Badger_Prof
Well-Known Member
- First Name
- Randy
- Joined
- Jun 22, 2020
- Threads
- 4
- Messages
- 759
- Reaction score
- 1,539
- Location
- Wisconsin
- Vehicles
- Prior--Leaf,Bolt EV. Mustang Mach-E Premium AWD ER
I do not totally disagree with you and I understand this could be, in part, a chicken or egg problem. However, at the moment it appears there are relatively few sales in the charging desert (because of lack of chargers and other factors?). At the same time, there seems to be an excess of orders overall (i.e., Mach-E demand exceeds Mach-E supply). Directly supporting or not supporting charging infrastructure in areas of low demand for the EVs will probably not have much impact on short term overall sales--the sales may disproportionately go to areas where there is good charging infrastructure but the sales will still be made. By the time supply exceeds demand, it is likely that the current deserts will be adequately populated with charging oases. Is this fair? It depends on how you define fair and whether it is the job of Ford or Ford dealers to lose money short term by building expensive infrastructure that will likely be redundant in a few years. As noted by others, there actually are DC chargers available for your route albeit at a pretty skimpy level.There absolutely is a business case. I'm not saying they should be free but if you don't have chargers in non-urban areas why would 40% of Americans ever buy EV's. That argument makes no sense.
If you want to build a business case, identify the profit per Mach-E sold by a rural Mach-E dealer and then calculate how many would need to be sold to break even (i.e., make zero profit) on a $100,000 DC charger/installation. This, of course, would not really be a break even case, it would be a loss of 100% of profit from the sales of Mach-Es. For a solid business case, you would need to estimate the number of incremental Mach-E sales that would be realized because a dealer installed a DC charger. That $100,000 would need to be covered by the number of incremental sales. In your model, could you assume a dealer would be happy to put all of their incremental sale profits into the build costs of a DC charger? My guess is that this business case would come pretty close to the business case that would be made for putting a DC charger at a different location that also has limited draw for charging sales. A business case for placing a charger at a Ford dealership would likely be much weaker than the business case for placing a charger at a more accessible convenience store that may sell gas but that also sells food and drink and has readily accessible restrooms. If you were going to invest your own money to install a DC charger along your planned route in hopes of making a profit from the investment, would you locate the charger at a Ford dealer or at a convenience store in an accessible location? Generally speaking, investors don't make investments to lose money. Ford dealers generally don't make investments to lose money. So to build the business case for a Ford dealer to invest in a DC charger, as the man said, "Show me the money."
Sorry about the lengthy response but I would hope that Ford dealers would make rational investments that are expected to make money. It does not seem many of them have been shown the business case for making money by investing in a DC charger. Maybe this could change if a zillion EVs can be sold in those rural areas but I don't see that happening short term before the infrastructure is built out by EA and others.
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