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

[Mach1E]

Ford CEO Jim Farley has just announced today that 1,920 Ford dealers (out of almost 3,000) have enrolled in the Model e program for 2024 to 2026. Here's the breakdown of what tiers the participating dealers chose:

• 1,659 chose the Certified Elite tier.
• 261 chose the Certified tier.

Under the program, Ford dealers can choose from one of two tiers to become “EV certified.” The lower tier requires a $500K initial investment and includes:

• Repair and maintenance
• One public DC fast charger
• No EVs to show (BTO only)
• No presence on Ford.com.

The higher “Certified Elite” tier includes two public DC fast chargers, demo units, rapid replenishment, and a presence on Ford.com but will cost around $1 million to $1.2 million.

Dealers not opting to participate in the Model e program will have another opportunity to participate come 2025.





Summary of the different tiers by @Mach-Lee

Ford Next-Generation EV Certification Requirements (by December 2, 2022):​

• At least two 32A or greater Level 2 chargers
  • At least one "Front" L2 EVSE available for customer use
    • At least one "Back" L2 EVSE or 14-50 outlet for service use

NEMA 14-50 outlets for at least 10% of service bays​

• All required EV shop equipment including
  • Pneumatic TIM applicator gun
    • Battery lift table
    • Smoke machine and adapters for leak testing pack
    • Rescue and cell balancing chargers
    • F150 Lightning and Mach-E service tool kits
    • Dealership personnel have completed all required EV training
    • Key sales, finance, service, and parts employees must complete basic EV training
    • At least one EV-certified technician that can perform HV battery repair

​

Ford Model e Certified Requirements (by January 1, 2024):​

• At least five 80A Level 2 chargers ($5k/ea plus installation)
  • Two 32A chargers may replace one 80A charger
    • Must be accessible on Blue Oval Charge Network
    • Six 80A chargers required by 2026
    • At least one 120 kW or greater Level 3 charger ($85k/ea plus installation)
    • Must have two CCS connectors
    • Must be for-pay on Blue Oval Charge Network
    • Must support Plug and Charge
    • Must be available to the public 24/7 in a secure, well-lit location
    • Must share real-time availability via cellular
    • NEMA 14-50 outlets for at least 50% of service bays
    • Up to a maximum of 11 outlets

All current EV service tools required​

5000 lb forklift​

Required Model e employee training​

Limit of 25 EVs sold per year​

• Must sell EVs online with non-negotiable pricing
  • Final transaction price must match price listed on Ford.com

​

Ford Model e Certified Elite Requirements (by January 1, 2024):​

All of the above plus:​

• At least two120 kW or greater Level 3 chargers
  • Three L3 chargers required by 2026

Additional training requirements​

No limit on EVs sold per year​

Dealers that do not meet the new Model e requirements by January 1, 2024 will stop selling EVs at that time.​

Let’s do some math. The 1920 dealers will invest about $2.1 Billion in this program.

Current Mach E sales are about 40,000 per year. Lightning maybe 100,000/yr.

That’s about 72 electric car sales per year per certified dealer. But the base level dealers can only sell 25.

If they get $2000 NET profit per car…… it’ll take a DECADE to break even on their $500,000 investment. If somehow they net $4k (highly unlikely with fixed pricing), that’s still a 5 year break even.

The math just doesn’t work from a profitability standpoint.

From a consumer standpoint…… do we even WANT a DCFC at our dealerships? Even if it was free I would never use it. And what are the chances it would even be available?

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[dbsb3233]

Let’s do some math. The 1920 dealers will invest about $2.1 Billion in this program.

Current Mach E sales are about 40,000 per year. Lightning maybe 100,000/yr.

That’s about 72 electric car sales per year per certified dealer. But the base level dealers can only sell 25.

If they get $2000 NET profit per car…… it’ll take a DECADE to break even on their $500,000 investment. If somehow they net $4k (highly unlikely with fixed pricing), that’s still a 5 year break even.

The math just doesn’t work from a profitability standpoint.

From a consumer standpoint…… do we even WANT a DCFC at our dealerships? Even if it was free I would never use it. And what are the chances it would even be available?

They're likely counting on the ramp-up in sales volume year after year that's expected. But still.

I never use DCFC near home, so my dealer having it wouldn't benefit me at all. There would probably be a few I might use on road trips off the interstates in more rural areas... if they participate. But of course those are the dealerships less likely to sign on.

You make a good point about availability too. On a road trip, it's harder to count on a stop where there's only 1 or 2 DCFC chargers. It's similar to counting on using a hotel L2 when they only have 1 or 2. More options are better than nothing, of course, but it doesn't look like a very good one for road trip planning. Travel plazas, Walmarts/Targets, restaurants, malls, etc are better fits, especially right off road trip travel routes.

 

[moparguy]

That isn't how it works. They don't set the price. The commodities market does, based on a myriad of forward-looking supply-demand factors.

That's probably what he heard on CNN, can't blame him, my buddy works for an oil company, California is imposing new taxes and fees on them, they are in their final stages of the negotiations, it is bad very bad, but them and other big distributors are very close from actually boycotting California and stop sending gas to tech the state a lesson, hopefully whatever being imposed doesn't go throught.

