Ford has told dealers they can pause capital investments related to selling electric vehicles (EV) until the company completes a review of its requirements.
The automaker had set a June 30 deadline for dealers to invest in Level 2 EV charging stations to qualify for its Model e certification program to be able to sell EVs. The decision comes after Ford executives completed a “Dealer Engagement Tour,” hearing from more than 1,000 dealers over 11 meetings across the country.
“Ford recommends that dealers pause their action items and qualifiers related to the voluntary program until we complete our review and work with the Dealer Council in June,” spokesperson Marty Günsberg said in a statement to The Detroit News.
Series of EV Delays
This is the latest delay for its EVs for the Detroit car maker that started last November when it delayed the launch of a three-row SUV by two years, in light of slower-than-expected growth of EV sales because of affordability concerns, lack of charging access and other barriers.
The automaker has delayed $12 billion in EV-related spending as a result of slowing EV sales growth. Its Model e business division expects to lose up to $5.5 billion in 2024.
When it comes to the certification program, the automaker in November 2023 said for dealers to be “certified” in the EV program, they had to have two Level 2 chargers, down from five, by the end of next month what officials said was a response to market conditions, dealer feedback, supply chains and infrastructure delays.
At that time, “standard certified elite” fell to three instead of five and a requirement from a “Level 3” fast charger for 2026 was removed. The company also reduced employee training requirements.
Ford Reviewing Options
“We’re now in the process of reviewing all that collaborative engagement and turning it into immediate, mid-term and long-term changes where it makes sense for our customers, our dealers and Ford,” said Günsberg.
“We will have more specific details to share in a few weeks.”
In December 2022, Ford CEO Jim Farley said two-thirds of dealers had signed up for the EV charging program and officials said about half of Ford’s dealer network is currently enrolled in the voluntary program. But it has not been smooth sailing as the requirements have attracted a few lawsuits with mixed results nationally.
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