that it has rescheduled the latter’s market launch from 2025 to 2027.

1 Comment

about „Ford Model e programme to be discontinued as EV demand weakens“
20.06.2024 um 08:38
As shown in the latest 2024 Bloomberg NEF EV Outlook, global electric vehicle sales are increasing. There is no slowdown.

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