 

[RickMachE]

" But, OJ walked, so who the heck knows."

Yeah, because a murder trial is comparable to this legal situation in that they are, legal situations...

To think that Ford didn't spend a fortune, and engage with outside counsel, with expertise in these matters is nonsense. Will it be challenge? Yes. Will they be successful? No.

This is what is referred to in the legal trade as a nothing burger. The fact that some attorneys were willing to take the case proves that they are willing to bill for their legal time and make a fortune on it.

 

[devmach-e]

That's probably what he heard on CNN, can't blame him, my buddy works for an oil company, California is imposing new taxes and fees on them, they are in their final stages of the negotiations, it is bad very bad, but them and other big distributors are very close from actually boycotting California and stop sending gas to tech the state a lesson, hopefully whatever being imposed doesn't go throught.

California has a unique formula for the gasoline used in California. No refinery outside of California makes fuel for California. So big distributors refusing to send gasoline to California is already essentially in effect. Now, if they were refusing to send crude oil to California, that's a different story.

 

[dbsb3233]

" But, OJ walked, so who the heck knows."

Yeah, because a murder trial is comparable to this legal situation in that they are, legal situations...

To think that Ford didn't spend a fortune, and engage with outside counsel, with expertise in these matters is nonsense. Will it be challenge? Yes. Will they be successful? No.

This is what is referred to in the legal trade as a nothing burger. The fact that some attorneys were willing to take the case proves that they are willing to bill for their legal time and make a fortune on it.

The dozens of dealerships and their associations filing challenges and lawsuits have legal counsel too though, so I'm not sure that argument works very well.

The part that seems likely in violation of the franchise laws (at least the NY state ones I linked above) is forcing them to provide a whole new service that they never had before. Minimum requirements for servicing vehicles seems reasonable, as servicing vehicles is already a core part of their business. But offering public refueling is not. That's paramount to forcing them to install gas pumps for sale to the public.

If the requirement were to install DCFC chargers internally for servicing vehicles, that seems more defensible. But Ford made the requirement "public-facing, 120kw DCFC, with payment processing" instead. That's clearly a new retail service, not simply a vehicle servicing tool.

 

[RickMachE]

Different legal entity.

 

[Gloff]

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.

Some dealers did have on site pumps, most got rid of them because they're a pain to maintain compliance. FWIW, I think it's great that Ford wants to create a better charging network, more stations are better than less.

My thought is Farley and the brass/model e team see value in the dealership location for charging as many dealers are near services like shopping, food, etc... From the dealer perspective, it could be an additional revenue source and, as always, having a customer physically present gives opportunity to pick up ancillary business through accessories, parts, service, and new vehicle purchases. The infrastructure and installation costs are high, and I think Ford should help subsidize it for the dealer body; it will help Ford with BOCN visibility, availability, not to mention it's easy advertising as pointed out by another poster.

 

[Motomax]

That's probably what he heard on CNN, can't blame him, my buddy works for an oil company, California is imposing new taxes and fees on them, they are in their final stages of the negotiations, it is bad very bad, but them and other big distributors are very close from actually boycotting California and stop sending gas to tech the state a lesson, hopefully whatever being imposed doesn't go throught.

They’ve been doing that for decades in California. They constantly come up new regulations that require installation of untested unreliable equipment that cost millions of dollars to implement. California keeps pushing the idea that all the profits come from Californias high prices, it doesn’t. Their new profit cap rule they want to implement is all smoke a mirrors. California isn’t that profitable.

 

[Mach1E]

Nah, was just trying to keep it simple.

Didn’t want to have to explain an assumed rate of return.

 

[Jimrpa]

Let’s do some math. The 1920 dealers will invest about $2.1 Billion in this program.

Current Mach E sales are about 40,000 per year. Lightning maybe 100,000/yr.

That’s about 72 electric car sales per year per certified dealer. But the base level dealers can only sell 25.

If they get $2000 NET profit per car…… it’ll take a DECADE to break even on their $500,000 investment. If somehow they net $4k (highly unlikely with fixed pricing), that’s still a 5 year break even.

The math just doesn’t work from a profitability standpoint.

From a consumer standpoint…… do we even WANT a DCFC at our dealerships? Even if it was free I would never use it. And what are the chances it would even be available?

You don’t know what other EVs are soon to be released. For example, an electric expedition should be a piece of cake. And if Ford doesn’t have an electric explorer pretty much ready to go, someone should be shot. I suspect the main constraint is battery availability (and remote frunk release software ?)

 

[Mach1E]

You don’t know what other EVs are soon to be released. For example, an electric expedition should be a piece of cake. And if Ford doesn’t have an electric explorer pretty much ready to go, someone should be shot. I suspect the main constraint is battery availability (and remote frunk release software ?)

You don’t.

But if you’re limited to 25 sales per year, does it matter? They could go all electric……. And your dealership could only sell 25 cars.

Wouldn’t change the math. And the ROI sucks.

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