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Ford's Farley will challenge dealers to cut EV cost to customers by $2,000

DETROIT — Ford Motor Co Chief Executive Jim Farley will go to Las Vegas next week to roll the dice on a strategy to convince dealers to cut as much as $2,000 from the cost of delivering an electric vehicle to a customer. Ford has told dealers that one key topic for the meetings will be a discussion of new agreements that would govern how dealers sell Ford's expanding lineup of electric vehicles. Farley told analysts in July that Ford needs to cut $2,000 a vehicle out of selling and distribution costs to be competitive with Tesla Inc and other electric vehicle startups that sell directly to consumers without franchised dealers. About a third of those savings could come from what Farley called a "low inventory model," where customers order a vehicle and Ford ships it to the customer, rather than stocking vehicles on dealer lots for weeks or months. "We think that's about -- worth maybe $600, $700 in our system," Farley told analysts. Tesla can also adjust prices rapidly on its website, and keep most of the gain from a price increase. Ford declined to comment other than to say “we are excited to meet next week with our North America dealers to grow and win together.” Dealers said they expect Ford to outline minimum investments for charging stations and other equipment to support electric vehicle customers. A key question will be how quickly dealers will be required to install chargers, which dealers said can cost as much as $500,000. "The manufacturers so far have let us scale into it and I think Ford will hopefully do the same thing. You just can't say, 'Listen, we're going to sell 2 million electric cars five years from now and we expect you to put in five superchargers,'" said Rhett Ricart, owner of Ricart Ford, a large dealership in Columbus, Ohio. Tesla's success at selling electric vehicles without franchised dealers is putting pressure on all established automakers to overhaul their retail networks. A shift by Ford to a Tesla-style build to order system could come with caps on the profit margins dealers can earn on a new vehicle sale, some dealers said. "I see dealer margins still being very competitive, but they are going to shift," Farley said in July. Ford intends to put more emphasis on selling products and services after the initial vehicle sale, he said. Dealers said state franchise laws could give dealers leverage to resist efforts by Ford to set fixed prices or fixed fees for delivering electric vehicles.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Chief designer for Lincoln Aviator SUV is brand's new design director

The man behind the looks of cars like the 50th anniversary 2015 Ford Mustang, the current-generation Lincoln Continental and the luxury division’s new 2020 Aviator SUV is LincolnÂ’s newest design director. Kemal Curic replaces David Woodhouse, who left earlier this year and is now a vice president overseeing design at Nissan and Infiniti. Curic, 41, was born in Sarajevo and grew up in Germany and Croatia. He began his career with Ford of Europe in 2003 after earning a bachelorÂ’s degree in industrial design and a masterÂ’s in transportation design in Germany. There, he worked on the European version of the Fiesta, the Mondeo (the European version of the Fusion) and the Kuga compact SUV. aviator-4 View 38 Photos In 2010, Curic won a global sketch competition Ford created to pick a designer for the 50th anniversary Mustang. He moved to FordÂ’s headquarters in Dearborn, where he joined the design team for the 2015 Ford Mustang, which won the EyesOn Design award for Best Production Vehicle at the 2014 Detroit auto show. Curic became exterior design manager in 2014 for the reborn Lincoln Continental sedan, then lead the overhaul of the brandÂ’s design language. He became chief designer for the three-row Aviator, which debuted at the 2018 L.A. Auto Show, and he served a lead exterior designer on the all-new 2020 Corsair, LincolnÂ’s compact crossover that was formerly known as the MKC. In an interview earlier this month with Truck Trend, Curic talked about how the midsize Aviator exemplifies LincolnÂ’s new design ethos. “This is the anti-wedge, which is very elegant,” he said. “If you think about cars of the 1960s, they had that exuberant attitude with more anti-wedge than most vehicles today. Think about the angle of attack of an airplane. You have this gliding gesture, sort of leaning back. The anti-wedge, a teardrop shape, is also the most optimized shape for aerodynamics.” Curic has said he was captivated by American cars as a child growing up in Europe, and he told Truck Trend that he grew up doodling cars in his notebooks at school, which sometimes got him in trouble and made his parents worry. HeÂ’ll reportedly split his time between Dearborn and LincolnÂ’s design studio in Irvine, California, where he lives with his family.