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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.

Lincoln Aviator concept takes a shine to Shinola

At the Pebble Beach Concours d'Elegance, Lincoln is displaying a special Aviator concept that was created in collaboration with the Detroit-based Shinola brand of watches and accessories. The SUV features unique exterior design elements, but the most eye-catching aspects are found in the cabin. The interior is awash in Shinola's whiskey-colored leather, which for once in an automobile actually looks like real cowhide. The rich, brown hue contrasts sharply with off-white cloth seat inserts and more off-white on the dash and door panels. Tying the two colors together is a neat center stripe on the seats that is another Shinola signature design element. The dash and center console also are adorned with a metal mesh trim, said to be inspired by Shinola watch bands. The exterior, meanwhile, is finished in pearl white, similar to Shinola's mother of pearl watch faces. The wheels and grille insert are matte copper. For now, the Aviator Shinola concept is just a design exercise. But a good portion of the Lincoln brand's recent comeback can be attributed to its emphasis on interior design, and specifically, an imaginative use of color and materials. So, we could see Lincoln making a collaboration like this official. After all, they've done it before. A Shinola Aviator is just the hipper, modern version of the same idea that sold the Continental Mark V back in the day, as the commercial below reminds us. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Lincoln plans pilot subscription service for pre-owned vehicles

Lincoln's foray into the world of monthly subscriptions will follow the mold of Ford's Canvas program and launch a pilot service offering a range of pre-owned 2017 Lincoln vehicles in West Los Angeles and the San Francisco area. Lincoln first announced plans for a subscription service on the sidelines of the L.A. Auto Show. The luxury automaker says its new service will allow customers to have a vehicle "as if it were their own," with a monthly payment that covers a prescribed mileage package and includes comprehensive insurance, warranty, maintenance and roadside assistance. It'll be based on Ford's nearly year-old Canvas program, also offered in the Bay Area and West Los Angeles. It offers pre-owned Ford vehicles on a monthly subscription basis, including insurance, maintenance and warranty coverage. Terms for that program are one to 12 months, with an ability to swap cars at any time. While Lincoln didn't announced pricing or a start date for its own subscription program, Canvas' existing service starts at $400 a month, not including tax and depending on vehicle and other options, for pre-owned Ford vehicles. Ford in February said its Canvas fleet has more than 600 customers who've logged more than 3 million miles in the two markets. Lincoln joins a growing list of automakers including Volvo, Cadillac and Porsche who are offering monthly subscription services as an alternative to traditional ownership or leasing. The subscription service will also come with Lincoln's Pickup & Delivery program, in which a valet picks up a customer's vehicle for service at any location and provides them with a loaner Lincoln before returning their vehicle. Lincoln also reiterated its plans to expand its Lincoln Personal Driver service first piloted in San Diego and Miami to Dallas, saying it will soon be integrated into the Lincoln Way mobile app. The service, previously called Lincoln Chauffeur, allows customers to call on a screened personal driver who can also assist with errands while the customers attend to other matters. The luxury brand is emphasizing "warm, human and effortless" services as a way to differentiate itself from its competitors. For more information on Vehicle Subscription Services, check out the Complete Guide. Related Video: