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Ford sets rules for dealers selling electric cars: Fixed no-haggle pricing

Are you tired of reading about shady dealers marking up cars and taking advantage of buyers? Apparently, Ford is, too. According to The Drive, The Blue Oval issued a warning at its annual dealer conference, telling franchisees that they have until the end of October to decide whether to commit to fixed, no haggle pricing or be cut out of selling EVs. Ford is far from the only auto brand watching its dealers make up their own pricing, but it’s been one of the quickest to act on the issue. Earlier this year, the automaker split its business operations, with one part of the company focusing solely on electric vehicles and powertrain development and the other continuing FordÂ’s gas vehicle development. If dealers want to sell EVs, theyÂ’ll have to opt into the rules for Ford Model E (the brandÂ’s electric business arm) — one of which is a commitment to transparent, no-haggle pricing. Once theyÂ’ve agreed to the terms and conditions, Ford dealers become Model E Certified. The automaker views this as an opportunity to push more of its network toward a model that Tesla and other startups adopted. Many younger buyers favor direct sales, as it limits the in-person time required to buy a car and makes the purchase process easier for many. This is undoubtedly an annoyance for dealers, but theyÂ’ve long been asked to make investments to promote new products and initiatives. The shift to electrification has required the franchisees to make even more significant commitments, and in some cases, sizable financial investments, to meet automakersÂ’ new requirements. Automakers, including Ford, have provided off-ramps for dealers not interested in making the switch to EVs. Cadillac saw an exodus of more than a third of its dealer network after it issued new rules for electric vehicle sales. Ford will likely see some attrition with this policy change, but itÂ’s offering dealers an opportunity to “spend more to make more,” so to speak. Stores already committed to selling EVs can promise to invest an additional amount – up to half a million dollars – to build additional chargers and invest in other equipment. Those that do can earn an “Elite” designation on their Model E certification and are not subject to allocation limits and other speedbumps that other certified dealers see. Earnings/Financials Green Ford Lincoln Car Buying Car Dealers Electric

Lincoln electric SUV to use Ford-backed Rivian's 'skateboard' chassis

DETROIT — A battery-powered Lincoln SUV, due in mid-2022, will be the first Ford Motor Co. vehicle built on a custom electrified chassis that resembles a skateboard, which was developed by Ford-backed startup Rivian, according to several people familiar with the program. The all-wheel-drive Lincoln SUV could compete against Rivian's R1S, an electric sport utility vehicle slated to go into production in early 2021 that will be priced from $72,500. Both models will use Rivian's so-called skateboard, a flexible platform that combines electric motors, batteries, controls and suspension. On Tuesday, Ford declined to comment. Rivian did not respond to a request for comment. The new Lincoln, which carries the internal program code U787, also could compete with premium offerings from others, including General Motors Co <GM.N>, which plans to introduce at least two new electric SUVs by 2023, one for Cadillac and one that could revive the Hummer name, sources have said. Ford invested $500 million in Rivian this year and plans to help it begin production next year at a former Mitsubishi plant in Normal, Illinois. When Ford made the investment, it said it would use Rivian's skateboard to develop its own electric vehicle, but did not disclose details. It is not clear where Ford intends to build the Lincoln SUV, which will be among the first of several battery-powered utility vehicles planned for Ford's premium brand in North America and China, according to supplier sources familiar with those programs who asked not to be identified. Ford expects to introduce a compact Lincoln electric crossover in late 2021 or early 2022 and a mid-size companion in 2023, the sources said. The U.S. auto industry plans to invest billions of dollars over the next few years to build all-electric pickups and SUVs, sectors of the market that have been among the most profitable, especially for Detroit-based automakers. But analysts have questioned whether demand from consumers and commercial customers will come close to matching production. Founded in 2009, Rivian has raised $1.9 billion from investors, including e-commerce giant Amazon, which has ordered 100,000 electric delivery vehicles from Rivian. The first Amazon vans will be built in Normal and are to be delivered in 2021. Ford aims to sell an electric F-series pickup in late 2021, sources have said.

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