American legacy automaker Ford is urging dealers to pause their electric vehicle-related investments while it tweaks the EV certification program’s requirements, Detroit News reports.
Ford’s notice to dealers
Ford instructed dealers to press pause on investments in the electric vehicle certification program while it makes last-minute changes in the requirements in June. The changes come after the company executives completed a “Dealer Engagement Tour,” gaining insights from 1,000+ dealers over 11 meetings nationwide.
“We’re now in the process of reviewing all that collaborative engagement and turning it into immediate, mid-term and long-term changes where it makes sense for our customers, our Dealers and Ford.
We’re now in the process of reviewing all that collaborative engagement and turning it into immediate, mid-term and long-term changes where it makes sense for our customers, our Dealers and Ford.”
Ford spokesperson Marty Günsberg
Ford said it will update dealers about the changes amid a “rapidly changing EV market.”
“Ford recommends that dealers pause their action items and qualifiers related to the voluntary program until we complete our review and work with the Dealer Council in June.”
Ford spokesperson Marty Günsberg
Previous instructions
In hindsight, Ford announced a June 30 deadline for dealers to invest in Level 2 electric vehicle charging stations to qualify for the Model e certification program and gain clearance to sell EVs.
In November, Ford alleviated the requirements. It encouraged its dealers to be “certified” in the EV program by offering two Level 2 chargers, down from five, by the end of June. It also lowered the requirement from five to three Level 2 chargers to be “certified elite.” Ford also eliminated the Level 3 fast charger requirement for 2026. Moreover, it diminished employee training requirements.
It has also since continued to make revisions to its all-electric programs, such as the 2-year launch delay of a three-row SUV due to slower-than-expected sales.
Main concerns
One of the main concerns among automotive dealers is the “rapidly changing EV market,” according to Ford Blue President Andrew Frick. He even warned of more changes in the near future.
“There’s a lot that we’ll be reviewing.”
Andrew Frick, Ford Blue President
Ford will meet with its dealer council in early June to finalize the changes based on the feedback it gained from nationwide gatherings.
Ford seeks to align its dealer network while delaying EV plans and shifting to smaller and more profitable electric vehicle models. The Ford Blue President omitted to share specific details, but he assumed that the dealer council and company executives were on the same page.
“I think we’re both pretty aligned on the process based on what we heard.”
Andrew Frick, Ford Blue President
Notably, the news comes after the American legacy automaker asked suppliers for ideas on reducing electric vehicle costs earlier this week. It is crucial for the company to cut costs, considering the $1.3 billion it lost in its EV unit in Q1 2024.
