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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 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.

Automakers tussle over owners of 'orphan' makes

When General Motors put down several of its brands in recent years, it also let loose thousands of brand-loyal customers who will eventually need another car.
R.L. Polk Associates estimates there are more than 18 million cars from 16 discontinued makes on the road today. Those "orphan owners" have sales-hungry competitors seeing dollar signs. GM is offering Saturn owners $1,000 cash toward a Chevy Cruze, Cadillac CTS or a GMC Acadia. Ford is giving its Mercury lease customers a chance to get out of their contracts with no early-termination penalty and offering to waive six remaining payments if they drive off in a Ford or Lincoln.
Edmunds.com research shows the efforts are paying off somewhat for GM, with 39 percent of Pontiac owners, 37 percent of Hummer owners and 31 percent of Saturn owners taking delivery of another GM-branded vehicle. But that leaves as much as 69 percent of owners going elsewhere. Ford, Honda and Toyota seem to be attracting many former GM owners.