Ford Canada has extended the deadline for dealers to join in its electric vehicle programmes once more, as the two parties work to settle the issues that some shops are spending up to $1.3 million to advertise and repair the automaker’s EVs beginning in 2024.
Ford’s 440 dealers have until February 17 to participate in the Model e Certified or Model e Certified Elite programmes, according to Automotive News Canada. Ford has not specified how many sellers have signed up so far. It had set a deadline of December 16 but later extended it to December 30.
“The dealer consultation process on the Model e programme began last spring, and the company has extended the enrolment deadline to continue these essential talks,” Ford said in a Jan. 13 announcement.
In a sign of persistent vendor dissatisfaction, Toronto lawyer Shaun Laubman indicated that he had been retained by a number of outlets, though he did not specify how many. Neither Laubman nor Ford would confirm whether or not sellers had taken legal action.
Some larger-market stores have signed up for Model e packages, claiming that the infrastructural enhancements are comparable to owning a Ford franchise. Others are collaborating with the Ford Dealers RoundTable Association (FDRA) to fix issues, retailers told Automotive News Canada.
According to a vendor who requested anonymity, the FDRA received a response from Ford “just before Christmas,” but it “did not go far enough in examining the criticisms or prospective improvements for all.”
The vendor who has not agreed to the EV certification packages is not one of those represented by Laubman.
Ford predicts that sellers will pay approximately $1.3 million to join the Model e Certified Elite programme and approximately $560,000 for Model e Certified. According to Ford, charging infrastructure, including DC rapid chargers, accounts for almost 90% of the cost.
Certified Elite dealers may have first dibs on available EVs, while Model e Certified dealers will “concentrate on ownership and charging with restricted built-to-order sales,” according to a Ford official. Dealers who do not participate in both programmes will most likely be limited to selling ICE and hybrid vehicles from January 1, 2024. The next opportunity to join the Model e-Certified programme will most likely be in 2027.
In a release, Ford noted that the packages provide its dealership community with “a competitive advantage as we play to win in the BEV space.”
However, the anonymous vendor noted that the infrastructure assistance provided by Ford programmes is a waste of money for his faraway business because there are few if any public chargers within “several hundred kilometres.”
The vendor also claimed that rural customers who travel to a larger market to purchase an ICE Ford or Lincoln may still get it serviced domestically, but that won’t be possible if Model e Certified dealers are the only ones authorised to service EVs. The vehicle may need to be towed hundreds of kilometres to a licenced vendor for service.
The FRDA’s representative declined to comment on the status of negotiations.
Dealers in three other states have also objected, claiming that the Model e Certified programme breaches franchise laws. Richard Sox, a Florida-based attorney, told Automotive News Canada that he is representing four stores in New York. Although Canadian franchise law requirements differ from those in US states, Sox claimed that the most controversial issues might apply to shops on either side of the border.
Sox reported that the US dealerships opposing the Model e packages claim that the infrastructure funding demanded by Ford much exceeds what is “reasonably necessary” to sell and maintain EVs. The obligation to have an external charger available to the public 24 hours a day, seven days a week is not only costly, but it also carries the risk of liability in the event of a malfunction or accident.
The dealerships also claim that the Model e programme breaches franchise laws by mandating them to invest in costly infrastructure changes that aren’t required for their dealership’s operation. They further say that the programme provides Ford too much control over the operations of the dealerships and that the company has not appropriately paid them for the program’s additional expenditures.
The issue emphasises the difficulties that automakers confront as they convert to electric vehicles, which necessitate considerable investments in charging infrastructure and other specialised equipment. While some dealers are prepared to invest in the Model e programme, others believe it is too pricey and unnecessary for them to continue operating their dealerships.
It also emphasises the conflict between automakers and dealers over control and ownership of EV charging infrastructure. As more electric vehicles hit the road, the demand for accessible charging infrastructure grows, and automakers are seeking greater control over the creation and administration of these charging stations.
Finally, some of Ford Canada’s dealers are objecting to the cost of modernising their facilities to sell and service electric vehicles. As it attempts to address concerns voiced by some shops, the manufacturer has extended the deadline for dealers to enrol in its electric vehicle packages. The issue emphasises the difficulties that automakers confront as they convert to electric vehicles, which necessitate considerable investments in charging infrastructure and other specialised equipment. It also emphasises the conflict between automakers and their dealers over control and ownership of EV charging infrastructure, as well as the importance of manufacturers working closely with their dealers to enable a smooth transition to electric vehicles.
