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Ford gets out of car subscriptions, sells Canvas to rival Fair

Ford says it’s selling its Canvas subscription service to competitor Fair, getting out of the subscription game after less than three years. Terms of the deal were not announced. Ford acquired Canvas in 2016 as a wholly-owned subsidiary based in San Francisco as a service to pilot subscriptions to Ford and Lincoln vehicles, eventually rolling out to Los Angeles and Dallas. The company said it had amassed around 3,800 subscribers in that time, who will have the opportunity to join Fair when their current subscriptions end and will receive more information from both subscription companies. But that number pales in comparison with Santa Monica, California-based Fair, which claims more than 45,000 subscriptions in 30 markets since launching in 2017. Ford was always fairly quiet about Canvas, and Automotive News last year reported that Lincoln executives expressed surprise over soft demand, saying that subscribers were looking for short-term solutions and often dropped out after just a few months. Ford is also in cost-cutting mode under CEO Jim HackettÂ’s $11 billion restructuring plan. The Blue Oval joins Cadillac, which put its $1,800-a-month Book By Cadillac subscription service on ice late last year, citing higher costs and fewer customers than expected. Cadillac has pledged to eventually relaunch the service as a pilot in select cities, but mumÂ’s been the word since. More recently, VolvoÂ’s Care by Volvo subscription service has come under scrutiny from dealers and an investigation from the California Department of Motor Vehicles and has made changes to its program. Thought it also has added the XC60, XC90 and V60 to the list of available vehicles. Fair touts itself as a “commitment-free” solution, with all-inclusive plans covering 24-7 roadside assistance, routine maintenance, insurance and other perks. It uses a mobile app to get customers prequalified, and it analyzes their eligibility and targets an affordable range of monthly payments. Customers then shop for cars and sign up for one via an initial payment that ranges by vehicle type, with the ability to keep the cars as long as they want and drop the service at any time. It peddles used cars from more than 30 different brands, none more than six years old or with more than 70,000 miles on the odometer. Fair on Tuesday announced it has raised $500 million in loans from a group of creditors, including Mizuho Bank and Japan's SoftBank, as it looks to expand its leasing services to Uber drivers.

Ford and Lincoln recall about 170,000 vehicles over defective rear-view camera

Ford and Lincoln have jointly issued a safety recall that includes nearly 170,000 vans and SUVs built between the 2018 and 2023 model years. The vehicles included in the campaign are equipped with a rear-view camera whose image can cut out while the driver is backing up. Assigned recall number 23V-598 by the National Highway Traffic Safety Administration (NHTSA), the campaign includes the following cars: 7,649 units of the 2020-2023 Aviator fitted with the standard rear-view camera and built from October 19, 2019, to August 17, 2023. 70,600 units of the 2018-2021 Navigator fitted with the 360-degree camera and built from March 16, 2017, to December 23, 2021. 66,740 units of the 2022-2023 Transit fitted with either camera system and built from February 26, 2021, to August 17, 2023. 24,468 units of the 2021 Bronco fitted with the 360-degree camera and built from September 23, 2020, to December 22, 2021. Ford explains that the defect is present in all of the 169,277 vehicles included in the campaign. While these are different cars equipped with different technology, they all suffer from the same problem. The company explains that "customers may intermittently experience either a rear camera blue image or a full blue or black image on the SYNC [infotainment system] screen when the vehicle is placed in reverse, or when the 360-degree view is selected and available." It adds that losing the camera's image while backing up increases the risk of the crash. The cause of the problem varies from model to model. Ford has narrowed it down to the camera hardware, the wiring retention, and the Image Processing Module - V (IPMB) software. It adds that "fretting corrosion causes tin oxide formation on the internal camera connector due to [a] thermally-induced micro-movement between the tin-plated contact surfaces," and that the rate of tin oxide accumulation depends on factors such as the temperature and the humidity. It has also traced some of these issues to a problem during the manufacturing process. Ford will begin notifying owners of affected vehicles by mail on October 2. When parts are available, owners will be asked to bring their van or SUV to an authorized dealer so that a technician can replace the rear-view camera. Transit models included in the campaign will also receive a software update. Owners who have already paid to fix the problem can claim a reimbursement until June 30, 2024. This isn't Ford's first rear-view camera-related recall.

Ford Explorer problems gutted third-quarter sales

In early September, the Detroit Free Press published a feature noting numerous problems Ford's having with the 2020 Explorer and 2020 Lincoln Aviator launches. Issues with both SUVs, built at Ford's Chicago Assembly Plant, were so rife and dire that the automaker was trucking the vehicles 275 miles away to Michigan for repairs. Bloomberg reported earlier this month that Explorer's third-quarter sales dropped 48 percent compared to the previous model in 2018, with dealers unable to get enough units on lots for customers. Nor is the snafu over: Automotive News reports that another "batch of about 2,500 Explorers in need of repairs" arrived recently in Michigan, and sales through the first nine months of 2019 are down 31 percent. Sales dips during model changeovers are to be expected as old inventory gets sold down and new production ramps up, but this is different. Ford U.S. sales boss Mark LaNeve told Bloomberg earlier this month, "We’ve got adequate inventory in our stores. For Q4, availability wonÂ’t be an issue. WeÂ’ll be able to hit our stride with Explorer starting now." It's hard to know whether that's true, with thousands of Explorers still piling into Michigan; the batch AN mentioned represents about 5 days of sales during an average month in 2018, before the drawdown and interruptions hampered matters. And when Consumer Reports tested the Ford Explorer it bought this summer, it titled the review, "2020 Ford Explorer drives nicely but has many flaws / Poor interior quality and a high price overshadow the SUV's improvements."   On top of that, the AN piece mentions a new impediment to uncorking the Explorer sales stream: Worker strife in the Chicago plant. Allegedly, "Roving groups of workers are intimidating other employees, creating a hostile environment, the people said. ThatÂ’s driving up turnover and leaving some vehicle assembly unfinished, contributing to the company having to complete the work at the Michigan factory or at dealerships, the people said." Ford's been fined twice before for the same kinds of issues at its plants, once in 1999, again in 2017, but a spokesperson said Ford isn't aware of any such problems now. The pressure otherwise has got to be unpleasant for everyone on the Explorer team, from CEO Jim Hackett down. The automaker was meant to be "turning the corner" in April, but as of now, shares are down, credit rating is down, earnings are down.