1,920 Ford dealers have enrolled in Model e program for 2024-2026 period

[dbsb3233]

That's what I was thinking too. Especially 120kw, customer-facing, and pay-for-use. That's clearly not just a requirement for being able to service the vehicles (a 25kw charger in the service bay would do that). Reasonable requirements to be able to service them make sense, but this is just forcing dealers build a refueling network for the public, which is likely way outside anything franchise agreements or dealership laws require.

If Ford really wants to build a DCFC charging network (an bad idea IMO but whatever), they should pay for it themselves, not try to force it on dealerships (which are typically poor locations for DCFC anyway).

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[Mirak]

I haven't read the petition/complaint, but I believe the primary complaint is that Ford committed a bait & switch by previously requiring dealers to invest in a lot of expensive, specialized equipment to service EVs, and then changed the deal by now requiring these initial buy-ins. Putting aside the irony of dealerships complaining of bait & switch tactics, they might have a pretty good point.

 

[TRP]

In the musical instrument business a store that wanted to sell Gibson guitars, for example, was required by Gibson to commit to a significant $$ amount per year to qualify as a "Gibson Dealer". If you couldn't afford that buy in, for a smaller $$ amount you could become an "Epiphone Dealer" ( import brand owned by Gibson). If you couldn't afford that, you found another brand to sell.

Is this not a similar situation for Ford and its dealer network? ?‍

 

[Jimrpa]

The issue is Ford cutting them off from EV allocations if they don't comply with these expensive requirements (like the DCFC charger), that could be seen as excessive and not actually necessary to sell/service vehicles. Restricting vehicle allocations to dealers is damaging to those dealers.

What it comes down to is what the franchise agreements say, and what the state laws are that regulate dealership agreements. That's probably gonna vary by state. That's contract law, and comes down to whether it's determined that Ford is breaking the contract.

I really don't know, but with multiple dealers in multiple states already filing complaints and even starting lawsuits, I'm guessing they may have a valid case. One or two lone wolves I'd write off, but this sounds more widespread. But I really have no idea what the actual contracts say, or how to read them anyway.

People still haven’t clearly explained why this is any different than the rules put in place to sell Ford GTs or other specialty vehicles:
https://www.roadandtrack.com/new-cars/news/a29961/ford-gt-service-requirements/
The rules may be different but having rules seems to be the same concept.

 

[sotek2345]

That's what I was thinking too. Especially 120kw, customer-facing, and pay-for-use. That's clearly not just a requirement for being able to service the vehicles (a 25kw charger in the service bay would do that). Reasonable requirements to be able to service them make sense, but this is just forcing dealers build a refueling network for the public, which is likely way outside anything franchise agreements or dealership laws require.

If Ford really wants to build a DCFC charging network (an bad idea IMO but whatever), they should pay for it themselves, not try to force it on dealerships (which are typically poor locations for DCFC anyway).

Sales volume plays into this as well. Ford requires vehicles to be sold with 100% charge as part of the PDI. If a dealer starts selling them in volume (multiple per day), higher speed fast chargers will be needed to support the throughput.

 

[dbsb3233]

People still haven’t clearly explained why this is any different than the rules put in place to sell Ford GTs or other specialty vehicles:
https://www.roadandtrack.com/new-cars/news/a29961/ford-gt-service-requirements/
The rules may be different but having rules seems to be the same concept.

The requirements to be able to service it are a different thing than forcing them to sell charging services to the public though. That's like forcing them to install gas pumps to sell gas refuels to the public.

 

[AKgrampy]

Sales volume plays into this as well. Ford requires vehicles to be sold with 100% charge as part of the PDI. If a dealer starts selling them in volume (multiple per day), higher speed fast chargers will be needed to support the throughput.

Agreed and that is why it should make business sense on not be forced. For instance what if there were 4 DCFC’s located nearby. The dealer could just use them to top off their vehicles.

 

[AKgrampy]

I agree with you!

 

[Jimrpa]

Why can they push changes on Lincoln dealers theb
i see your point and it makes sense. I still am not sure how imposing new requirements to continue to sell a class of cars is illegal? As another example, the requirement for Lincoln boutiques to continue selling Lincoln’s?

 

[dbsb3233]

Why can they push changes on Lincoln dealers theb

i see your point and it makes sense. I still am not sure how imposing new requirements to continue to sell a class of cars is illegal? As another example, the requirement for Lincoln boutiques to continue selling Lincoln’s?

I'm not sure what's in the actual franchise contracts between Ford and dealers, but states usually have auto franchise regulations that protect each side from overreach. The first lawsuits were filed in NY. Here's the regulations there. Check out the items under S 463 Unfair business practices by franchisors.

https://ypdcrime.com/vt/article17a.php

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