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Ford tweaking Model E dealer program to address dealer concerns

Ford's been working on its strategy and sales reorganization for a couple of years, the initiative that created the Blue (ICE), Pro (commercial), and Model E (electric) divisions. On the Model E side, part of continuous reworking of the EV arm has been in response to dealer lawsuits filed in numerous states, since Model E not only stipulated investments of anywhere from $500,000 to $1.2 million, the automaker initially wanted dealers to set no-haggle pricing, offer remote pickup and delivery for service appointments, and build chargers that would operate around-the-clock. Another big part of the tweaks to Model E is the continually unstable ground the entire electric project is built on. As part of understanding what dealers are facing and how to keep the electric wheels turning, Automotive News reports that the automaker held 11 meetings with dealers this year in six cities. Based on the feedback, more changes are coming to Model E as soon as next month.   During the roadshow, Ford told dealers to pause their investments into getting certified for Model E. This directive followed a corporate change in plans as Ford pulled investments in battery-electrics in favor of consumers' choice for hybrids. The head of Ford Blue — the internal-combustion-powered division that, with Ford Pro, has been paying the bills as Model E posts big losses — told AN, "We don't want them to make any decisions between now and the middle of June, when you can maybe have a more informed decision-making process based off what we work out with council in the next few weeks." One change has already been made public, the VP of EV programs telling an AutoNews business conference audience, “What weÂ’re finding is more dealers want to be involved in it and we donÂ’t want to be exclusive to just a handful, and so weÂ’re making a change where weÂ’re opening up that and not requiring as many certifications or investments for a dealer to participate in the EV revolution." Don't take that comment as a revelation; since the beginning, dealers complained about being excluded and needing to throw so much money at the program. Take that comment as Ford needing to find a better way in the "rapidly changing" environment. The official list of updates won't come until next month, when Ford meets its dealer council, and it should touch on topics beyond EVs.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

2015-2019 Lincoln MKC recalled over fire risk in engine bay

Ford has commenced a recall of 142,734 examples of the Lincoln MKC from the 2015 to the 2019 model years. The potential issue centers on the battery monitor sensor in the compact luxury crossover. After reports of 19 fires in MKCs in the U.S., Canada and China, Ford's internal investigation found that the monitor sensor housing could be damaged when technicians worked in that area of the engine bay. If the housing damage caused the sensor to short circuit, the short could lead to an electrical load in the sensor's power circuit that causes enough heat to set fire to surrounding material. That could lead to a fire in the engine bay at any time, while driving or even when the MKC is turned off. The Lincolns were built from August 20, 2013 to August 2, 2019. The automaker says it isn't aware of any injuries or accidents due to this; all of the models that caught fire were parked and off at the time. Because of the risk of fire at any time, Ford is recommending that owners park outside and away from structures until owners have had the issue repaired. The fix is a trip to the dealer to have a fuse added to the battery monitor sensor power circuit that can kill the current in the event of a short. Ford will begin sending letters to MKC owners on June 26. In the meantime, owners are free to contact Ford customer service at 866-436-7332 to find out more about the recall or if their MKC is affected, or they can get in touch with their local Ford or Lincoln dealer. The company's internal number for this recall is 23S28. Owners can also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 888-327-4236 (TTY 800-424-9153), or go to www.nhtsa.gov, and refer to campaign number 23V378. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.