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Ford's Farley will challenge dealers to cut EV cost to customers by $2,000

DETROIT — Ford Motor Co Chief Executive Jim Farley will go to Las Vegas next week to roll the dice on a strategy to convince dealers to cut as much as $2,000 from the cost of delivering an electric vehicle to a customer. Ford has told dealers that one key topic for the meetings will be a discussion of new agreements that would govern how dealers sell Ford's expanding lineup of electric vehicles. Farley told analysts in July that Ford needs to cut $2,000 a vehicle out of selling and distribution costs to be competitive with Tesla Inc and other electric vehicle startups that sell directly to consumers without franchised dealers. About a third of those savings could come from what Farley called a "low inventory model," where customers order a vehicle and Ford ships it to the customer, rather than stocking vehicles on dealer lots for weeks or months. "We think that's about -- worth maybe $600, $700 in our system," Farley told analysts. Tesla can also adjust prices rapidly on its website, and keep most of the gain from a price increase. Ford declined to comment other than to say “we are excited to meet next week with our North America dealers to grow and win together.” Dealers said they expect Ford to outline minimum investments for charging stations and other equipment to support electric vehicle customers. A key question will be how quickly dealers will be required to install chargers, which dealers said can cost as much as $500,000. "The manufacturers so far have let us scale into it and I think Ford will hopefully do the same thing. You just can't say, 'Listen, we're going to sell 2 million electric cars five years from now and we expect you to put in five superchargers,'" said Rhett Ricart, owner of Ricart Ford, a large dealership in Columbus, Ohio. Tesla's success at selling electric vehicles without franchised dealers is putting pressure on all established automakers to overhaul their retail networks. A shift by Ford to a Tesla-style build to order system could come with caps on the profit margins dealers can earn on a new vehicle sale, some dealers said. "I see dealer margins still being very competitive, but they are going to shift," Farley said in July. Ford intends to put more emphasis on selling products and services after the initial vehicle sale, he said. Dealers said state franchise laws could give dealers leverage to resist efforts by Ford to set fixed prices or fixed fees for delivering electric vehicles.

Ed Welburn leaves a lasting legacy at GM design

General Motors design chief Ed Welburn retired July 1, and the soft-spoken stylist is leaving a lasting legacy at the automaker and on the industry. He became the first African American to lead design at a carmaker when he took over GM's top spot in 2003. Just six people have overseen the company's design, and Welburn followed in the footsteps of icons like Harley Earl and Bill Mitchell. When Welburn was given expanded global oversight in 2005, it wasn't ceremonial. He helped unite the company's sprawling design empire, and today is in charge of 2,500 people who have a hand in designing GM cars. "He nurtured a creative, inclusive, and customer-focused culture among our designers that has strengthened our global brands," Mary Barra, GM chairman and CEO, said in a statement." Welburn took the helm when GM and the industry were shaking off a general styling malaise that pervaded the 1980s and 1990s. During his 13 years in charge, he took risks, produced a wide range of styles for everything from hybrids to sports cars to big trucks, and leaves GM design in a better place. Welburn's replacement, Michael Simcoe from GM's international design unit, has big shoes to fill. News & Analysis News: Tesla attracted more than 325,000 preorders of the Model 3 in about a week. Analysis: If anything, the Model 3 is more popular than many expected. Elon Musk tweeted that surprising figure on Thursday, and he said just five percent ordered the maximum number of two. That seems to indicate actual owners rather than speculators are fueling the demand. With a starting price of $35,000 before incentives and an electric range of 215 miles, the Model 3 is the Tesla that's attainable for a lot of people. Clearly, that notion is resonating. News: Lincoln has drawn 40,000 hand-raisers for the Continental. Analysis: Okay, that's not a Tesla figure, but it's still an encouraging sign for Lincoln that one of its most famous and historic names still resonates in 2016. It also demonstrates using a real, albeit slightly dusty name, was the right call for the MKS replacement. "No other Lincoln vehicle has generated this much interest in this little time," Lincoln president Kumar Galhotra said in New York last month. The concept that debuted a year ago put Lincoln back on the map, and the production version remains true to that promise. It will stand out on the road when it arrives this fall, and ultimately, that kind of style will determine Lincoln's future.

Even Ford executives had issues with MyFord Touch

MyFord Touch is one of the auto industry's more controversial features. The media broadly panned the infotainment system developed with Microsoft for its slow responses and reliance on voice commands to navigate its deep menus. Oh, and Ford executives weren't big fans, either. Newly revealed court documents in a California class-action lawsuit demonstrate the level of venom Ford employees, both big and small, reserved for the Blue Oval's infotainment system. An error caused Bill Ford's navigation system to crash, leaving the family scion stuck on the side of the road in an unfamiliar area. The documents, unearthed by Forbes, detail current CEO Mark Fields' aggravations with MFT, too. A mechanic emailed an image of a cracked infotainment screen on an Edge to one of Ford's top Sync engineers, Kenneth Williams, suggesting "Mark Fields may have been a little aggravated with the system." But Ford and Fields' issues are nothing compared to the woes of the engineers that had to work on MFT. In a collection of emails obtained by Forbes, one engineer called the system "a polished turd," while another simply said, "These poor customers." And after one engineer suggested using a photo of Ford's Oakville Assembly Plant – home of the Edge, Flex, Lincoln MKX, and MKT production – as a background for the system, one of his coworkers said in an email that someone should instead Photoshop the image to read "abandon hope all ye who enter here," the Detroit News reports. Another summed up the problem, saying: "Ford's quality reputation is completely on the line ... another model year with the same crap is not acceptable." MyFord Touch almost single-handedly torpedoed Ford's reputation in widely reported quality metrics, including JD Power and Consumer Reports. Ford responded with a refreshed Sync3, a wildly improved rethink of its infotainment system that is far more responsive and easier to live with every day. Related Video: News Source: Forbes, The Detroit NewsImage Credit: Ford Government/Legal Ford Lincoln Technology Mark Fields sync 3