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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

The USPS needs 180,000 new delivery vehicles, automakers gearing up to bid

Winning the New York City Taxi of Tomorrow tender was a huge prize for Nissan, even though the company is still working through the process of claiming its prize. The United States Postal Service has begun the process to take bids for a new delivery vehicle to replace the all-too-familiar Grumman Long Life Vehicle, and that will be a much larger plum for the automaker who wins it, perhaps worth more than six billion dollars. The Grumman LLV is an aluminum body covering a Chevrolet S-10 pickup chassis and General Motors' Iron Duke four-cylinder engine. The USPS bought them from 1987 to 1994, and the 163,000 of them still in service are a monumental drain on postal resources: they get roughly ten miles to the gallon instead of the quoted 16 mpg, drink up more than $530 million in fuel each year, and their constant repair needs like the balky sliding door and leaky windshields have led the service to increase the annual maintenance budget from $100 million to $500 million. A seat belt is about as modern as it gets for safety technology, and the USPS says that assuming things stay the same, it can't afford to run them beyond 2017. Last year it put out two triage requests for proposals seeking 10,000 new chassis and drivetrains for the Grumman and 10,000 new vehicles. The LLV is also too small for the modern mail system in which package delivery is growing and letter delivery is declining. The service says it doesn't have a fixed idea of the ideal "next-generation delivery vehicles," but it listed a number of requirements in its initial request and is open to any proposal. Carriers have some suggestions, though, saying they want better cupholders, sun visors that they can stuff letters behind, a driver's compartment free of slits that can swallow mail, and a backup camera. The request for information sent to automakers pegs the tender at 180,000 vehicles that would cost between $25,000 and $35,000 apiece, and it will hold a conference on February 18 to answer questions about the contract. GM is the only domestic maker to avow an interest, while Ford and Fiat-Chrysler have remained cagey. Yet with a possible $6.3 billion up for grabs and some new vans for sale that would be advertised on every block in the country, we have a feeling everyone will be listening closely come February 18. We also have a feeling the LeMons series is going to be flooded with Grummans come 2017. News Source: Wall Street Journal, Automotive News - sub.

Ford Expedition, Lincoln Navigator recalled for fire risk

Owners of some 2021 Ford Expedition and Lincoln Navigator SUVs are being urged to park their vehicles outdoors and away from structures until they can be taken to dealers for repairs. Ford issued a recall covering 39,000 vehicles due to engine fires under their hoods, and it's not certain at this point what's causing the flames to start. According to documents posted on the National Highway Safety Administration's website, "The remedy is still under development." Ford says it has reports of 16 under-hood fires, with 14 of those happening in vehicles owned by car rental companies. The fires can happen even while the engine isn't running. According to Ford, "Some customers have reported a burning smell and smoke from the front passenger engine compartment while driving." The fires seem to be starting "in the rear of the engine compartment near the passenger side of the vehicle." Despite the under-hood fire risk, Ford is not at this time recommending that owners stop driving the vehicles. "We are working around the clock to determine the root cause of this issue and subsequent remedy so that customers can continue to enjoy using their vehicles," Jeffrey Marentic, general manager of Ford passenger vehicles, said in a statement. Ford says the fires appear to be limited to SUVs built from Dec. 1, 2020 to April 30, 2021 and says it has no fire reports from vehicles built before or after those dates. In a separate recall, Ford is also calling in about 310,000 heavy-duty trucks because the driver's air bag may not inflate in a crash. That recall covers certain 2016 F-250, F-350, F-450 and F-550 trucks. According to documents posted by NHTSA, dust can get into the airbag wiring in the steering wheel, which can cut electricity to necessary components. To fix the problem, dealers will replace the steering wheel's wiring. And in a third recall, Ford announced it is bringing in 464 Mustang Mach-E electric SUVs from 2021. A software problem in the electric vehicle can cause unintended acceleration, deceleration or a loss of drive power in all-wheel-drive vehicles. NHTSA documents say that the powertrain control computer may not detect a software error. The problem will be fixed by dealers or by an online software update.